Posted: 27/03/15

Parkmead, the UK and Netherlands focused oil and gas group, is pleased to report its interim results for the six-month period ended 31 December 2014. 

 

HIGHLIGHTS 

 

Successful exploration leading to trebling of gas production

 

• New gas field discovered onshore in the Netherlands at Diever West
• Diever-2 well flowed at 29 million cubic feet per day gross (approximately 5,000 barrels of oil equivalent per day) and is expected to be tied into existing production facilities in Q4 2015 via a fast-track development 
• Further production enhancement work planned in 2015 on Parkmead’s low operating cost Netherlands portfolio, including a new well at the Geesbrug gas field to maximise gas production
• Net gas production in the Netherlands forecast to more than treble by the end of 2015, acting as a natural hedge to the current low oil price environment
• Awarded six new oil and gas licences in the UKCS 28th Licensing Round, covering a total of nine offshore blocks
• Awards include significant new acreage and proven oil fields within the vicinity of the Parkmead operated Perth Dolphin Lowlander (PDL) oil hub development 
• UKCS 28th Licensing Round awards grow Parkmead’s total number of oil and gas blocks across the UK and Netherlands to 61, with 48 of these operated by the Group

 

Significant progress on valuable development projects

 

• Entered into a Heads of Agreement outlining the structure of a joint development of the Perth, Dolphin and Lowlander fields after detailed technical analysis and development planning
• The PDL project has been fully appraised with a combined total of 13 wells drilled and now has expected recoverable reserves of approximately 80 million barrels of oil, double the initial recoverable reserves of a standalone Perth development  
• Platypus gas field advancing well, with Field Development Plan (FDP) submission expected in Q4 2015

 

Reserves and resources increasing

 

• Considerable 2P reserves of 26.0 million barrels of oil equivalent at December 2014
• Contingent resources increased by 142% to 40.0 million barrels of oil equivalent (16.5 million barrels of oil equivalent at December 2013)

 

Well positioned for further acquisitions 

 

• Six acquisitions, at both asset and corporate level, have already been completed since repositioning Parkmead as a new independent oil and gas company
• Parkmead is well capitalised with over US$60 million of cash resources at end 2014
• The Parkmead team is evaluating further acquisition opportunities to take advantage of the current low oil price environment 

 

Financial strength 

 

• Total assets grew by 34% to £109.6 million at 31 December 2014 (2013: £81.5 million)
• Revenue increased to £10.1 million (2013: £9.9 million)
• Strong cash position of £39.4 million (US$ 61.5 million) as at 31 December 2014

 

Tom Cross, Executive Chairman of Parkmead commented:

 

“I am pleased to report significant progress in the period to 31 December 2014. Parkmead discovered a new onshore gas field at Diever West, in the Netherlands, which delivered excellent production flow rates, providing an additional near-term cash flow opportunity to the Group. Parkmead expects to treble the Group’s net gas production in the Netherlands through a low-cost work programme during 2015. This will act as a natural hedge to the low oil price environment. 

 

Parkmead’s new licence awards in the 28th Round were an outstanding result for our Company, with nine new offshore oil and gas blocks awarded to the Group. We were delighted with the awards located close to our large PDL development, as they have the potential to add significant value to the project.  Contingent resources have increased by 142%.

 

Parkmead is well positioned to take advantage of the lower oil price environment and the opportunities that are arising from this. We have significant cash resources, and a growing low-cost gas portfolio. The Group will continue with its licensing and acquisition-led growth strategy, securing opportunities that maximise value for our shareholders”.

 

 

The Parkmead Group plc

Tom Cross, Executive Chairman    01224 622200

Ryan Stroulger, Finance Director

 

Charles Stanley Securities    

Nominated Adviser & Broker

Marc Milmo / Karri Vuori / Carl Holmes    020 7149 6000

 

Instinctif Partners Limited

David Simonson / Anca Spiridon    020 7457 2020

 

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