TIDMPMG
RNS Number : 1472E
Parkmead Group (The) PLC
07 February 2018
7 February 2018
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Parkmead increases stake in Perth and Dolphin oil fields to 100%
and signs agreement with Nexen Petroleum to study potential
tie-back
Parkmead, the UK and Netherlands-focused independent energy
group, is delighted to announce it has significantly increased its
equity in the Perth and Dolphin oil fields in the UK Central North
Sea. The Perth and Dolphin fields lie at the core of Parkmead's
Greater Perth Area ("GPA") oil hub project. The Group has increased
its equity in these licences from 60.05% to 100%.
The Company has also signed an agreement with Nexen Petroleum, a
subsidiary of the China National Offshore Oil Corporation (CNOOC),
to conduct a detailed engineering study in relation to the
potential subsea tie-back of the Greater Perth Area project to the
Nexen operated Scott platform and associated facilities in the UK
Central North Sea. The Scott facilities lie just some 10km
southeast of Parkmead's GPA project.
In addition, Parkmead has commissioned a new reservoir study
with AGR Tracs International in relation to well stimulation, which
could lead to increasing oil flow rates and oil reserves recovery
from the two fields by analysing the effect of fracture stimulation
on the reservoir.
HIGHLIGHTS
-- GPA is one of the largest undeveloped oil projects in the North Sea
-- Increased equity in the Perth and Dolphin fields raises
Parkmead's 2P reserves by 63% from 28.4 to 46.3 million barrels of
oil equivalent ("MMBoe")
-- Parkmead now in full control of the GPA oil hub project with operatorship and 100% equity
-- Agreement signed with Nexen Petroleum, a subsidiary of CNOOC
Ltd, to undertake a detailed engineering study for the potential
subsea tie-back of the GPA project to the Nexen operated Scott
facilities in the Central North Sea
-- Nexen's Scott facilities lie approximately 10km southeast of Parkmead's GPA project
-- Subsea tie-back has the potential to transform the GPA
project, commercially and economically, in addition to dramatically
reducing the cost to achieve first oil production
-- New reservoir study with AGR Tracs International could
substantially increase the assumed recovery factor of the
oil-in-place volumes at the Perth field, which stands at 197
million barrels of oil ("MMBbls") for core Perth and 498 MMBbls
including the northern areas of the field
-- The Perth reservoir has a gross oil column of around 2,000
feet, making the reservoir ideal for fracture stimulation
-- Parkmead is in discussions with a number of leading,
international service companies in relation to the GPA project
The Perth and Dolphin fields are located across Blocks 15/21a,
b, c and f & 14/25a in Licences P.218, P.588 and P.2154.
Parkmead has increased its equity in these licences from 60.05% to
100%, which has driven a 63% increase in Parkmead's 2P reserves
from 28.4 MMBoe to 46.3 MMBoe.
The Scott field lies approximately 10km southeast of Perth and
is operated by Nexen. A tie-back of the GPA project to the Scott
facilities could yield a number of mutually beneficial advantages
for both the Scott partnership and Parkmead. Utilisation of this
export route has the potential to transform the GPA project
commercially and economically, dramatically reducing the capital
expenditure required to bring the GPA project onstream and
operating costs thereafter.
The study with Nexen will specifically be looking at the
detailed engineering of the tie-back, including topside
modifications and processing at Scott, as well as caisson design
work. Subsea 7 and Ingen (a subsidiary of Amec Foster Wheeler) will
be providing additional technical expertise during the study.
Parkmead has also commissioned a new reservoir study with AGR
Tracs International in relation to well stimulation. The outcome of
this study could substantially increase the predicted recovery
factor of the two fields by analysing the effect of fracture
stimulation on the reservoir. The Perth field benefits from having
a very large volume of oil-in-place, which stands at 197 MMBbls for
core Perth, and 498 MMBbls when including the northern areas of the
field. The Perth reservoir has a gross oil column of c.2,000 feet,
making the reservoir ideal for fracture stimulation.
