TIDMPMG
RNS Number : 1134P
Parkmead Group (The) PLC
24 May 2018
24 May 2018
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Parkmead awarded nine new UK oil and gas blocks
Diever West production reaches record new high
Parkmead, the UK and Netherlands-focused independent energy
group, is delighted to announce it has been provisionally awarded
nine offshore blocks and part blocks spanning five new licences in
the UK 30th Licensing Round.
These newly awarded licences will all be operated by Parkmead
and are located in the Central North Sea, Southern North Sea and
West of Shetland areas. Two of the new awards cover the highly
prospective Skerryvore area and contain seven new prospects, three
of which are stacked. The awards also include acreage containing
the Lowlander oil field, in close proximity to Parkmead's Greater
Perth Area ("GPA") oil hub project. The addition of Lowlander
increases Parkmead's 2C resources by 29% to 95.3 million barrels of
oil equivalent ("MMBoe").
These awards, which include a range of new exploration
prospects, in addition to a number of proven discoveries, follow on
from Parkmead securing nine new licences covering a total of 12
offshore blocks in the UK 28th Licensing Round awards.
Diever West gas production reaches record new high
Parkmead is also pleased to report that production at the Diever
West gas field in the Netherlands reached a new gross average
monthly high in April 2018 of 56.6 million cubic feet per day
("MMscfd"), which equates to approximately 7,833 barrels of oil
equivalent per day ("boepd"). After perforating the Akkrum
formation section of the field, almost quadrupling the perforated
reservoir interval, a change in tubing was successfully completed
on the field. This intervention has led to the well producing at
its full potential from the two perforated intervals.
The Diever West field has performed above expectations since
first production. New dynamic reservoir modelling suggests the
field holds approximately 108 billion cubic feet of gross
gas-in-place, this is more than double the earlier post-drill
static volume estimate of 41 billion cubic feet.
A number of further exploration opportunities exist within the
Drenthe VI concession, which contains the Diever West field. Two of
these are the Boergrup and De Mussels prospects, both of which have
stacked independent targets in the Vlieland and Rotliegendes
(Boergrup) and Rotliegendes and Carboniferous (De Mussels).
Tom Cross, Executive Chairman, commented:
"These significant new licence awards further increase the scale
of Parkmead's energy operations in the UK. The discoveries and
de-risked exploration prospects have the potential to add major
value to Parkmead.
We are delighted to have further increased production at the
Diever West gas field, which builds Parkmead's cash flow. New
reservoir modelling indicates that Diever West could be more than
double the size originally expected.
The team at Parkmead is working intensively to evaluate and
execute significant opportunities which could grow value and
provide additional upside to the Company. Parkmead is analysing
both oil and gas, and wider energy related opportunities, which
could broaden and enhance the Group's revenue stream."
30th Licensing Round awards
The following awards have been made to Parkmead and its joint
bidding groups:
Central North Sea
Parkmead has been awarded three licences in the Central North
Sea area.
Blocks 30/12c, 13c, 17h & 18c (Parkmead 30% and operator)
are situated in the prolific Central Graben. Four play fairways are
developed on this acreage providing six prospects. Significant
prospectivity on the blocks is mapped at Palaeocene Mey Sandstone
and Cretaceous Chalk level, with additional prospectivity
recognised within the deeper Jurassic Fulmar play. The Palaeocene
Mey and Chalk are proven productive reservoirs in the area by
fields and discoveries such as Joanne, Judy, Orion and Flyndre.
The Skerryvore Mey prospect overlies two stacked Chalk prospects
(Skerryvore Ekofisk and Skerryvore Tor) which are associated with a
Zechstein salt diapir called Skerryvore. The Chalk in these
prospects is thought to have been re-worked, which significantly
improves permeability over conventional Chalk reservoirs. These
three stacked prospects have the potential to contain 157 million
barrels of recoverable oil equivalent on a P50 basis.
