Posted: 24/03/16

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 2015. 

 

HIGHLIGHTS 

 

Successful fast-track development, substantial increase in gas production

 

• First commercial gas production achieved at the Diever West gas field in the Netherlands, following a successful fast-track development
• Excellent Diever-2 well is outperforming, averaging approximately 30 million cubic feet per day during February 2016 (approximately 5,100 barrels of oil equivalent per day) 
• Diever West field brought onstream within just 14 months of discovery
• Low-cost onshore gas portfolio in the Netherlands produces from four separate gas fields with an average operating cost of US$14 per barrel of oil equivalent 
• Further production enhancement work planned on Parkmead’s Netherlands portfolio, including new wells at the Geesbrug and Wijk en Aalburg gas fields to maximise production, serving as a natural hedge to the current low oil price environment
• Significant development opportunities exist within Parkmead’s Netherlands portfolio, in addition to low-risk exploration upside such as the Rotliegendes De Mussels prospect
• Detailed technical work has allowed Parkmead to high-grade its portfolio and release non-core acreage, significantly reducing licence costs  

 

Significant progress on valuable development projects and additional licence award 

 

• New minimal platform concept at the Platypus gas field further increases the attractiveness of the development
• Awarded a further new UK offshore licence, completing an excellent 28th Round for Parkmead
• Parkmead’s new licence is located in the highly prospective West of Shetland area targeting two new prospects (Sanda North and Sanda South) adjacent to existing Parkmead licences  

 

Building substantial oil and gas reserves and resources

 

• 2P reserves of 23.5 million barrels of oil equivalent as at 31 December 2015
• Contingent resources of 41.9 million barrels of oil equivalent as at 31 December 2015

 

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 US$43.8 million (£29.6 million) of cash resources as at 31 December 2015
• The Parkmead team is evaluating further acquisition opportunities to take advantage of the current low oil price environment 

 

Financial strength 

 

• Net assets of £74.6 million at 31 December 2015 (2014: £82.8 million)
• Revenue of £7.0 million (2014: £10.1 million)
• Strong cash position of £29.6 million (US$43.8 million) as at 31 December 2015
• Parkmead operates the majority of assets within its portfolio and therefore controls the timing and quantum of capital expenditure, with low capital commitments in 2016

 

Tom Cross, Executive Chairman of Parkmead commented:

 

“I am pleased to report significant progress in the period to 31 December 2015. Parkmead has developed a new gas field at Diever West, in the Netherlands, following its successful discovery. This is delivering profitable gas production and important additional cash flow to the Group. We successfully brought this new gas field onstream within 14 months of discovery, which is an outstanding achievement.

 

Parkmead is increasing the Group’s overall gas production in the Netherlands through a low-cost, onshore work programme. This will act as a natural hedge to the current low global oil prices.

 

We are delighted with our new additional licence award, in the West of Shetland region, which further increases the scale of Parkmead’s oil and gas operations in the UK. West of Shetland is an area we understand well and has the potential to add major value to the Company.

 

Parkmead is well positioned to take advantage of the lower oil price environment and the opportunities that are arising from this. We have excellent regional expertise, 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 long-term value for our shareholders.”

 

 

For enquiries please contact: 

 

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

Karri Vuori

James Greenwood

 

 

Instinctif Partners Limited (PR Adviser to Parkmead)      +44 (0) 20 7457 2020

David Simonson

George Yeomans

 

For full details please find the pdf version here