Completion of Acquisition of First Production

RNS Number : 5204J

Parkmead Group (The) PLC

08 August 2012

 



8 August 2012

The Parkmead Group plc

("Parkmead", "the Company" or "the Group")

Parkmead Completes Acquisition of Portfolio of Netherlands Onshore Assets

Parkmead, the independent oil and gas company, is pleased to report that it has completed the acquisition of a portfolio of Netherlands onshore assets (the "Assets") from Dyas B.V. for a total consideration of €7.5 million (the "Acquisition"), as previously announced on 8 March 2012, comprising interests in four producing gas fields and two oil fields. These Assets specifically comprise:

§ A 15 per cent interest in the Andel V Production Licence, including the two producing gas fields at Wijk en Aalburg and Brakel, as well as the Ottoland oil field development;

§ A 15 per cent interest in the Papekop Production Licence, including the Papekop oil field development; and

§ A 15 per cent interest in the Drenthe III Production Licence (excluding Vinkega) and the Drenthe IV Production Licence, which together include the two producing gas fields at Geesbrug and Grolloo.

The consideration for the Assets comprises an initial cash payment of €4.5 million for the acquisition of the interests and a contingent payment of €3 million, payable on the first commercial sale of oil from the Papekop field development.

The Acquisition of these assets marks a significant milestone for Parkmead by adding the first producing assets to the Group's portfolio.  At the effective date of the Acquisition, 1 January 2012, the Assets were producing at a rate of approximately 2,000 boepd, being 300 boepd net to Parkmead. As the Board of Parkmead looks to build a new independent oil and gas company on an accelerated basis, this Acquisition is of strategic importance with the Group entering production within one year of the oil and gas team being assembled at Parkmead.

In addition, the portfolio being acquired provides Parkmead with near term oil field developments at Ottoland and Papekop with the former forecast to come onstream in 2013. The recent successful extended well test performed on Ottoland during Q4 2011 produced oil at a stable rate from the existing single well on this accumulation. Analysis of the test results will allow optimisation of the development plan, including determination of the number of production wells required to efficiently drain the field.

Tom Cross, Executive Chairman of Parkmead, commented, "We are pleased to have secured stakes in these attractive licence areas that give Parkmead its first gas production and near term oil field developments." 

For enquiries please contact:

The Parkmead Group plc	01224 622200
Tom Cross, Executive Chairman
Donald MacKay, Chief Financial Officer
Kathryn Ramsay, Investor Relations
Charles Stanley Securities	020 7149 6000
Nominated Adviser & Broker
Marc Milmo
Carl Holmes
College Hill Associates	020 7457 2020
Nick Elwes

Notes to Editors: 

1.   Parkmead is an independent oil and gas company that is listed on AIM on the London Stock Exchange (symbol: PMG). Parkmead's primary focus is in the upstream oil and gas exploration and production sector, targeting transactions at both asset and corporate levels.

2.   In November 2011, Parkmead completed the acquisition of stakes in UK Blocks 48/1a, 47/5b and 48/1c containing the Platypus gas field, discovered in 2010, and the Possum gas prospect. The next well at Platypus is expected to start drilling in March 2012, and mapping indicates the potential for Platypus to contain up to 180 billion cubic feet of gas in place.

3.   In December 2011, Parkmead announced that it had signed an agreement to acquire stakes in blocks 47/4d, 47/5d, 47/10c and 48/6c in the UK Southern North Sea, which contain the large Pharos gas prospect. This structure has the potential to hold up to 500 billion cubic feet of gas in place. These two acquisitions have marked important steps in Parkmead's first stage of its development as a new independent energy company. This acquisition completed in February 2012.

4.   In May 2012, Parkmead announced that it had reached an agreement on the terms of a recommended acquisition of the entire issued and to be issued ordinary share capital of DEO by Parkmead. The acquisition will be implemented by way of a Court sanctioned Scheme of Arrangement under Part 26 of the Companies Act 2006 (the "Scheme").The Scheme Circular, containing the terms and conditions of the Scheme, was posted to DEO Shareholders on 25 June 2012. All resolutions were passed at the Court Meeting and General Meeting held on 18 July 2012 to approve the Scheme and associated matters. In order to become effective, the Scheme requires to be approved by the Court.  The Court Hearing seeking that approval is to be held on 8 August 2012.The Scheme is expected to become effective on 9 August 2012. DEO's principal asset is its interest in the Perth field in the UKCS. DEO owns 52% and is operator of the Perth Field. The Perth field is targeting Proven and Probable (2P) reserves of 21.5mmbls (net to DEO).

5.   Parkmead's capabilities have been significantly enhanced through the acquisition and integration of Aupec Limited ("Aupec").  As a result, going forward the Group plans to actively pursue investment and advisory opportunities throughout the North Sea, and internationally, using the combined capabilities of the enlarged Parkmead Group.

6.   Through its wholly owned subsidiary, Aupec, the Parkmead Group provides petroleum economics, benchmarking and valuation 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 and Aupec's website at www.aupec.com

7.   Following the Acquisition, the Co-Venturer's respective interests in the licences, are as shown below.

Parkmead (E&P) Ltd	15.00%
Northern Petroleum Nederland B.V. (operator)	45.00%
EBN	40.00%

 

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