Parkmead Group (AIM:PMG) boss Tom Cross confirmed he is “in discussions” over the sale of the firm’s North Sea assets as the energy group turns its focus to renewables and international markets.
Cross, who is well known for building and then selling Dana Petroleum to the Korea National Oil Corporation for £1.6 billion, said the firm’s UK offshore portfolio of oil licenses offers buyers a “valuable long term asset” and a “UK ring fence tax loss pool”.
North Sea assets include a 50% stake in a licence P2536 in the the Fynn Beauly discovery, along with Orcadian Energy (AIM:ORCA) which it picked up in the recent 33rd licencing round led by the North Sea Transition Authority (NSTA).
Parkmead said Fynn Beauly accumulation offered gross resources of 292mmboe.
The firm is also operator of the Skerryvore prospect in which it holds 50%.
Cross said the company has “delivered another year of strong operational results” earning over four pence per share.
He added: “As set out at the time of the interims, Parkmead has a valuable long term asset in its UK offshore oil licences and its UK ring fence tax loss pool. The company is in ongoing discussions as it seeks to deliver shareholder value from this asset.
“The group’s robust financial position provides Parkmead with a distinct advantage as we seek to further enhance shareholder value through acquisition opportunities across the group.”
The firm also highlighted production growth in its Dutch North Sea assets.
It is also looking to grow its UK onshore wind portfolio.
Cross noted the firm “welcomed the removal of the de facto ban on onshore wind energy developments across England which may unlock a range of investment opportunities”.
It said its Kempstone Hill farm had produced revenues of £600,000 in the period – down slightly from £700,000 in 2023 as increased electricity generation were offset by lower electricity prices. Cross acquired the three-turbine site near Stonehaven in a deal £3.2m deal in 2022.
It also reiterated it is in discussions with a “major European renewable energy developer” for its potential 100MW wind farm at Pitreadie near Banchory.
Pointing to an after-tax profit £4.9 million for 2024, compared to a £42.3m loss in the prior year, the firm said it had enjoyed increased operational output across the portfolio and a “material reduction in tax liabilities”.
It further added it has “healthy” cash reserves of £9.5m which it said offers “appropriate financial flexibility to pursue further investment opportunities”.
Recommended for you
