The agreement provides Orchard with the right to participate in the drilling of five oil and gas exploration prospects located in California.

Orchard also informed the market that it has overhauled its board, which will comprise of Stephen Graves (non-executive chairman), Stephen Warrener (executive director), Campbell Horsfall (non executive director) and existing director Frank Petruzzelli (non executive director).

John McGurk has resigned as director and chairman of the company while Richard Murphy has resigned as director and company secretary, Orchard said in a statement to the exchange.