Parkmead Group, the Aberdeen-based UK and Netherlands focused independent energy group made a gross profit for the year ended 30 June 2017 of £1.2 million compared to a loss of £4.6 million last year.
The Group has substantially increased production from its Diever West gas field to 39.3 million cubic feet per day, approximately 6,764 barrels of oil equivalent per day (“boepd”).
Low-cost onshore gas portfolio in the Netherlands produces from four separate gas fields with an average operating cost of just US$10 per barrel of oil equivalent, generating positive cash flows.
The group doubled stakes in the Polecat and Marten oil fields to 100% in the UK Central North Sea, which are jointly estimated to hold over 90 million barrels of oil in place and increased stakes in the Perth and Dolphin oil fields to 60.05%, building Parkmead’s oil reserves.
Parkmead’s Executive Chairman, Tom Cross, commented:
“2017 has been an important year of progress for Parkmead. The Group 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.
Parkmead’s gas production acts as a natural hedge in the challenging oil price environment.
We are delighted to have significantly increased production at the Diever West gas field, which increases Parkmead’s cash flow. New reservoir modelling indicates that Diever West could be more than double the size originally expected.
We are also pleased to have been able to increase our stakes in core areas of the Group’s portfolio during the year, particularly around the Greater Perth Area oil hub in the UK North Sea, where Parkmead has strengthened its position. The Group is in discussions with leading, international service companies and oil companies with regards to the Greater Perth Area.
The team at Parkmead is working intensively to evaluate and execute further value-adding opportunities which could provide additional cash flow to the Company. Parkmead is analysing both oil and gas, and wider energy sector opportunities, which could broaden and enhance the Group’s revenue stream.
Parkmead is well positioned for growth. We have excellent regional expertise, significant cash resources, and a growing, low-cost gas portfolio. The Group will continue to build upon the inherent value in its existing interests with a balanced, acquisition-led growth strategy, securing opportunities that maximise long-term value for our shareholders.”
