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Parkmead Group (The) (PMG)

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Monday 30 December, 2013

Parkmead Group (The)

Parkmead Trebles its Production from Athena Field

RNS Number : 5292W
Parkmead Group (The) PLC
30 December 2013
 



30 December 2013

 

The Parkmead Group plc

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

 

Parkmead Trebles its Oil Production from Athena Field

 

Parkmead is delighted to report that it has signed an agreement with EWE VERTRIEB GmbH ("EWE") to acquire a 20 per cent. interest in UK production licence P.1293 (Block 14/18b ALL) which contains the Athena oil field. Completion of the acquisition is subject to the usual partner and regulatory approvals.

Following the acquisition of Lochard Energy Group PLC, completed in July 2013, Parkmead already holds a 10 per cent. interest in the producing Athena oil field. This acquisition will therefore treble Parkmead's stake to 30 per cent. 

Production at Athena averaged approximately 9,000 barrels of oil per day in Q2 2013. The field is currently producing at a reduced rate of approximately 7,500 barrels of oil per day, following some pump operational issues. There is a work programme planned for 2014 to increase production back up to normal levels. Parkmead's increased interest in the field will provide the Company with significant growth in production revenues and operating cash flows.

The total consideration for the interest is US$11.2 million, which will be satisfied through $8.0 million in cash and $3.2 million in new Parkmead Shares (the number of shares issued will be calculated based on the closing price of a Parkmead Share on the business day immediately prior to completion).

The acquisition of the additional interest in the Athena field fits perfectly into Parkmead's strategy to become a key E&P player in the North Sea. The Group has been awarded a total of 30 blocks spanning eight licences across the UK, through the 27th Licensing Round, including high potential areas West of Scotland and West of Shetlands. In addition to increasing its stake in Athena, the Group continues to build its presence in the Central and Southern North Sea. Parkmead operates the Greater Perth oil area, and has built extensive acreage with a number of exploration prospects to add to the Platypus gas field and the recent gas discovery at Pharos.

Tom Cross, Executive Chairman of Parkmead, commented, 

 

"This is Parkmead's most important deal to date. Increasing our oil production three-fold from the Athena field will deliver major growth in the Company's revenue and cash flow."

           

 

Enquiries:

 

The Parkmead Group plc


Tom Cross (Executive Chairman)  

+44 (0) 1224 622200

Ryan Stroulger (Chief Financial Officer)  

+44 (0) 1224 622200



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


Marc Milmo 

+44 (0) 20 7149 6000

Karri Vuori   

+44 (0) 20 7149 6000

Carl Holmes                                                      

+44 (0) 20 7149 6000



College Hill Associates (PR Adviser to Parkmead)


David Simonson

+44 (0) 20 7457 2020

Alexandra Roper

+44 (0) 20 7457 2020

 

 

 

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 is focused on growth in 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 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 contain the large 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. 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 provides the Group 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, to be implemented by way of a Court-sanctioned Scheme of Arrangement (the "Scheme"). The Scheme became effective on the 9th August 2012. As a result, Parkmead now owns 52% and is operator of the UKCS Perth oil 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 was 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.

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

9.   In December 2013, in the second tranche of the UKCS' 27th Licensing Round, Parkmead was provisionally awarded a further five UK blocks through two new licences in the UK Southern North Sea.

10.  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.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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