Perth and Dolphin are located in the Moray Firth area of the UK
Central North Sea, which contains very large oil fields such as
Piper, Claymore and Tartan. Through a series of licensing round
successes and strategic acquisitions, Parkmead has established a
key position in this area of the North Sea. Perth and Dolphin are
two substantial Upper Jurassic Claymore sandstone accumulations
that have tested 32-38deg API oil at production rates of up to
6,000 bopd per well. At Perth, the Claymore Sandstone forms a
combined structural-stratigraphic trap, onlapping the Tartan Ridge
to the North, with a southward-thickening and dipping sandstone
wedge. The sandstones that comprise the accumulation were deposited
as deep-water turbidites sourced from the Halibut Horst, with a
minor contribution from the Tartan Ridge.
Parkmead made a number of important growth steps during 2017 in
relation to the GPA project. An invitation to tender was announced
to the service provider market, covering the pre-FEED, FEED and
subsequent development phases of the project. Parkmead was pleased
to report that 13 alliance submissions were received, comprising 35
companies, across all project components of drilling, subsea
construction and export route options. After evaluating the
proposals, Parkmead is holding onward discussions with a number of
leading, internationally renowned service companies.
The majority of the proposals have focused on innovative
approaches to the potential development, with significant new work
carried out on well planning, timeline to production and financing.
A number of the proposals have also offered finance to the Group
for major parts of the development, further reducing the capital
expenditure required to bring the project onstream.
Tom Cross, Executive Chairman, commented:
"We are delighted with the significant progress we have achieved
with the Greater Perth Area project. By increasing our stake in the
Perth and Dolphin oil fields, Parkmead's oil and gas reserves grow
by some 63%.
The study with Nexen will examine one path to potentially unlock
the substantial value of the GPA project for the benefit of the UK
and Parkmead shareholders, as well as providing further value for
the existing infrastructure partners."
Enquiries:
The Parkmead Group plc +44 (0) 1224 622200
Tom Cross (Executive Chairman)
Ryan Stroulger (Chief Financial
Officer)
Panmure Gordon (UK) Limited
(Financial Adviser, NOMAD
and Corporate Broker to Parkmead) +44 (0) 20 7886 2500
Adam James
James Greenwood
Atholl Tweedie
Instinctif Partners Limited
(PR Adviser to Parkmead) +44 (0) 20 7457 2020
David Simonson
George Yeomans
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 May 2015, Parkmead completed a successful placing raising
US$21.1 million to accelerate opportunities.
4. 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.
5. 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.
6. In August 2016, Parkmead doubled 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.
7. 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.
8. In April 2017, Parkmead significantly increased its stake in
the major Sanda North and Sanda South prospects in the West of
Shetland area of the UK North Sea. Through this accretive step,
Parkmead increased its equity in the licence from 56% to 100%.
9. In May 2017, Parkmead announced that it had signed a Sale and
Purchase Agreement with Verus Petroleum (SNS) Limited to acquire a
50% interest in UK North Sea Licence P.2209 which contains the
Farne Extension prospect and a further four prospective leads.
10. 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
2P Those additional Reserves which analysis
of geoscience and engineering data
indicate are less likely to be recovered
than Proved Reserves but more certain
to be recovered than Possible Reserves.
It is equally likely that actual
remaining quantities recovered will
be greater than or less than the
sum of the estimated Proved plus
Probable Reserves (2P). In this context,
when probabilistic methods are used,
there should be at least a 50 per
cent. probability that the actual
quantities recovered will equal or
exceed the 2P estimate
------------- -------------------------------------------
Oil in place Is the total quantity of oil that
is estimated to exist originally
in naturally occurring reservoirs
------------- -------------------------------------------
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 estimate
case
------------- -------------------------------------------
Reserves Reserves are those quantities of
petroleum anticipated to be commercially
recoverable by application of development
projects to known accumulations from
a given date forward under defined
conditions. Reserves must further
satisfy four criteria: they must
be discovered, recoverable, commercial,
and remaining (as of the evaluation
date) based on the development project(s)
applied. Reserves are further categorized
in accordance with the level of certainty
associated with the estimates and
may be sub-classified based on project
maturity and/or characterized by
development and production status
------------- -------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCQDLBBVLFZBBQ
(END) Dow Jones Newswires
February 07, 2018 02:00 ET (07:00 GMT)
Parkmead (LSE:PMG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Parkmead (LSE:PMG)
Historical Stock Chart
From Apr 2023 to Apr 2024