TIDMPMG
RNS Number : 6828W
Parkmead Group (The) PLC
11 November 2014
11 November 2014
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Six new licences awarded to Parkmead in UK 28(th) Licensing
Round
Parkmead is delighted to announce that it has been provisionally
awarded six new licences covering a total of nine offshore blocks
in the UK 28th Licensing Round, as announced by the Energy
Minister. These newly awarded licences are located in the Central
and Southern North Sea areas and will all be operated by Parkmead.
Three of the new licences significantly increase Parkmead's asset
base around the Company's large Perth Dolphin Lowlander (PDL) oil
hub development project.
These awards, which include new exploration prospects as well as
proven discoveries, follow on from Parkmead securing eight new
licences covering a total of 30 offshore blocks in the UK 27th
Licensing Round awards. The new licence awards take Parkmead's
total number of oil and gas blocks across the UK and the
Netherlands to 61, with 48 of these being operated by the Group.
These new licences complement Parkmead's strong existing asset base
of oil and gas production, new exploration prospects and the major
PDL oil hub development.
Parkmead has also applied for certain licences in the 28th Round
within the Southern Gas Basin and West of Shetland region, where
the Company already has significant operations. Parkmead notes that
the remaining 28th Round awards are expected to be announced at a
later date after further assessment of these specific areas by the
UK Government.
Tom Cross, Executive Chairman, commented:
"We are delighted with these major new licence awards, which
further increase the scale of Parkmead's oil and gas operations in
the UK. We are particularly pleased with the awards located close
to our large PDL development, as they have the potential to add
significant value to the project.
These awards complete an exceptional year for Parkmead, during
which we have substantially increased production and discovered two
new gas fields through our highly successful exploration
programme.
The new licences strengthen Parkmead's portfolio of exploration,
development and producing assets, which will underpin the Company's
continued growth."
The following awards have been offered to Parkmead and its joint
bidding groups:
Greater Perth Dolphin Lowlander (PDL) Area
Parkmead has been awarded three new licences located close to
the large PDL hub project in the Central North Sea, which include
stakes in five blocks.
Blocks 20/3c & 20/4a (Parkmead 50% and operator) are located
in the Outer Moray Firth Basin, approximately 20km East of the
significant Buzzard field. The blocks contain two sizeable existing
Buzzard sandstone discoveries, named Polecat and Marten. These oil
discoveries could potentially be hugely valuable to Parkmead as,
given their proximity close to PDL, they could be jointly developed
as part of the project. Polecat was discovered in 2005 and
appraised in 2010. The 2010 appraisal well was flow tested at 4,373
barrels of oil per day. The Marten discovery was made in 1984,
encountering three oil bearing sandstones of Upper Buzzard age. The
blocks also contain a Buzzard sandstone prospect (Badger) to the
north of Polecat that could add to the existing reserves base
within the licence. Parkmead will benefit from the large amount of
existing data on the block, gathered as a result of wells already
drilled in the area. Parkmead's co-venturer on this licence is
Atlantic Petroleum.
Block 14/25 (Parkmead 52% and operator) is situated adjacent to
the Parkmead operated Perth field in the Central North Sea.
Detailed mapping and seismic interpretation indicates an extension
to the Perth field (Perth West). An additional prospect has been
identified on the block at Lower Cretaceous Scapa level. The work
programme consists of obtaining 3D seismic to mature the prospects
and a drill or drop well. Parkmead's existing Perth partners are
the co-venturer's on the Block; Faroe Petroleum and Atlantic
Petroleum.
Blocks 15/11 & 15/16f (Parkmead 25% and operator) are
situated on the northern margin of the prolific Witch Ground Graben
in the Central North Sea, approximately 12km North of Parkmead's
Perth field and close to the large Tartan and Piper oil fields. Two
significant prospects, Fynn and Penny, have been identified in the
Upper Jurassic Piper Formation on the blocks. The work programme
consists of reprocessing existing 3D seismic data and drilling a
contingent well. Parkmead's partners on the new licence are Faroe
Petroleum, CalEnergy Gas and Verus Petroleum.
Central North Sea
Parkmead has been awarded a further two licences in the prolific
Central North Sea area.
Block 30/17e (Parkmead 30.5% and operator) lies adjacent to the
blocks containing the Skerryvore prospect in the Central Graben
area of the North Sea. Parkmead's extensive mapping and seismic
analysis indicates that the Skerryvore Chalk prospect extends into
Block 30/17e. The Skerryvore structure consists of two stacked
prospects at Palaeocene and Chalk level in the immediate area
associated with a Zechstein salt diapir. The Skerryvore Palaeocene
prospect is thought to be a southerly extension of the Talbot oil
discovery to the north, and the deeper Skerryvore Chalk prospect
shows a similar seismic response to the neighbouring Cawdor
discovery. A site survey has now been completed providing detailed
technical information on the Skerryvore location ahead of the
prospect being drilled in 2015. The Skerryvore prospect has the
potential to contain up to 122 million barrels of recoverable oil
on a most likely, P50 basis. Parkmead's existing Skerryvore
partners are the co-venturer's on Block 30/17e; Atlantic Petroleum,
Verus Petroleum and Dyas.
Block 16/22c (Parkmead 28% and operator) is situated on the
Fladen Ground Spur in the Central North Sea, and lies approximately
10km North East of the large Britannia and Alba fields. Two
prospects have been identified on the block, one at Palaeocene
level which overlies another prospect at Devonian level. Parkmead
will undertake a work programme consisting of reprocessing 3D
seismic with a drill or drop well. Parkmead's co-venturers on the
licence are Atlantic Petroleum, Verus Petroleum and Dyas.
Southern North Sea
Parkmead has been awarded a new licence consisting of two blocks
in the Southern Gas Basin, an area where Parkmead is building a
significant portfolio.
Blocks 42/19 & 42/20b (Parkmead 50% and operator) are
located adjacent to Parkmead's existing acreage targeting the Farne
propect, which was awarded in November 2013. The major prospect on
the new licence is an extension of the Farne prospect. The work
programme consists of obtaining 3D seismic data and a drill or drop
well. Our partner on the licence is Verus Petroleum.
Enquiries:
The Parkmead Group plc
Tom Cross (Executive Chairman) +44 (0) 1224 622200
Ryan Stroulger (Chief Financial Officer) +44 (0) 1224 622200
Charles Stanley Securities (Financial
Adviser, NOMAD and Corporate Broker
to Parkmead)
Marc Milmo +44 (0) 20 7149 6000
Karri Vuori +44 (0) 20 7149 6000
Carl Holmes +44 (0) 20 7149 6000
Instinctif Partners Limited (PR Adviser
to Parkmead)
David Simonson +44 (0) 20 7457 2020
Catherine Wickman +44 (0) 20 7457 2020
Notes to Editors:
1. The Parkmead Group is an independent oil and gas, exploration
and production company listed on the London Stock Exchange (symbol:
PMG), and is a constituent of the FTSE AIM 100 index. Parkmead is
focused on growth in the UK and Netherlands, targeting transactions
at both asset and corporate levels.
2. 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.
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, which is targeting Proven and
Probable (2P) reserves of 41.3 million barrels of oil (21.5 million
barrels of oil net to Parkmead).
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, Parkmead agreed to acquire a further 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.
10. Also 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.
11. 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.
12. 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.
13. In September 2014, Parkmead discovered a new gas field
onshore the Netherlands at Diever West.
14. 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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