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Orcadian Energy PLC on Wednesday reported a narrowed full-year loss as it hailed a UK oil and gas regulatory change, which it anticipates will incentivise investment and lower fiscal risk. The low-emissions North Sea oil and gas development company said pretax loss narrowed 5.7% to £884,906 for the year ended June 30, from £938,471 the year before. This was largely due to there being no cost of impairment of intangible assets, compared to £186,158, as well as a £167,662 boost to other income from zero last year. Exploration and evaluation expenses jumped to £148,704 from zero, while pre-acquisition licence expenses rose 69% to £67,839 from £40,071. Orcadian attributed the loss primarily to ‘salaries, consulting and professional fees along with general administration expenses and new business development.’ No revenue was made, the same as the year before, as it continues to progress the development of its projects. Orcadian said progress in the period was hurt by a ‘challenging environment’ for the oil and gas industry, caused by UK political and regulatory changes, such as an increase and extension to a windfall tax on the sector. The company hailed ‘clarity’ on the replacement terms for the Energy Profits Levy, which it said has ‘massively diminished’ fiscal risk and will incentivise investment. The replacement is called the Oil and Gas Price Mechanism. ‘We can all wake up, the nightmare is over, it is time to get to work on planning projects, and with the rules established, work out how to make the best of the situation we find ourselves in,’ said Chair Joseph Darby and Chief Executive Stephen Brown. ‘We are very upbeat about the prospects for a renewed wave of North Sea investment,’ they added. ‘We believe the UK North Sea is on the verge of a resurgence and that Orcadian is well positioned to make the best of it.’ Shares in Orcadian Energy fell 2.6% to 13.40 pence on Wednesday afternoon in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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