Acquisition of interests

RNS Number : 2175U

Parkmead Group (The) PLC

19 December 2011

 



Monday 19th December 2011

The Parkmead Group plc

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

Parkmead Acquires Stakes in the Pharos Gas Prospect and Four UKCS Gas Basin Blocks

The Parkmead Group plc is pleased to announce that it has signed an agreement with Sorgenia E&P (UK) Ltd. to acquire four stakes of 20% interest each in Blocks 47/4d, 47/5d, 47/10c and 48/6c in the UK Southern North Sea. These four blocks contain the 47/10-8 gas discovery as well as the large Pharos gas prospect and several significant additional exploration targets.

This acquisition follows Parkmead's recent deal which saw it enter the Platypus gas field and the Possum gas prospect, both nearby in the Southern Gas Basin. It further highlights Parkmead's strategy of investing in North Sea fields and blocks where the Group's technical and commercial teams have an extensive working knowledge of the assets. 

The four blocks now being acquired, subject to the usual partner and regulatory approvals, are located in a prolific part of the Southern North Sea, between the producing Amethyst, Ravenspurn, West Sole and Hyde Fields.  Importantly, these licence areas are adjacent to Blocks 48/1a, 47/5b and 48/1c recently acquired by Parkmead and holding the Platypus field and the Possum prospect. Both Platypus and Possum are structural traps containing a Rotliegendes age reservoir, which is the dominant gas producing horizon in the Southern North Sea. The Pharos prospect is also a structural trap with the same Rotliegendes reservoir. The historical drilling success rate within this play has been very good. A discovery at Pharos could be jointly developed with the Platypus field, which is only some 14km to the north east of Pharos, and this would significantly increase the economic value of all three accumulations at Platypus, Possum and Pharos.

The operator, Dana Petroleum, holds a 50% stake and the joint venture group plans to drill the Pharos well in 2H 2012. The Pharos prospect is a large closure with a vertical relief of up to 600 ft, and an areal extent of up to 6,000 acres. The planned 2012 exploration well will be drilled in Block 47/5d, towards the boundary with 47/4d, on the north western end of the Pharos Structure. This structure has the potential to contain up to 500 billion cubic feet of gas in place.

Tom Cross, Executive Chairman of Parkmead, commented:

"We are delighted to be gaining stakes in these attractive licence areas, which are in close proximity to our interests in the Platypus gas field and the Possum prospect. These four blocks contain a number of targets, including the large Pharos prospect which we expect to drill later in 2012, following the next well being drilled at Platypus in 1Q 2012."

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. In November 2011, Parkmead completed the acquisition of UK Blocks 48/1a, 47/5b and 48/1c containing the Platypus gas field and the Possum gas prospect. The acquisition marked an important step in Parkmead's first stage of its development as a new independent energy company.

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 Parkmead 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 currently being acquired by Parkmead, and their respective interests, are as follows:

For Blocks 47/4d and 47/5d:

Parkmead (E&P) Ltd	20.00%
Dana Petroleum (E&P) Ltd (Operator)	50.00%
Sorgenia E&P (UK) Ltd	15.00%
MPX North Sea Limited	15.00%

For Blocks 47/10c and 48/6c:

Parkmead (E&P) Ltd	20.00%
Dana Petroleum (E&P) Ltd (Operator)	50.00%
Sorgenia E&P (UK) Ltd	30.00%

3.   The Pharos gas prospect is situated approximately 14km to the south west of the Platypus gas field and the Possum gas prospect, stakes in both of these were acquired by Parkmead in November 2011.

 

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