Parkmead, the Aberdeen-based independent oil and gas explorer, has doubled its stake in the Polecat and Marten oil fields in the North Sea.
It has acquired a further 50% of Licence P.2218 from Atlantic Petroleum for an undisclosed price and now operates the licence with 100% equity.
Parkmead initially secured its first 50% interest in these blocks as part of the UK 28th Licensing Round awards, in which it won a total of nine new oil and gas licences covering 12 offshore blocks.
The Polecat and Marten fields lie approximately 12 miles east of the significant Buzzard field, and are located close to Parkmead’s large Perth-Dolphin-Lowlander (PDL) hub project in the prolific Moray Firth area of the Central North Sea.
Polecat and Marten could be highly valuable to Parkmead as, given their close proximity to PDL, they could be jointly developed as part of the Greater PDL Area project.
Polecat and Marten are two sizeable existing Buzzard sandstone oil accumulations, which are estimated to jointly hold over 90 million barrels of oil in place and over 33 million barrels of contingent resources.
Through this acquisition, Parkmead has increased total contingent resources by 39%, from 42.5 to 59.1 million barrels of oil equivalent.
Polecat was discovered in 2005 and appraised in 2010. The 2010 appraisal well was flow tested at 4,373 barrels per day of good quality 32° API oil. The Marten discovery was made in 1984, encountering three oil bearing sandstones of Upper Buzzard age. Parkmead benefits from the large amount of existing data on the block, gathered as a result of wells already drilled in the area.
Meanwhile, Parkmead’s Diever West gas field – located onshore in the Netherlands – continues to perform above expectations and gross production in July 2016 averaged 34 million cubic feet per day (approximately 5,850 barrels of oil equivalent per day).
Parkmead worked closely with its joint venture partners on the fast-track development of Diever West, and the partnership successfully brought the field onstream within just 14 months of discovery.
The profitable gas production from Diever West, and Parkmead’s wider portfolio of gas fields in the Netherlands, provides important cash flow to the group. The company’s low-cost onshore portfolio in the Netherlands produces gas from four separate fields with a very low average operating cost of just $14-barrel of oil-equivalent.
Tom Cross, Executive Chairman, commented: “We’re delighted with the continued outperformance of the Diever West gas field, which has been producing at stable rates of around 30 million cubic feet per day since coming onstream – significantly ahead of expectations.”
A number of enhanced production opportunities have been identified within Parkmead’s existing Netherlands portfolio, which the Group intends to capitalise on with the aim of further increasing its net gas production.
Parkmead’s gas production in the Netherlands serves as a natural hedge to low and volatile oil prices.