TIDMPMG
RNS Number : 7608G
Parkmead Group (The) PLC
10 August 2016
10 August 2016
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Parkmead doubles its stake in two UK oil fields
Parkmead, the UK and Netherlands focused independent oil and gas
group, is delighted to announce that it has 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. Parkmead has acquired a further 50% of
Licence P.2218, and now operates the licence with 100% equity.
Parkmead initially secured its first 50% interest in these blocks
as part of the UK 28th Licensing Round awards, where the Company
won a total of nine new oil and gas licences covering 12 offshore
blocks.
The Polecat and Marten fields lie approximately 20km east of the
significant Buzzard field, and are located close to Parkmead's
large Perth-Dolphin-Lowlander (PDL) hub project in the prolific
Moray Firth area of the Central North Sea. Polecat and Marten are
two sizeable existing Buzzard sandstone oil accumulations, which
are jointly estimated to hold over 90 million barrels of oil in
place and over 33 million barrels of contingent resources. Through
this acquisition, Parkmead has increased the Group's total
contingent resources by 39%, from 42.5 to 59.1 million barrels of
oil equivalent.
Polecat and Marten could be highly valuable to Parkmead as,
given their close proximity to PDL, they could be jointly developed
as part of the Greater PDL Area project.
Polecat was discovered in 2005 and appraised in 2010. The 2010
appraisal well was flow tested at 4,373 barrels per day of good
quality 32deg API oil. The Marten discovery was made in 1984,
encountering three oil bearing sandstones of Upper Buzzard age.
Parkmead benefits from the large amount of existing data on the
block, gathered as a result of wells already drilled in the
area.
Strong Netherlands gas production
The Diever West gas field, located onshore in the Netherlands,
continues to perform above expectations and gross production in
July 2016 averaged 34 million cubic feet per day (approximately
5,850 barrels of oil equivalent per day). 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.
The profitable gas production from Diever West, and Parkmead's
wider portfolio of gas fields in the Netherlands, provides
important cash flow to the Group. The Company's low-cost onshore
portfolio in the Netherlands produces gas from four separate fields
with a very low average operating cost of just US$14 per barrel of
oil equivalent.
A number of enhanced production opportunities have been
identified within Parkmead's existing Netherlands portfolio, which
the Group intends to capitalise on with the aim of further
increasing its net gas production. These include a new low-cost
infill well at Geesbrug, a sidetrack at Wijk en Aalburg and
workovers at Brakel and Grolloo. In addition, a further
Rotliegendes exploration target, De Mussels, has been identified.
Parkmead's gas production in the Netherlands serves as a natural
hedge to low and volatile oil prices.
Further value-adding opportunities
Parkmead continues to analyse value-adding opportunities,
including UK and Netherlands-based acquisitions, and is focused on
strengthening its positions in core areas of the Group's portfolio.
Parkmead has maintained a strong and clean balance sheet.
Tom Cross, Executive Chairman, commented:
"We are delighted to have doubled our stake in these two oil
fields, which significantly increases Parkmead's contingent oil and
gas resources by some 39%.
Polecat and Marten could be highly valuable to Parkmead's PDL
project by contributing an additional 90 million barrels of oil in
place to the already large oil and gas reserves base at PDL.
We are also pleased to report the continued outperformance of
the Diever West gas field which has been producing at stable rates
of around 30 million cubic feet per day since coming onstream,
significantly ahead of expectations.
Parkmead is working intensively to evaluate and execute further
value-adding opportunities in its 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
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 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 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. 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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