Posted: 29/03/19

Parkmead, the UK and Netherlands-focused group, with four business areas, is pleased to report its interim results for the six-month period ended 31 December 2018. 

 

HIGHLIGHTS 

 

Major growth in revenue and profits

 

• Revenue increased by 95% to £5.3 million (2017: £2.7 million)
• Gross profit more than doubled for the period to £3.8 million (2017: £1.4 million), an increase of 181% 
• Net profit for the period of £2.2 million (2017: £4.5 million loss)
• Interim earnings per share of 2.23 pence (2017: loss per share of 4.57 pence)
• Parkmead is cash flow positive on an operating basis 
• Strong total asset base of £79.9 million at 31 December 2018 (2017: £75.8 million)
• Well capitalised, with cash balances of US$30.1 million (£23.6 million) as at 31 December 2018 (2017: £24.4 million)
• £6.2 million received post period-end from sale of the Group’s stake in Faroe Petroleum plc
• Maintained strict financial discipline
• Debt free
• Low-cost Netherlands gas production, plus benchmarking & economics consultancy, provides positive cash flow to Parkmead

 

Strong gas production achieved; multiple new opportunities identified

 

• Average gross production at Diever West for the six-month period was 48.1 million cubic feet per day (“MMscfd”), approximately 8,293 barrels of oil equivalent per day (“boepd”), a 54% increase on the average gross production for the six-month period ended 31 December 2017 of 31.2 MMscfd
• A change in production tubing successfully completed, leading to increased deliverability
• Excellent regional gas prices in the Netherlands during the period 
• Numerous exploration opportunities identified nearby Diever West, with similar characteristics
• Boergrup and Leemdijk prospects de-risked by nearby productive fields
• Dynamic reservoir modelling suggests Diever West has approximately 108 billion cubic feet (“Bcf”) of gas-in-place, more than double the post-drill static volume estimate of 41 Bcf
• Onshore gas portfolio in the Netherlands produces from four separate gas fields with an average operating cost of just US$12.3 per barrel of oil equivalent
• Further production enhancement work is planned on Parkmead’s Netherlands portfolio 

 

Progress on valuable development projects; potential Greater Perth Area tie-back

 

• Parkmead has entered into commercial discussions with the Scott field partnership, led by China National Offshore Oil Corporation (CNOOC) International, in order to explore terms for a tie-back of the Greater Perth Area (“GPA”) oil hub project to the Scott facilities
• A tie-back to Scott is one path to potentially unlock the substantial value of the GPA project
• Parkmead also holding discussions with a number of leading, internationally-renowned service companies in relation to the GPA project
• CNOOC’s Scott facilities lie approximately 10km southeast of Parkmead’s GPA project 
• Parkmead now in full control of the GPA oil hub project with operatorship and 100% equity  
• Platypus gas field joint venture partnership is optimising export route ahead of an offtake agreement, with various export options available
• First gas at Platypus targeted for 2021 at rates in excess of 50 MMscfd per day, with further potential upside from the Possum prospect
• Verbier appraisal drilling by Equinor could significantly increase the value of nearby oil and gas assets already owned by Parkmead, such as Polecat and Marten, given the available infrastructure options

 

37% increase in oil and gas resources 

 

• 2C resources increased by 37% to 100.9 million barrels of oil equivalent (“MMBoe”) as at 1 March 2019 (73.9 MMBoe as at 1 March 2018)
• Considerable 2P reserves of 46.0 MMBoe as at 1 March 2019 (46.3 MMBoe as at 1 March 2018) 

 

Well positioned for further acquisitions and opportunities

 

• Seven acquisitions, at both asset and corporate level, have been completed to date
• Parkmead is actively evaluating further growth opportunities, including wider energy-related opportunities

 

Parkmead’s Executive Chairman, Tom Cross, commented:

 

“I am pleased to report excellent progress in the six-month period to 31 December 2018. Parkmead has delivered major growth in its revenue and profits. This is an outstanding achievement, creating a strong foundation from which to build. 

 

Parkmead benefits from increasing balance within the Group, with four complementary areas of the business: Netherlands Gas, UK Oil and Gas, Performance Benchmarking and Economics, and Future Opportunities. The combination of these components adds strength and quality to Parkmead’s operations.

 

We are delighted to have significantly grown gas production at the Diever West field, which increases Parkmead’s cash flow.

 

We are also pleased with the major advances made within the Greater Perth Area project. The Group is in discussions with leading, international service companies and oil companies in relation to driving forward the GPA project.

 

The team at Parkmead is working intensively to evaluate and execute further value-adding opportunities, which could provide additional upside to the Company. These are primarily energy-related and include wider opportunities, which could broaden and enhance the Group’s asset base and revenue stream.

 

Parkmead is well positioned for the future. We have excellent UK and Netherlands regional expertise, significant cash resources, and a growing portfolio of high-quality assets. The Group will continue to build upon the inherent value in its existing interests with a balanced, acquisition-led growth strategy, securing opportunities that maximise long-term value for our shareholders.”

 

For enquiries please contact: 

 

The Parkmead Group plc+44 (0) 1224 622200

Tom Cross (Executive Chairman)

Ryan Stroulger (Chief Financial Officer)

 

 

Arden Partners plc

(Financial Adviser, NOMAD and Corporate Broker to Parkmead)+44 (0) 20 7614 5900

Ciaran Walsh

Maria Gomez de Olea

 

Instinctif Partners Limited (PR Adviser to Parkmead)+44 (0) 20 7457 2020

David Simonson

Sarah Hourahane

Dinara Shikhametova

 

For full details please see the pdf version of the announcement in the Financial Reports section here