Parkmead Acquires Stakes in Six Oil and Gas Fields and Achieves First Production

abarrelfullabarrelfull wrote on 24 Jun 2014 06:16

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8 March 2012

Parkmead, the independent oil and gas company, is pleased to announce that it has signed an agreement with Dyas B.V. to acquire a portfolio of Netherlands onshore assets (the “Assets”) for a total consideration of €7.5 million ( the “Acquisition”) 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. Completion of the Acquisition is subject to the usual partner and regulatory approvals.

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 later in 2012 or 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.

As Parkmead builds its operations in areas where its team is highly experienced, such as the UK and the Netherlands, today’s announcement which follows the Group’s two recent acquisitions in the UK Southern North Sea, highlights the accelerated growth plans of the Group.

Tom Cross, Executive Chairman of Parkmead, commented, “Parkmead is making excellent progress. This is our third acquisition in the last four months. In addition, we expect to start drilling our first well in the North Sea, at Platypus, this month and we are also far advanced with a number of applications for the ongoing UKCS 27th Licensing Round.”

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