Pharos Exploration Well Commences Drilling

RNS Number : 3604P

Parkmead Group (The) PLC

01 October 2013

 



1 October 2013

The Parkmead Group plc

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

Pharos Exploration Well starts drilling in UK Southern North Sea

Parkmead is pleased to announce that the Pharos exploration well has commenced drilling in the UK Southern North Sea.

The Pharos gas prospect has the potential to contain up to 500 billion cubic feet of gas-in-place (86 million barrels on an oil equivalent basis) and is located in Blocks 47/4d, 47/5d and 47/10c. The Pharos structure is located only 14km south west of Parkmead's Platypus gas field, which was discovered in 2010 and successfully appraised with a horizontal well in 2012. Pharos is mapped as a much larger structure than Platypus and has the potential to contain almost three times more gas-in-place than the targeted amount at the successful Platypus discovery.

Pharos is a structural trap with the same Rotliegendes reservoir as the Platypus field which flow tested in 2012 at a rate of 27 million cubic feet of gas per day (4,500 barrels of oil per day on an equivalent basis). 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. A discovery at Pharos would be highly valuable because it could be jointly developed with Parkmead's Platypus gas field, located only 14km from the Pharos drill location. This would significantly increase the value of the already economic development at Platypus. Data attained from the Pharos well will also provide a greater understanding of the remaining prospectivity in this area, which includes the Blackadder gas prospect in the adjacent block to the south of Pharos.

The drilling operation is being undertaken by Dana Petroleum as operator using the Noble Lynda Bossler drilling rig. Parkmead holds a 20% working interest in Pharos, and the other joint venture partners are Dyas Exploration UK Limited and MPX North Sea Limited. 

Tom Cross, Executive Chairman of Parkmead, commented:

"We are delighted to report that the well targeting the large Pharos gas prospect has started drilling. If successful, Pharos could add significant further value to the Platypus gas field and also provide greater understanding of the exciting Blackadder prospect nearby.

Parkmead's oil and gas portfolio is growing rapidly, with the recent completion of the Lochard Energy Group plc acquisition, giving Parkmead a balanced asset base of production, development, appraisal and exploration opportunities."

Enquiries:

The Parkmead Group plc

Tom Cross (Executive Chairman)                       [phone]

Ryan Stroulger (Chief Financial Officer)              [phone]

Charles Stanley Securities (Financial Adviser, NOMAD and Corporate Broker to Parkmead)

Marc Milmo                                                       [phone]

Karri Vuori                                                         [phone]

Carl Holmes                                                       [phone]

Media Enquiries:

College Hill Associates (PR Adviser to Parkmead)

David Simonson                                                [phone]

Alexandra Roper                                               [phone]

Notes to Editors:

1.   Dr. Colin Percival, Parkmead's Technical Director, who holds a First Class Honours Degree in Geology and a Ph.D 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.

2.   Parkmead is an independent, upstream oil and gas company that is listed on AIM on the London Stock Exchange (symbol: PMG). Parkmead's primary focus is the oil and gas exploration and production sector, targeting transactions at both asset and corporate levels.

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, discovered in 2010, 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 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 gas-basin acquisitions were important, early steps in Parkmead's first stage of its development as a new independent energy company.

5.   In March 2012, Parkmead 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 provided the Group with its first producing fields. At the effective date of the acquisition, 1 January 2012, these assets were producing at a rate of approximately 2,000 boepd, delivering approximately 300 boepd net to Parkmead. In addition, the portfolio acquired provides the Group with future oil developments at Ottoland and Papekop. This acquisition completed in August 2012.

6.   In May 2012, Parkmead reached an agreement on the terms of a recommended acquisition of DEO Petroleum plc ("DEO") by Parkmead, to be implemented by way of a Court-sanctioned Scheme of Arrangement (the "Scheme").The Scheme became effective on the 9th August 2012. DEO's principal asset is its interest in the Perth field in the UKCS. As a result, Parkmead now owns 52% and is operator of the Perth field, which is targeting Proven and Probable (2P) reserves of 41.3 million barrels of oil (21.5 million barrels of oil net to Parkmead).

7.   In October 2012, Parkmead announced that the Group had been provisionally awarded several new licences under the UKCS 27th 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. In addition, Parkmead also applied for certain licences in the 27th Round, within the UKCS Southern Gas Basin, which are yet to be awarded by the UK Government due to their location close to, or in, certain Specific Areas of Conservation (SACs) and Special Protection Areas (SPAs).

8.   In December 2012, Parkmead raised approximately £15.925 million (gross) through an oversubscribed conditional placing of 130,000,000 new Ordinary Shares at 12.25 pence per share (the "Placing Shares"). The Placing Shares were placed with certain institutional and other investors (the "Placing").

9.   In July 2013, Parkmead completed its recommended offer for Lochard Energy Group plc by way of a Scheme of Arrangement. The acquisition gave Parkmead a 10% interest in the producing Athena oil field.

10. Through its wholly owned subsidiary, Aupec Limited, 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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