Commencement of drilling

RNS Number : 6706O

Parkmead Group (The) PLC

15 October 2012

 



15th October 2012

The Parkmead Group plc

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

Spaniards East Well Begins Drilling in UK Central North Sea

Parkmead, the independent oil and gas company, is pleased to announce that the Spaniards East exploration well has commenced drilling, using the Will Phoenix semi-submersible drilling rig. The Spaniards East prospect is located on Block 15/21a, east of the Spaniards oil discovery and close to the producing Scott oil field and the Parkmead operated Perth oil development in the Central North Sea. 

The Spaniards oil discovery was made in 1989 by well 15/21a-38z, which flowed at a rate of 2,660 barrels of oil per day on test.  The Spaniards East well, which is targeting Upper Jurassic reservoirs, is expected to take around 40 days to drill and is aiming to test the down-dip oil reserves potential some 1.2 kilometres to the east of the Spaniards discovery well.  It is not planned to test the well.

The drilling operations are being undertaken by Premier Oil on behalf of the joint venture group. The other joint venture partners are Serica Energy, Cairn Energy, Faroe Petroleum, Maersk Oil and Atlantic Petroleum. Parkmead has a free-carried interest of 12.624 per cent. in the Spaniards East well and therefore Parkmead will not be required to make any cash contribution to the dry-hole cost of this well.

Tom Cross, Executive Chairman of Parkmead, commented,

"Parkmead is growing strongly. Spaniards East is our first exploration well offshore UK and hence is another important milestone in the Company's development.

This follows a highly successful summer where we have secured first production for the Group, in the Netherlands, and also expanded on the UKCS through the acquisition of DEO Petroleum plc, boosting both our oil and gas reserves.

In addition, we recently completed a successful horizontal well to appraise the Platypus gas field. Therefore, in a short time, Parkmead has established a balanced portfolio of exploration, development and producing assets, which will ensure future growth."

For enquiries please contact:

The Parkmead Group plc	01224 622200
Tom Cross, Executive Chairman
Donald MacKay, Chief Financial Officer
Kathryn Ramsay, Investor Relations
Charles Stanley Securities	020 7149 6000
Nominated Adviser & Broker
Marc Milmo
Carl Holmes
College Hill Associates	020 7457 2020
Nick Elwes
Alexandra Roper

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 upstream oil and gas exploration and production sector, targeting transactions at both asset and corporate levels.

2.   In November 2011, Parkmead completed the acquisition of stakes in UK Blocks 48/1a, 47/5b and 48/1c containing the Platypus gas field, discovered in 2010, and the Possum gas prospect. Mapping indicates the potential for Platypus to contain up to 180 billion cubic feet of gas in place.

3.   In December 2011, Parkmead announced that it had signed an agreement to acquire stakes in blocks 47/4d, 47/5d, 47/10c and 48/6c in the UK Southern North Sea, which contain the large Pharos gas prospect. This structure has the potential to hold up to 500 billion cubic feet of gas in place. These two acquisitions have marked important steps in Parkmead's first stage of its development as a new independent energy company. This acquisition completed in February 2012.

4.   In March 2012, Parkmead announced that it had signed an agreement to acquire a portfolio of Netherlands onshore assets comprising four producing gas fields and two oil fields from Dyas B.V. The acquisition of these assets provides the Group with its first producing assets. At the effective date of the acquisition, 1 January 2012, these assets were producing at a rate of approximately 2,000 boepd, being 300 boepd net to Parkmead. In addition, the portfolio acquired provides the Group with near term oil developments at Ottoland and Papekop with the former forecast to come onstream in 2013. This acquisition completed in August 2012.

5.   In May 2012, Parkmead announced that it had reached an agreement on the terms of a recommended acquisition of the entire issued and to be issued ordinary share capital of DEO by Parkmead to be implemented by way of a Court sanctioned Scheme of Arrangement under Part 26 of the Companies Act 2006 (the "Scheme").The Scheme became effective on the 9^th August 2012. DEO's principal asset is its interest in the Perth field in the UKCS. DEO owns 52% and is operator of the Perth Field. The Perth field is targeting Proven and Probable (2P) reserves of 21.5mmbls (net to DEO).

6.   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 largest super-major oil companies.

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

 

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