The boss at Parkmead Group hailed an “excellent year of progress” as the firm added to its portfolio and narrowed its losses significantly in the 12 months to June 30.
Tom Cross, executive chairman at Aberdeen-based Parkmead, said a new licence it acquired west of Shetland in July 2015 could contain 280million barrels of recoverable oil.
Mr Cross said Parkmead geoscientists had begun seismic reprocessing work on block 205/13, which contains the Sanda North and Sanda South prospects.
He also said the London-listed firm continued to be in a strong financial position and was keen to add to recent acquisitions.
In September, Parkmead it announced an increase in its share of the Perth and Dolphin field licences in the Moray Firth area to 60.05% from 52.03% − with struggling Atlantic Petroleum reducing its stake.
A month earlier, Parkmead boosted its stakes in the central North Sea Polecat and Marten fields from 50% to 100%.
Parkmead enjoyed a 600% increase in production from its low-cost, onshore gas fields in the Netherlands during the 12 month period under review.
In November 2015, it managed to bring the Diever West field online in the Netherlands, just 14 months after its discovery.
Despite the jump in Dutch production, low oil prices did press down on Parkmead’s revenues, which fell to £10.4million from £18.6million in the previous 12 months.
But pre-tax losses narrowed to £6.4million from £30.8million, while cash balances sat at £28.3million as of June 30.
Parkmead shares were up 4.1% to 57p as on late morning today.
Mr Cross said: “Our reserves and resources have significantly increased in 2016 through two licence acquisitions. Parkmead has strengthened its position around the important PDL oil hub in the UK North Sea.
“Our new licence awards in the 28th Round were an outstanding result for Parkmead, with 10 new offshore oil and gas blocks awarded to the Group.
“We are delighted with the new award in the west of Shetland region targeting two prospects, Sanda North and Sanda South. West of Shetland is an area we understand well and has the potential to add major value to the Company.
“Parkmead is well positioned to take advantage of the ongoing lower oil price environment, and the opportunities that are arising from this. We have excellent regional expertise, significant cash resources, and a growing, low-cost gas portfolio.
“We will continue to build upon the inherent value in its existing interests with a licensing and acquisition-led growth strategy, securing opportunities that maximise long-term value for our shareholders.”
FinnCap analyst Dougie Youngson said: “Parkmead continues to expand its portfolio and its focus on gas in the Netherlands is yielding significant results. The North Sea portfolio continues to expand with new acreage west of Shetland and the company has identified a low cost development at the Platypus gas field.”
Recommended for you
