Posted: 17/11/23

Parkmead, the independent energy group focused on growth through gas, oil and renewable energy projects, is pleased

to report its preliminary results for the year ended 30 June 2023.

 

HIGHLIGHTS

Increased revenues and cash flow

• Revenues increased by 22% to £14.77 million (2022: £12.13 million)
• Gross profit increased to £12.5 million (2022: £10.8 million)
• Gross margin remained strong at 85% demonstrating very low operating costs
• Net Cashflow from Operations rose 44% to £6.5 million (2022: £4.5 million)
• Operating profit before exploration write off and impairments of £10.6 million (2022: £6.9 million) or 9.7p on a per share basis
• Taxation of £4.7 million and Dutch windfall taxation of £2.4 million
• Cash and cash equivalents as at 30 June 2023 of £11.6 million (2022: £23.3 million) after decommissioning expenditure in the year of £17.0 million
• Non-cash impairment charges recorded of £46 million relating primarily to relinquishment of the Core Perth and Athena Licences on the UKCS
• Parkmead’s balance sheet remains strong with total assets as at 30 June 2023 of £28.6 million

 

Netherlands E&P Business – drilling success and excellent operating margin

• Low-cost onshore gas portfolio in the Netherlands produces from four separate gas fields, with a low average field operating costs generating strong cash flows
• Average netback for the year from the Netherlands of approximately $150 per boe
• Average gross production for the period across the Group’s Netherlands assets was 17.5 million cubic feet per day (“MMscfd”), approximately 3,015 barrels of oil equivalent per day (“boepd”)
• The LDS drilling campaign was completed safely, on time and under budget in early 2023
• LDS-01 successfully encountered commercial gas volumes which were tied into production within just a few months. A positive outcome, with higher gas & condensate production than expected, led to the well being temporarily shut-in for increased processing capacity work to be carried out
• Excellent progress on the potential Papekop development, targeting gross reserves of 35.6 bcf, with first production planned for 2027
• Major review of the exploration potential on the Drenthe VI licence has identified multiple new prospects

 

UK Skerryvore exploration well on track

• Parkmead is Operator with a significant 50% interest in the project
• Planned well will target the main stacked exploration prospects, at Mey and Chalk level (Tor Dip and Tor Strat), with Pmean STOIIP of approximately 43mmbbls, 98mmbls and 566mmbbls respectively
• The sub-surface team believe there is a high geological chance of success at the Mey of c.47% as this area is surrounded by fields producing from the same target interval
• Close to early-life infrastructure, giving potential for accelerated development

 

UK Renewable Energy Portfolio

• Kempstone Hill delivered record revenue during the period of £0.7millon
• Production of electricity during the period was 2,446 MWh
• Work is progressing on studies for a wind farm at Pitreadie as part of a major proposal to create a 90-100MW wind farm joint venture
• Through the relationship with Energy Management Associates, an area of land suitable for a large solar farm has been identified with Parkmead executing an option agreement over the proposed site
• The Group is also actively pursuing wind and solar acquisitions which would be immediately cash-flow enhancing for the Group

 

Well positioned for further acquisitions and opportunities

• Parkmead continues to pursue acquisitions in the gas, oil and renewable energy sectors that will build upon its balanced energy portfolio

 

Parkmead’s Executive Chairman, Tom Cross, commented:

“I am pleased to report Parkmead’s results for the financial year to 30 June 2023. We have achieved

increased revenues and cash flow, whilst ensuring the Company is forging ahead with new growth

opportunities.

The Netherlands assets have continued to deliver consistent and efficient gas production, with exciting

additional prospectivity identified across our Dutch portfolio. In particular, the maturing exploration

targets on the Drenthe VI licence confirms the high quality of these assets. The Papekop development

has the potential to add significant revenues to Parkmead from 2027 onwards.

Parkmead has achieved its first full year of revenue from the Kempstone Hill Wind Farm. This asset

complements the Group’s low-cost onshore gas operations in the Netherlands and strengthens our

balance sheet position. We will build upon the success of these two business areas, of natural gas and

renewables, through organic and inorganic growth as the Company transitions to being a clean energy

producer.

In addition, we remain committed to maximizing the opportunities within the Company’s oil & gas

portfolio on our pathway towards energy transition. We are excited by the progress being made on

Skerryvore towards drilling. There is major upside potential, given Parkmead’s high equity position in a

number of its prospects and the sizeable tax losses that could be deployed on the Company’s projects in

due course.

Parkmead continues to maintain a strong balance sheet which aids the pursuit of value-adding

acquisitions. Our team is working hard on the near-term opportunities that lie within our existing

portfolio, and is focused on the substantial value-creation that could be achieved for shareholders.”

 

For enquiries please contact:

 

The Parkmead Group plc                                                                      +44 (0) 1224 622200

Tom Cross (Executive Chairman)

Andrew Smith (Executive Director - Business Development)

 

Cavendish Capital Markets Limited                                                     +44 (0) 20 7220 0500

Marc Milmo / Seamus Fricker – Corporate Finance

Andrew Burdis / Barney Hayward – ECM

 

Please see the full statement, including financial statements, here. The file is also located in the financial reports section of the Company's website.