Parkmead Group said yesterday it had “significant” cash available to take advantage of lower oil prices and continue on the acquisition trail it has been on since 2011.
The Aberdeen-based oil and gas firm, led by north-east entrepreneur Tom Cross, has already pulled off six deals since a refocusing of the business four years ago. It was previously an investment and advisory firm.
Announcing first half results yesterday, Mr Cross said: “I am pleased to report significant progress in the period to December 31, 2014.
“Parkmead discovered a new onshore gas field at Diever West, in the Netherlands, which delivered excellent production flow rates, providing an additional near-term cash flow opportunity to the group.
“New licence awards in the 28th (UK offshore) round were an outstanding result for our company, with nine new offshore oil and gas blocks awarded to the group.
“We were delighted with the awards located close to our large PDL (Perth Dolphin Lowlander, central North Sea) development, as they have the potential to add significant value to the project. Contingent resources have increased by 142%.”
He added: “Parkmead is well positioned to take advantage of the lower oil price environment and the opportunities that are arising from this.
“We have significant cash resources and a growing low-cost gas portfolio. The group will continue with its licensing and acquisition-led growth strategy.”
Parkmead currently produces from four oil and gas fields in UK and Dutch waters, and holds interests in 61 exploration and production blocks across Europe.
It expects to treble its net gas production in the Netherlands this year, giving it a “natural hedge” to the lower oil prices.
The group generated first half revenue of £10.1million, against £9.9million in the same period in 2013, and it said the figure would have been bigger had it not been for the crude price collapse.
Pre-tax losses came in at just over £17million after a £12.9million impairment write-down for its 30% stake in the producing Athena oilfield in the Outer Moray Firth.
Parkmead said the value of its total assets grew by 34% to £109.6million, while a “strong cash position” meant it had £39.4million banked at the end of 2014.
The company also revealed it is currently evaluating potential acquisitions to “continue the group’s strong growth trajectory”.
Mr Cross, who was chief executive of Aberdeen firm Dana Petroleum around the time of its £1.67billion buyout by South Korea’s national oil company in 2010, said: “Our acquisition-led growth strategy has resulted in six deals for Parkmead since repositioning the business as an independent oil and gas company in 2011.
“We intend to build on this excellent track record.”
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