Posted: 16/11/18

Parkmead, the UK and Netherlands focused independent energy group, is pleased to report its preliminary results for the year ended 30 June 2018.

 

HIGHLIGHTS 

 

Parkmead increases revenue by 70% and more than trebles gross profit

 

• Revenue increased by 70% to £7.0 million (2017: £4.1 million)
• Gross profit for the period of £4.1 million (2017: £1.2 million), an increase of 242% 
• Strong total asset base of £78.9 million at 30 June 2018
• Parkmead remains debt-free
• Well capitalised, with cash balances of US$31.0 million (£23.8 million) as at 30 June 2018
• Maintains strict financial discipline 
• Low-cost Netherlands gas production provides positive cash flow to Parkmead
• All revenues from Netherlands production received and held in Euros 

 

Achieved a record new high in gas production

 

• Production at the Diever West gas field was enhanced, and achieved a new gross average monthly high in May 2018 of 56.9 million cubic feet per day (“MMscfd”). This equates to approximately 9,787 barrels of oil equivalent per day (“boepd”)
• A change in production tubing was successfully completed on the field, leading to increased potential from the two perforated intervals
• Dynamic reservoir modelling suggests Diever West holds approximately 108 billion cubic feet (“Bcf”) of gas-in-place, more than double the previous post-drill static volume estimate of 41 Bcf
• Low-cost onshore gas portfolio in the Netherlands produces from four separate gas fields with an average operating cost of just US$15.6 per barrel of oil equivalent, generating positive cash flows 
• Further production enhancement work is planned on Parkmead’s Netherlands portfolio, including a new well at the Geesbrug gas field to maximise production, plus development scenario analysis at the Ottoland oil and gas discovery 

 

Major progress on valuable oil development; potential Greater Perth Area tie-back

 

• Significantly increased equity in the Perth and Dolphin oil fields in the UK Central North Sea, which lie at the core of Parkmead’s Greater Perth Area (“GPA”) oil hub project
• Increased equity in the Perth and Dolphin fields raises Parkmead’s 2P reserves to 46.3 million barrels of oil equivalent (“MMBoe”)
• Parkmead now in full control of the GPA project, with operatorship and 100% equity  
• Agreed with Nexen Petroleum, a subsidiary of China National Offshore Oil Corporation (CNOOC), to undertake a detailed engineering study for the potential subsea tie-back of the GPA project to the Nexen-operated Scott facilities in the Central North Sea
• Engineering study confirmed the technical feasibility of a tie-back of the GPA project to the Scott facilities
• Parkmead has entered into commercial discussions with the Scott field partnership in order to explore terms for a tie-back of GPA to Scott 
• Nexen’s Scott facilities lie just 10km southeast of Parkmead’s GPA project 
• New GPA reservoir study concluded that stimulating the Claymore formation would result in a considerable increase in well productivity and is likely to increase the project’s oil recovery factor

 

   Substantial increase in oil and gas reserves and resources

 

• Net 2P reserves increased by 67% to 46.3 MMBoe as at 30 September 2018 (27.7 MMBoe as at 30 September 2017) 
• Net 2C resources of 101.8 MMBoe, a 64% increase from Parkmead’s 30 September 2017 resources position of 62.0 MMBoe 

 

Awarded nine new UK oil and gas blocks in 30th Licensing Round

 

• Awarded nine new UK oil and gas blocks and part blocks spanning five new licences in the 30th Licensing Round
• These blocks contain a range of new exploration prospects and a number of proven discoveries such as the Lowlander field
• The newly awarded licences will all be operated by Parkmead and are located in the Central North Sea, Southern North Sea and West of Shetland areas

 

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

 

 

Parkmead’s Executive Chairman, Tom Cross, commented:

 

“I am pleased to report an excellent year of progress for Parkmead. The Group has increased revenue by 70% and more than trebled its gross profit, as a result of enhancing its gas production in the Netherlands. This is an outstanding achievement, creating a strong foundation from which to build momentum. 

 

Parkmead benefits from increasing balance within the Group, with four complementary areas of the business: Netherlands Gas, UK Oil and Gas, 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 increased production at the Diever West gas field, which bolsters Parkmead’s cash flow. The latest reservoir modelling indicates that Diever West could be more than double the size originally expected.

 

We are also pleased with the major advances made with the Greater Perth Area project. By increasing our stake in the Perth and Dolphin oil fields, Parkmead’s oil and gas reserves have grown by some 67%. 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 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)

 

Panmure Gordon (UK) Limited

(Financial Adviser, NOMAD and Corporate

Broker to Parkmead)+44 (0) 20 7886 2500

Dominic Morley

Atholl Tweedie

 

Instinctif Partners Limited (PR Adviser to 

Parkmead)+44 (0) 20 7457 2020

David Simonson

George Yeomans

 

 

For full details, please see the pdf version of the announcement here