TIDMPMG
RNS Number : 4815B
Parkmead Group (The) PLC
04 April 2017
4 April 2017
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Parkmead significantly increases its stake in highly prospective
West of Shetland area
Parkmead, the UK and Netherlands focused independent oil and gas
group, is delighted to announce that it has nearly doubled its
stake in the major Sanda North and Sanda South structures in the
West of Shetland area of the UK North Sea. These two large
Palaeocene prospects are both located within Block 205/13. Through
this accretive step, Parkmead has increased its equity in the
licence from 56% to 100%. The Sanda North and Sanda South
prospects, which are both operated by Parkmead, have the potential
to contain 280 million barrels of recoverable oil on a most likely,
P50 basis.
The licence covering Block 205/13 was originally awarded to
Parkmead as part of the UKCS 28th Licensing Round, where Parkmead
was awarded a total of six new oil and gas licences covering 10
offshore blocks.
Block 205/13 is situated in the Faroe-Shetland Trough in the
West of Shetland region of the UK North Sea, to the north east of
the Lancaster field. The Primary play fairway developed on this
acreage is the Paleocene Vaila Formation which forms the reservoir
in the important nearby oil fields at Foinaven, Schiehallion and
Loyal, and also in the Laggan and Tormore gas discoveries which are
situated to the north east of Sanda.
The Vaila Formation consists of a sequence of interbedded
sandstones, deposited in a submarine fan environment, and contains
five main reservoir units. Detailed mapping of Block 205/13
indicates two exploration targets, Sanda North and Sanda South,
which are defined by distinct amplitude anomalies in the Palaeocene
Vaila section.
The Sanda prospects have been de-risked through the drilling of
a previous well up-dip of the amplitude anomaly. Parkmead's
experienced team of geoscientists has already undertaken extensive
seismic reprocessing work on the licence and has recently acquired
detailed geochemical data from the previously drilled well. This
new data will be analysed to further de-risk the target ahead of a
drilling decision at Sanda.
Planned 2017 exploration drilling near to Parkmead licences
Parkmead notes the high-impact exploration plans which are
occurring close to the Parkmead operated Polecat and Marten oil
fields in the UK Central North Sea. Statoil has recently farmed
into a licence covering Blocks 20/5b & 21/1d, approximately
12km east of Polecat and Marten. It has been announced that Statoil
is currently undertaking a tender process for the hiring of a
drilling rig, expected to be awarded in the near future, in respect
of a planned exploration well to be drilled targeting the Verbier
prospect this summer. Verbier lies in the same play fairway as
Polecat and Marten, and shares many similarities with these fields.
In light of the findings of the Wood Review and the Maximising
Economic Recovery (MER) strategy for the UK North Sea, a discovery
at Verbier could have the potential to considerably increase the
value of nearby oil and gas assets already owned by Parkmead.
Further value-adding opportunities
Parkmead continues to analyse a number of further value-adding
opportunities, including UK and Netherlands based acquisitions, and
is focused on strengthening its position in these core areas of the
Group's portfolio. The Parkmead business development team is seeing
an upturn in M&A activity in our industry, and Parkmead's
strong and debt free balance sheet positions the Company to take
advantage of this improving environment.
Tom Cross, Executive Chairman, commented:
"We are delighted to have nearly doubled our stake in the very
large Sanda North and Sanda South prospects, which have the
potential to add major value to the Company.
The West of Shetland is an area that we understand well, and
this increased stake further builds on the strength of Parkmead's
asset portfolio in the UK.
We are pleased that high-impact exploration close to our acreage
could add further regional value to Parkmead's assets, at no cost
to our Company.
The team at Parkmead is working intensively to evaluate and
execute further value-adding opportunities in our core areas of the
UK and Netherlands."
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)
Adam James +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
George Yeomans +44 (0) 20 7457 2020
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
Notes to Editors:
1. Dr Colin Percival, Parkmead's Technical Director, who holds a
First Class Honours Degree in Geology and a PhD in Sedimentology
and has over 35 years of experience in the oil and gas industry,
has reviewed and approved the technical information contained in
this announcement. Parkmead's evaluation of reserves and resources
was prepared in accordance with the 2007 Petroleum Resources
Management System prepared by the Oil and Gas Reserves Committee of
the Society of Petroleum Engineers and reviewed and jointly
sponsored by the World Petroleum Council, the American Association
of Petroleum Geologists and the Society of Petroleum Evaluation
Engineers.
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 level.
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 in
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
interests in three offshore blocks located in the Southern North
Sea and West of Shetland vicinity.
16. In November 2015, Parkmead achieved first commercial gas
production from the Diever West gas field in the Netherlands.
Parkmead worked closely with its joint-venture partners on the
fast-track development of Diever West, and the partnership
successfully brought the field onstream within just 14 months of
discovery.
17. In August 2016, Parkmead increased its stake in the Polecat
and Marten oil fields in the UK Central North Sea. The Polecat and
Marten fields are located in Blocks 20/3c & 20/4a within
Licence P.2218 and Parkmead now operates the licence with 100%
equity.
18. In September 2016, Parkmead increased its stake in the Perth
and Dolphin oil fields in the UK Central North Sea to 60.05 per
cent. The Perth and Dolphin fields, which are both operated by
Parkmead, are at the core of Parkmead's major Greater Perth Area
oil hub project.
19. 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
Glossary of key terms
Recoverable resources Those quantities of hydrocarbons that are estimated to be producible from discovered or
undiscovered
accumulations.
P50 Reflects a volume estimate that, assuming the accumulation is developed, there is a 50%
probability
that the quantities actually recovered will equal or exceed the estimate. This is therefore
a median or best case estimate
This information is provided by RNS
The company news service from the London Stock Exchange
END
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