Despite a sharp fall in crude oil prices, Parkmead, the Aberdeen-based independent oil and gas explorer, has slashed full year losses for 2015-16 to 30 June to £6.7 million from £31.4 million in the previous year.
The improvement reflected the end of production at Athena and the ramp-up in Dutch gas production driven by the start-up of Diever West.
Cash and net cash ended the year at £28.3 million (£29.6m at 31 December 2015), over £1m above estimates, leaving the company debt-free and well placed for further future acquisitions.
As a result of the deals which increased Parkmead’s interest in the Perth and Dolphin fields to 60.05% and gave it 100% interests in Polecat and Marten, 2P reserves increased to 27.9mmboe at 30 September, up 19% from YE15 while contingent resources increased by 41% to 59.1mmboe.
Faroe’s proposed withdrawal from the PDL project clears the way for Parkmead to assume full control and progress its development plans for the Sour Crescent.
City analyst Cantor Fitzgerald commented: “The Parkmead results are broadly in line with our forecasts, with the company being cash flow positive on an operating basis since January 2016.
“Six acquisitions, at both an asset and corporate level, have been completed, and the company continues to evaluate further acquisition opportunities to take advantage of the current low oil price environment.
“Operationally, it has been another year of strong progress in terms of the company building out its European footprint.”
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