The executive chairman of Scottish oil company Parkmead Group said yesterday it had a continued appetite for acquisitions and would look to add reserves through its drilling programme.
Tom Cross was speaking as the Aberdeen firm unveiled its annual results for the year to the end of June, which showed pre-tax losses had widened to £4.9million from £3.4million previously.
He said: “2012 has been an excellent first full year of E&P (exploration and production) operations for the Parkmead Group.
“Following a successful 2011, which saw the company bring together its experienced oil and gas team, the group has generated significant momentum completing a series of acquisitions in the North Sea and onshore Netherlands.
“Parkmead has built a high-quality and balanced portfolio, with a rapid growth in its reserve base, and since the financial year-end has achieved first production through the acquisition of assets in the Netherlands.
“In October 2012, the group was awarded interests in . . . 25 offshore blocks across the UK continental shelf, in the 27th licensing round.
“These new licences will significantly increase Parkmead’s asset base in the UK and complete what has been an exceptional year for the company.”
Mr Cross said there had been rapid growth in the group’s oil and gas reserves to 25.1million barrels of oil equivalent (mboe) of proven plus probable reserves and 10.3mboe of “2C contingent resources”.
He said acquisitions to date had focused on known opportunities in the group’s preferred area of Europe, and ranged from stakes in oil and gas fields in the UK continental shelf to a corporate transaction for Deo Petroleum, which completed in August.
Mr Cross added: “We believe that the group’s high level of activity makes clear both the drive and ambition of our company, and its staff, and creates a strong platform to become a key E&P player in the North Sea and beyond.”
The group’s revenue for the past financial year was £2.9million, against £3.7million previously, with operating losses increasing to £4.7million from £3.5million.
Shares in Parkmead closed 1.8% higher last night to 14p.