TIDMPMG
RNS Number : 7875J
Parkmead Group (The) PLC
14 September 2016
14 September 2016
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Parkmead increases its stake in major UK oil project
Parkmead, the UK and Netherlands focused independent oil and gas
group, is delighted to announce that it has increased its stake in
the Perth and Dolphin oil fields in the UK Central North Sea. 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. Through this
growth step, Parkmead has increased its equity in these licences to
60.05%. The Perth and Dolphin fields, which are both operated by
Parkmead, are at the core of Parkmead's major
Perth-Dolphin-Lowlander (PDL) oil hub project.
Perth and Dolphin are located in the prolific Moray Firth area
of the UK Central North Sea, which contains significant oil fields
such as Piper, Claymore and Tartan. Through a series of licensing
round successes and strategic acquisitions, Parkmead has
established an important position for itself in this area of the
North Sea. Perth and Dolphin are two sizeable Upper Jurassic
Claymore sandstone accumulations that have tested 32-38(o) API oil
at production rates of up to 6,000 bopd per well. As a result of
this latest move, Parkmead has increased the Group's total proved
and probable (2P) reserves by 19% from 23.5 to 27.9 million barrels
of oil equivalent.
This transaction follows Parkmead's recent acquisition of an
additional 50% equity in the Polecat and Marten fields, announced
on 10 August 2016. Polecat and Marten have the potential to 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.
PDL is one of the largest undeveloped oil projects in the North
Sea. During 2014, a joint development study was carried out to
assess the potential of a development of the Lowlander field with
Perth and Dolphin. The analysis indicated that a joint development
of the three fields could significantly increase the value of the
Perth area project.
The development of the Perth, Dolphin and Lowlander fields as a
single project would create valuable economies of scale, by using
the same dedicated production facilities, whilst providing a new
long-term hub for other future projects in the area. The three
fields have been fully appraised, with a combined total of 13 wells
drilled, and contain oil in place of over 400 million barrels. It
is expected that recoverable reserves from the PDL oil hub
development will be over 80 million barrels of oil, which is double
the initial recoverable reserves of the Perth field as a standalone
project.
Further value-adding opportunities
Parkmead continues to analyse further value-adding
opportunities, including UK and Netherlands based acquisitions, and
is focused on strengthening its positions in the core areas of the
Group's portfolio. Parkmead maintains a strong and clean balance
sheet.
Tom Cross, Executive Chairman, commented:
"We are delighted to have increased our stake in the Perth and
Dolphin oil fields, which significantly increases Parkmead's oil
reserves by some 19%.
This growth step strengthens Parkmead's asset base in the centre
of the Company's major PDL oil hub project, which is one of the
largest undeveloped oil projects in the North Sea.
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
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 30 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 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. In August 2016, Parkmead increased 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.
18. 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
Oil in place the total quantity of petroleum that is estimated to exist originally in naturally
occurring
reservoirs
Recoverable resources Those quantities of hydrocarbons that are estimated to be producible from discovered or
undiscovered
accumulations.
Proved and Probable or "2P" Those additional Reserves which analysis of geoscience and engineering data indicate are
less
likely to be recovered than Proved Reserve 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
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
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