TIDMPMG
RNS Number : 4032G
Parkmead Group (The) PLC
20 November 2015
20 November 2015
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
First gas production from the Diever West gas field
Parkmead, the UK and Netherlands focused independent oil and gas
group, is delighted to announce that first commercial gas
production has been achieved at the Diever West gas field in the
Netherlands. The field was discovered in September 2014 and, under
a fast-track and low-cost development programme, has been tied into
existing production facilities through a new dedicated pipeline
with gas extraction via the Garijp treatment system.
Parkmead has worked closely with its joint-venture partners on
the fast-track development of the Diever West field, and the
partnership has successfully brought the field onstream within just
14 months of discovery. This is an outstanding achievement.
Diever West is located onshore on the western edge of the Lower
Saxony Basin, approximately 10km to the east of the producing
Weststellingwerf, Noordwolde, Vinkega and Nijensleek fields, on the
Drenthe IIIb Production licence, which also contains Parkmead's
producing Geesbrug gas field.
The Diever-2 well was drilled in September 2014 on behalf of the
co-venturers by operator Vermilion Energy, and gas was discovered
in a good quality Rotliegendes age sandstone reservoir. A 157 foot
gas column was encountered, with both net pay and porosity values
exceeding pre-drill expectations. The well was flow tested after
the successful discovery and recorded an excellent flow rate of 29
million cubic feet per day (approximately 5,000 barrels of oil
equivalent per day).
The Lower Permian Rotliegend sandstone in this area contains
three productive formations, and Diever-2 confirmed the presence of
all three reservoir sections. The Slochteren Sandstone formation in
the vicinity possesses excellent reservoir properties, typically
exhibiting a net-to -gross ratio in excess of 90% and porosities of
approximately 20%.
Parkmead's gas assets in the Netherlands continue to provide a
robust revenue stream and important net cash flows to the Company.
A number of enhanced production opportunities are available across
Parkmead's existing Netherlands portfolio, which the Company
intends to capitalise on, with the aim of significantly increasing
its net gas production. These include a new low-cost infill well at
Geesbrug and a further exploration target at De Mussels. The new
production from Diever West and the additional Geesbrug well are
forecast to more than treble Parkmead's net gas production in the
Netherlands. This will serve as a natural hedge against low and
volatile oil prices.
Tom Cross, Executive Chairman, commented:
"We are delighted to achieve first gas from the Diever West
field in the Netherlands, which provides an important additional
revenue stream for Parkmead. The Company has already received
revenues from the first gas sales from the field.
Parkmead has worked closely with its joint-venture partners on
the fast-track development of Diever West. We have successfully
brought this new gas field onstream within just 14 months of
discovery. This is an outstanding achievement.
The new gas production from Diever West will act as a natural
hedge to the low oil price environment at this key stage in
Parkmead's growth."
Enquiries:
The Parkmead Group plc
Tom Cross (Executive Chairman) +44 (0) 1224 622200
Ryan Stroulger (Chief Financial Officer) +44 (0) 1224 622200
Panmure Gordon (UK) Limited (Financial
Adviser, NOMAD and Corporate Broker
to Parkmead)
Mark Taylor +44 (0) 20 7886 2500
Karri Vuori +44 (0) 20 7886 2500
James Greenwood +44 (0) 20 7886 2500
Instinctif Partners Limited (PR Adviser
to Parkmead)
David Simonson +44 (0) 20 7457 2020
Anca Spiridon +44 (0) 20 7457 2020
Notes to Editors:
1. Dr Colin Percival, Parkmead's Technical Director, who holds a
First Class Honours Degree in Geology and a Ph.D in Sedimentology
and has over 30 years of experience in the oil and gas industry,
has reviewed and approved the technical information contained in
this announcement.
2. Parkmead is an independent, upstream oil and gas company that
is admitted to trading on AIM on the London Stock Exchange (symbol:
PMG). Parkmead is focused on growth in the oil and gas exploration
and production sector, targeting transactions at both asset and
corporate levels.
3. In November 2011, Parkmead completed the acquisition of
stakes in UK Blocks 48/1a, 47/5b and 48/1c containing the Platypus
gas field and the Possum gas prospect. Mapping indicates the
potential for Platypus and Possum to contain up to 180 and 100
billion cubic feet of gas in place, respectively.
4. In December 2011, Parkmead agreed to acquire stakes in blocks
47/4d, 47/5d, 47/10c and 48/6c in the UK Southern North Sea, which
contained the Pharos gas prospect. These two gas-basin acquisitions
were important steps in the first stage of Parkmead's development
as a new independent energy company.
5. In March 2012, Parkmead agreed to acquire a portfolio of
Netherlands onshore assets comprising four producing gas fields and
two oil fields from Dyas B.V. This acquisition provided the Group
with its first producing fields and with future oil developments at
Ottoland and Papekop. This acquisition completed in August
2012.
6. In May 2012, Parkmead launched its recommended acquisition of
DEO Petroleum plc. As a result, Parkmead now owns 52% and is
operator of the UKCS Perth oil field
7. In October 2012, Parkmead was awarded several new licences
under the UKCS 27(th) Licensing Round. The six new licences
comprise interests in a total of 25 offshore blocks or partial
blocks across the Central North Sea, West of Scotland and West of
Shetland.
8. In July 2013, Parkmead completed its recommended offer for
Lochard Energy Group plc. This gave Parkmead a 10% interest in the
producing Athena oil field.
9. In December 2013, in the second tranche of the UKCS 27(th)
Licensing Round, Parkmead was awarded a further five UK blocks
through two new licences in the UK Southern North Sea. That made a
total award to Parkmead of 30 UK blocks across eight licences
within the UKCS 27(th) Licensing Round.
10. In January 2014, Parkmead completed a successful
oversubscribed placing raising US$66.0 million which provided the
Company with increased financial firepower and balance sheet
strength.
11. In April 2014, Parkmead completed the acquisition of a 20
per cent. interest in the Athena oil field from EWE VERTRIEB GmbH,
trebling Parkmead's interest in the Athena oil field to 30 per
cent.
12. In September 2014, Parkmead discovered a new gas field
onshore the Netherlands at Diever West.
13. In November 2014, Parkmead was awarded six new licences in
the UKCS 28(th) Licensing Round, all as operator. The six new
licences comprise interests in a total of nine offshore blocks
located in the Central and Southern North Sea.
14. In May 2015, Parkmead completed a successful placing raising
US$21.1 million to accelerate opportunities.
15. In July 2015, Parkmead was awarded three new licences in the
UKCS 28(th) Licensing Round. The three new licences comprise
interest in three offshore blocks located in the Southern North Sea
and West of Shetland vicinity.
16.Through its wholly owned subsidiary, Aupec Limited, The
Parkmead Group provides petroleum benchmarking and economics
expertise to a wide range of government bodies and international
oil and gas companies. Aupec has to date worked with over 100
governments, national oil companies, majors and independents,
across the world, as well as a number of multi-national agencies
such as the European Commission and the World Bank. Aupec is
currently undertaking an important benchmarking project for a group
of the world's largest super-major oil companies.
For further information please refer to Parkmead's website at
www.parkmeadgroup.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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