An additional Paleocene Mey prospect (Skerryvore West) and one
Chalk prospect (Skerryvore North) are also identified on the
blocks. The proposed work programme includes shooting and
reprocessing 3D seismic and a contingent well. Parkmead's
co-venturers on the licence are Serica Energy, Zennor Petroleum and
CalEnergy Gas.
Block 30/19c (Parkmead 30% and operator) lies immediately to the
east of the Skerryvore blocks and contains Ruvaal, a Palaeocene Mey
combination structural and stratigraphic trap. The work programme
includes a drill or drop well. Parkmead's co-venturers on the
licence are Serica Energy, Zennor Petroleum and CalEnergy Gas.
Block 14/20f (Parkmead 100% and operator) is situated in the
Outer Moray Firth Basin and contains the Lowlander oil discovery.
Lowlander lies 17km north west of the Parkmead operated Perth field
which is at the centre of the Company's GPA oil hub project.
Lowlander is an Upper Jurassic Piper sandstone discovery, appraised
by five wells, and contains 2C oil resources of 21.4 million
barrels of recoverable oil on a P50 basis. The Lowlander field is
important to Parkmead because it could be developed as part of the
GPA project. The block also contains an Upper Jurassic turbidite
sandstone discovery, Midlander, to the north east of Lowlander that
could add to Parkmead's resource base in the area. The work
programme consists of obtaining 3D seismic and a drill or drop
well.
The addition of the Lowlander field increases Parkmead's 2C
resources by 29% to 95.3 MMBoe.
West of Shetland
Parkmead has been awarded one new licence adjacent to an
existing block that is already operated by the Group in the West of
Shetland area.
Block 205/12 (Parkmead 100% and operator) is situated in the
Faroe-Shetland Basin immediately to the west of the Parkmead
operated block 205/13, which contains the Sanda prospect. One large
prospect, Davaar, has been identified in Block 205/12 and is a
combination structural and stratigraphic trap in the Vaila
Formation. The Palaeocene Vaila Formation is the primary play
fairway on this acreage and forms the reservoir in the adjacent
Foinaven, Schiehallion and Loyal oil fields and the Laggan and
Tormore gas fields. Parkmead will undertake to reprocess the
existing legacy seismic with a new 3D seismic shoot, contingent on
the results, and a drill or drop well. Davaar has the potential to
contain 204 million barrels of recoverable oil on a P50 basis.
Southern North Sea
Parkmead has been awarded a new licence in the Southern Gas
Basin. This is an area where the Company has a deep technical
knowledge of exploration plays and is building a portfolio of
targets. Parkmead has already had significant success in the
Southern Gas Basin with the gas discovery at Platypus. The field
was subsequently appraised with a horizontal well and flow tested
at a rate of 27 MMscfd (approximately 4,600 boepd on an equivalent
basis).
Blocks 47/10d & 48/6d (Parkmead 75% and operator) contain
the Blackadder prospect and Teviot gas discovery. The Permian
Rotliegendes Sandstone is the primary play fairway on the acreage
and is proven productive by the numerous discoveries in the area
including West Sole, Hyde and Amethyst. The proposed award contains
a drill or drop work well. Parkmead's co-venturer on this licence
is Cluff Natural Resources.
Enquiries:
The Parkmead Group plc +44 (0) 1224 622200
Tom Cross (Executive Chairman)
Ryan Stroulger (Chief Financial Officer)
Panmure Gordon (UK) Limited (Financial
Adviser, NOMAD and Corporate Broker
to Parkmead) +44 (0) 20 7886 2500
Adam James
Atholl Tweedie
Instinctif Partners Limited (PR Adviser
to Parkmead) +44 (0) 20 7457 2020
David Simonson
George Yeomans
Catherine Wickman
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
Notes to Editors:
1. Dr Colin Percival, Parkmead's Technical Director, who holds a
First Class Honours Degree in Geology and a PhD in Sedimentology
and has over 35 years of experience in the oil and gas industry,
has reviewed and approved the technical information contained in
this announcement. Parkmead's evaluation of reserves and resources
was prepared in accordance with the 2007 Petroleum Resources
Management System prepared by the Oil and Gas Reserves Committee of
the Society of Petroleum Engineers and reviewed and jointly
sponsored by the World Petroleum Council, the American Association
of Petroleum Geologists and the Society of Petroleum Evaluation
Engineers.
