Acquisition of gas field

RNS Number : 0993S

Parkmead Group (The) PLC

15 November 2011

 



15 November 2011

The Parkmead Group plc

("Parkmead", "the Company" or "the Group")

Parkmead Acquires Stake in Platypus Gas Field and Possum Gas Prospect, with Near-Term Drilling

The Parkmead Group plc is pleased to announce that it has completed an agreement with XTO UK Ltd., a subsidiary of Exxon Mobil Corporation, to acquire a 15% interest in Blocks 48/1a, 47/5b and 48/1c in the UK Southern North Sea. These blocks contain the Platypus gas field and the Possum gas prospect.

This acquisition marks an important step in Parkmead's first stage of its development to become a significant new independent oil and gas company. The Parkmead technical and commercial teams have a long history and detailed knowledge of these assets and therefore these blocks are an ideal fit for the Group's growth strategy.

The Platypus Rotliegendes gas accumulation was discovered in 2010 by the Dana Petroleum plc operated 48/1a-5 well, which encountered 218 vertical feet of gas bearing sands. The Platypus gas field, which lies 18km north north west of the West Sole gas field and 15km west south west of the Babbage gas field, has the potential to contain up to 180 billion cubic feet of gas in place. The 48/1a-5 well was suspended by Dana Petroleum and its partners in 2010 for potential re entry and future use as a gas production well.

The Possum structure is a Rotliegendes gas prospect, immediately adjacent to the Platypus gas field, with estimated resources of approximately 100 billion cubic feet of gas in place.

The operator, Dana Petroleum, holds a 45% stake and has secured a rig to drill a well on the Platypus / Possum complex scheduled to commence in Q1 2012. This well will be drilled horizontally through the Rotliegendes gas reservoir to confirm deliverability and is expected to be retained for use as a gas producer.

Tom Cross, Executive Chairman of Parkmead, commented:

"The Platypus and Possum areas are a valuable addition to Parkmead. We know the geotechnical aspects of these blocks intimately and believe they contain the potential for significant upside."

For enquiries please contact:

The Parkmead Group plc	01224 622200
Tom Cross, Executive Chairman	[e-mail]
Kathryn Ramsay, Investor Relations	[e-mail]
Charles Stanley Securities	020 7149 6000
Nominated Adviser & Broker
Marc Milmo / Carl Holmes
College Hill Associates	020 7457 2020
Nick Elwes

Notes to Editors:

1.   Parkmead is an independent oil and gas company that is listed on AIM on the London Stock Exchange (symbol: PMG). Parkmead's primary focus is in the oil and gas exploration and production sector, targeting transactions at both an asset and corporate level. The Company is seeking to exploit exploration and production opportunities to build a significant new independent oil and gas company and has recently appointed a proven, core oil and gas team. Parkmead's growth plans will be delivered through the combined knowledge, experience and strong track record of its team members and will draw upon the team's extensive industry and government relationships in the oil and gas sector.

Parkmead's capabilities have been significantly enhanced through the acquisition and integration of Aupec Limited ("Aupec").  As a result, going forward the Group plans to actively pursue investment and advisory opportunities throughout the North Sea, and internationally, using the combined capabilities of the enlarged Parkmead Group.

Through its wholly owned subsidiary, Aupec, the Group provides petroleum economics, benchmarking and valuation 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 most eminent super-majors.

For further information please refer to Parkmead's website at www.parkmeadgroup.com and Aupec's website at www.aupec.com

2.   The Co-Venturers in the licences being acquired by Parkmead, and their respective interests, are as follows:

For all Blocks 48/1a, 47/5b and 48/1c:

Parkmead (E&P) Ltd	15.00%
Dana Petroleum (E&P) Ltd (Operator)	45.00%
First Oil Expro Ltd	25.00%
CalEnergy Gas Ltd	15.00%

 

END

 

 

ACQLIFERLLLELIL