‘Going Dutch’ with low-cost onshore gas has fired Aberdeen-based oil minnow Parkmead into a milestone gross profit of £1.2 million in the year-ending June 2017 – compared to a £4.6 million loss in 2016.
Now debt-free, well-capitalised, with £26.4 million cash in the bank and with a net asset value of £68.9 million, Parkmead is scanning the market for future acquisitions – not just in the oil and gas sector, but also ‘at wider energy sector’ opportunities.
Tom Cross, Parkmead’s Executive Chairman, commented: “We have moved into gross profit as a result of increased gas production and the cost-reduction programme in the UK.
“This is an outstanding achievement for Parkmead at a time when global oil prices have remained low.
“Our Dutch gas production acts as a natural hedge in the challenging oil price environment and we are delighted to have significantly increased production at the Diever West gas field, which increases Parkmead’s cash flow.”
The new Diever West field has extremely low operating costs at around $6-barrel and new reservoir modelling indicates that Diever West could be more than double the size originally expected.
Parkmead’s other low-cost onshore gas fields in the Netherlands have an average operating cost of just $10 per barrel of oil equivalent.
Meanwhile, back at home, Parkmead doubled its stakes in the North Sea Polecat and Marten oil fields – which are jointly estimated to hold over 90 million barrels of oil in place – to 100% and increased stakes in the Perth and Dolphin oil fields to 60.05%, building Parkmead’s oil reserves.
It has received 13 combined bids from 35 supply-chain providers for the pre-FEED, FEED and subsequent development phases of the project of the Greater Perth area development.
Perth and Dolphin are located in the Moray Firth area of the North Sea, which contains very large oil fields such as Piper, Claymore and Tartan. Through a series of licensing round successes and strategic acquisitions, Parkmead has established a key position in this area.
20 Nov 2017