2. Parkmead is an independent upstream oil and gas company that
is admitted to trading on AIM on the London Stock Exchange (symbol:
PMG). Parkmead is focused on growth in the oil and gas exploration
and production sector, targeting transactions at both asset and
corporate level.
3. In November 2015, Parkmead achieved first commercial gas
production from the Diever West gas field in the Netherlands.
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.
4. In August 2016, Parkmead doubled its stake in the Polecat and
Marten oil fields in the UK Central North Sea. The Polecat and
Marten fields are located in Blocks 20/3c & 20/4a within
Licence P.2218 and Parkmead now operates the licence with 100%
equity.
5. In September 2016, Parkmead increased its stake in the Perth
and Dolphin oil fields in the UK Central North Sea to 60.05 per
cent. The Perth and Dolphin fields, which are both operated by
Parkmead, are at the core of Parkmead's major Greater Perth Area
oil hub project.
6. In April 2017, Parkmead significantly increased its stake in
the major Sanda North and Sanda South prospects in the West of
Shetland area of the UK North Sea. Through this accretive step,
Parkmead increased its equity in the licence from 56% to 100%.
7. In May 2017, Parkmead announced that it had signed a Sale and
Purchase Agreement with Verus Petroleum (SNS) Limited to acquire a
50% interest in UK North Sea Licence P.2209 which contains the
Farne Extension prospect and a further four prospective leads.
8. In February 2018, Parkmead announced that it had increased
its equity in the Perth and Dolphin fields in the UK Central North
Sea from 60.05% to 100%. The Company also announced that it had
signed an agreement with Nexen Petroleum, a subsidiary of the China
National Offshore Oil Corporation (CNOOC), to conduct a engineering
study in relation to the potential tieback of the GPA project to
the Nexen operated Scott platform and facilities in the Central
North Sea.
9. Through its wholly owned subsidiary, Aupec Limited, The
Parkmead Group provides petroleum benchmarking and economics
expertise to a wide range of government bodies and international
oil and gas companies. Aupec has to date worked with over 100
governments, national oil companies, majors and independents across
the world, as well as a number of multi-national agencies such as
the European Commission and the World Bank. Aupec is currently
undertaking an important benchmarking project for a group of the
world's largest super-major oil companies.
For further information please refer to Parkmead's website at
www.parkmeadgroup.com
Glossary of key terms
boepd Barrels of oil equivalent per day
Bcf Billions of cubic feet of gas
-------------------------------------------------------
Contingent Resources Those quantities of petroleum estimated, as of
a given date, to be potentially recoverable from
known accumulations by application of development
projects but which are not currently considered
to be commercially recoverable due to one or
more contingencies. Contingent Resources are
a class of discovered recoverable resources
-------------------------------------------------------
Gas in place Is the total quantity of gas that is estimated
to exist originally in naturally occurring reservoirs
-------------------------------------------------------
Recoverable Those quantities of hydrocarbons that are estimated
resources to be producible from discovered or undiscovered
accumulations
-------------------------------------------------------
P50 Reflects a volume estimate that, assuming the
accumulation is developed, there is a 50% probability
that the quantities actually recovered will equal
or exceed the estimate. This is therefore a median
or best estimate case
-------------------------------------------------------
2C Denotes the best estimate scenario, or P50, of
Contingent Resources
-------------------------------------------------------
2P Those additional Reserves which analysis of geoscience
and engineering data indicate are less likely
to be recovered than Proved Reserves but more
certain to be recovered than Possible Reserves.
It is equally likely that actual remaining quantities
recovered will be greater than or less than the
sum of the estimated Proved plus Probable Reserves
(2P). In this context, when probabilistic methods
are used, there should be at least a 50 per cent.
probability that the actual quantities recovered
will equal or exceed the 2P estimate
-------------------------------------------------------
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London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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