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Orcadian Energy PLC on Monday said it is exploring a potential royalty-based funding structure for Albion Labs Canada Ltd to buy royalty interests over some of Orcadian’s assets. The oil and gas development company said Albion Labs Canada subsequently plans to securitise and tokenise the royalty interests and offer them to its own investors. Orcadian noted that it would not be involved in tokenisation or distribution, which would be undertaken independently by Albion Labs. It said there ‘can be no assurance’ that Orcadian will successfully conclude negotiations with Albion Labs or that the proposed funding structure will proceed. The funding structure is designed to ‘minimise dilution to existing shareholders’ while allowing Orcadian to retain ownership and operational control of its licences and assets. The firm currently expects that royalties of up to 5% of revenue may be issued in this manner. It added that the initiative is intended to support the progression of Orcadian’s projects through to field development plan approval and ‘reflects the company’s view that rising demand from data centres, artificial intelligence and electrification is increasing the strategic importance of reliable energy supply’. ‘We are delighted to be exploring this funding structure with Albion Labs. We believe the North Sea continues to have an important role to play in meeting the UK’s energy needs,’ said Chief Executive Officer Steve Brown. ‘This funding structure provides an innovative way of financing and progressing our portfolio without diluting our shareholders, while retaining full ownership and operational control of our assets and enables investors to access returns from specific oil and gas fields while supporting the UK’s oil and gas industry.’ Shares in Orcadian Energy were down 0.9% at 17.10 pence on Monday afternoon in London. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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