Parkmead Group Buys 15% Stake In UK Gas Fields
November 15 2011 - 4:15AM
Dow Jones News
Parkmead Group PLC (PMG.LN) said Tuesday it has bought its first
physical oil and gas asset--a 15% interest in three blocks in the
U.K. Southern North Sea, containing the Platypus and Possum gas
prospects from Exxon Mobil Corp. (XOM) subsidiary XTO UK Ltd.
Due to a confidentiality agreement, the company said it was
unable to disclose the amount it paid for the interest. However, in
a separate release, the company said that Executive Chairman Tom
Cross has provided the company with a GBP8 million loan for the
acquisition and for the ongoing development of the assets acquired,
including drilling.
The two-year loan will have an interest rate of 2.5% above LIBOR
and it will be secured by a standard floating charge provided by
the group.
Parkmead said the acquisition marks an important step in the
first stage of its development to become a significant new
independent oil and gas company. The company's only other asset is
a 2.06% stake in Faroe Petroleum PLC (FPM.LN).
The Platypus Rotliegendes gas accumulation was discovered in
2010 by Dana Petroleum PLC which found 218 vertical feet of gas
bearing sands. Parkmead said that Platypus has the potential to
contain up to 180 billion cubic feet of gas in place.
The Possum structure is located immediately adjacent to the
Platypus gas field and has estimated resources of around 100
billion cubic feet of gas in place.
The operator, Dana Petroleum, holds a 45% stake and has secured
a rig to drill a well on the Platypus and Possum complex, scheduled
to start in the first quarter of 2012.
Shares at 0840 GMT were up 2.5 pence, or 19.6%, at 15.25 pence
in a slightly lower Alternative Investment Market--down 0.1%
-By Iain Packham, Dow Jones Newswires; 44-20-7842-9269;
iain.packham@dowjones.com
Parkmead (LSE:PMG)
Historical Stock Chart
From Aug 2024 to Sep 2024
Parkmead (LSE:PMG)
Historical Stock Chart
From Sep 2023 to Sep 2024