Source: Sharecast
The AIM-traded firm said the decision would provide it with additional time to manage its financial obligations.
It said its proposed industry partner for the Earlham licence had made an initial payment of $0.1m to Orcadian, which in turn had been paid to Shell as an advance under the loan facility.
The advance was secured by a charge over the Earlham licence, with the project being exclusively dedicated to the industry partner until the end of August.
If the remaining funds due under the Shell facility were delivered by that deadline, the exclusivity arrangement would automatically extend until 31 December.
“We have been working very closely with both Shell and our industry partner to ensure that we can meet our obligations to Shell and to support our partner's financing processes which are ultimately intended to deliver a clear pathway to production for the Earlham discovery,” said chief executive officer Steve Brown.
At 1044 BST, shares in Orcadian Energy were up 6.15% at 10.35p.
Reporting by Josh White for Sharecast.com.