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They know now how much of the farm they want to sell and how much to keep and develop.
I am hoping that plans are progressing for a huge wind farm a massive biomass plant and acres of new generation solar panels.
They certainly have the room for them!
I have to be optimistic that at some point a complete mix of energy production ( oil, gas, wind and solar power plus biomass will be the ultimate success story for T.C. and the team and of course for us!
GLA
BtB
Anyone know much about the costs and economics of windfarms?
Lots of variances dependent on location etc, but a little Googling brings up a few numbers.
Between 2 - 40 acres per MW required (in US).
3 big UK windfarms average 2.6MW per turbine (range 2.3-3).
A 3MW turbine cost (project cost) approx £2.3m, lasts 20-25 years. O&M approx £86K pa.
A single turbine can generate itro £660K pa income for the developer. Farmer who rents the land to them gets £72K pa.
IRR of approx 13% for a 3MW with average wind speed 7m/s.
Good money.
Crunching the numbers a little bit more...
Reading the property description, the farm building itself is a two bed single story farmhouse with sheds. There's a further farmhouse "in need of renovation" to the North. So probably worth very very little intrinsically in comparison to the land itself - i.e. value of the buildings is nothing.
In which case PMG bought 2,320 acres for £8.5m or £3,664 per acre.
They're selling 1,080 acres for (hopefully more than) £4.82m, or £4,463 per acre (a 21.8% gain potentially).
If you put a value on the farm buildings themselves of say £250K (which feels a lot for what they are), then it would still be a gain of 19% on the land.
As a shareholder I'll be quite happy with that if they get it away.
Of course, that leaves PMG with 1,240 acres which, valued at the same price they're hoping to sell at (£4,463/acre), would be £5.5m - valued as agricultural land rather than a wind farm/solar. Maybe it's worth less as agricultural land on the top of a hill? But presumably much more as a wind farm.
Lot 3 alone (150 acres, no buildings) is offers over £680K, or £4533/acre.
Lot 2 is 120 acres, no buildings - offers over £790K or £6,583/acre.
Lot 1 (811 acres, with all the buildings/sheds) - offers over £3.35m or £4,130/acre, so quite a variation.
PMG bought Pitreadie (2,320 acres).
Tipperty Farm for sale now with 1,081 acres across the 3 lots.
So they are hanging on to 1,239 acres.
That's a lot of windmills and solar... ;-)
Parkmead only wanted the high ground (top of Hill ) of Tipperty farm for wind turbines.
They paid a very good price to secure the purchase and like any good business deal the price of the land has increased since the deal 2 years ago.
I understand the controversial farm purchase by PMG from TCs wife is now up for sale again. Tipperty laurencekirk? Any one know about this?
Thanks
we will definitely see more bankruptcies due to the heavy debt level (mainly in the USA). Oil & Gas companies have been very aggressive recently and will pay their prices.
With regards to the industry, Oil & Gas is definitely out of favor but transition to new technologies will take much longer than people expect (still, it will slowly happen). We should not forget that it is a very capital intensive and slow moving project. COVID crises have already loaded up the Govs with even more debt and the transition like this might be postponed or slowed down at least. There are "survival" priorities on the table.
Nice little reminder of where PMG is thank Axe. The TC empire is frustrating, my basis is continued investment is knowing if PMG falls over, TC et al. will have lost a lot more than me... Really, sounds harsh, but true, PMGs approach fells almost like Buffets, keep cash on sidelines and wait for this huge debt bubble to blow. Come the dip I genuinely thought Premier Oil was about to go caput (kicking myself for not buying more on the dip)... this would have put PMG in prime position for North Sea recovery (which will absolutely happen in some form). I am one whom believes many heavily indebted oil gas companies time will come soon (poss Sept) many will have to be nationalised (UK and USA) for national security reasons, who will be best placed to manage the fields and projects PMG? Lets see if this debt driven approach still lasts into the near future. A hydrogen future is also not considered at all... what do you need to produce hydrogen...a lot of natural gas! Interested to hear your opinion? GL
missed last sentence from the article:
... He has now returned to Parkmead, from Apache, and will take GPA through to project sanction, which is slated for spring or summer next year.
It is not the first and not the last cycle. While the management style is far from being ideal, Parkmead has a strong potential + good assets. Perth will eventually be developed. Partners from nearby platforms are interested too. Based on recent Wood Mac asset report, the breakeven price for Perth (opex + all capex) is below $30 (Normal for North Sea). Parkmead will also benefit from accumulated ring-fenced tax losses. The most important factor is timing. It is always difficult to figure out the best entry time. People talk about Serica that they have done well but nobody mentions that it was on the edge in 2014/15. Serica situation was really bad (little cash, high burn rate and no producing assets). Where is it now? Parkmead will become a buyout target. It is a good consolidation platform for a Private Equity Fund...
Interest from buyers in energy firm inevitable’
Keith Findlay
16 November 2019
The Press and Journal
Energy firm Parkmead Group will inevitably show up on the radars of prospective buyers if its current growth path continues, its boss said yesterday.
Executive chairman Tom Cross said the Aberdeen firm’s upcoming UK North Sea projects would prove the firm is “high quality”.
But he also said his team would not worry about potential partnerships and takeovers, and was focused on driving the company up the “value curve”.
Mr Cross built up Dana Petroleum into a successful exploration company before it was bought out by South Korea’s national oil firm in a hostile takeover in 2010.
The businessman collected more than £34 million from the sale of his stake, earning a reputation for being the North Sea’s “man with the Midas touch”.
Since then, he has led London-listed Parkmead, which he described as “Dana Mach 2, but stronger”.
He has a chart in his office comparing Parkmead’s growth to that of Dana in its early years.
Mr Cross said Parkmead was “tracking nicely” and “better balanced” than Dana, which sold for £1.7 billion.
Parkmead is focused on production from its “backyards” in the UK and Netherlands, whereas Dana operated out of nine countries.
Mr Cross also feels Parkmead, whose full-year results show rising revenues and a return to the black, is well-placed to thrive as the energy transition gathers pace.
For the past three years, Parkmead has only produced gas, which is a cleaner fuel than oil.
Another green touch recently saw it snap up £4.9m worth of Aberdeenshire farmland which had been majority-owned by Mr Cross’ wife.
Parkmead does have large North Sea oil projects in its portfolio and is determined to bring them to fruition.
With that in mind, the firm has hired its first dedicated North Sea managing director to spearhead those developments.
Tim Coxe had a stint working for Parkmead on the early stages of its Greater Perth Area (GPA) project in the outer Moray Firth a few years ago.
He has now returned to Parkmead, from Apache, and will take GPA through to project sanction, which is slated for spring or
Bandit1 : Take it or leave it, you chose to leave . Oil companies are currently in turmoil .Parkmead have cash
Don't see a problem really. Jog are in the same boat yet there timeline is 5 years away. Longboat energy ex Faroe petroleum Graham Stewart says he's looking for deals
It's like a round of golf Never Give Up !
SOTB - hope you are well and holding up despite the tough times in the sector. As you know I look in here from time to time despite being chased away by your good self and Neil Hannon I think it was, some 18 months ago when I sold out totally disillusioned with Tom Cross. It seems that on this occasion I was right to be concerned about his abject failure in connecting with private investors such that many have lost faith and moved on. The lack of interest on here appears to be a reflection of his autocratic style which is failing badly. You may recall that I called into question the blind faith of loyal followers some time ago. I am curious to know what is it that keeps you here despite pretty dire performance? I will be back up in the Moray Firth area after lockdown talking to my contacts, who were of the opinion in 2019 that Cross had lost focus which was a sign to exit. Is there any value in PMG from here?
A ‘huge’ multi-billion pound investment opportunity has opened up with the launch of Scotland’s first offshore wind leasing round in a decade, the country’s seabed regulator has claimed.
Crown Estate Scotland, who manages Scottish seabed leasing for renewable energy, has today announced the first stage of the ScotWind offshore wind leasing round.
It claims total investment in Scottish projects could surpass £8 billion.
From today, investors and developers will be able to register interest in obtaining an ‘option agreement’ with Crown Estate Scotland.
Scotland’s energy minister, Paul Wheelhouse, described the move as a “pivotal moment” in the development of the country’s offshore wind sector and an opportunity to help develop a response to the Covid-19 pandemic.
Yes if Tom didn't know strategy then would be knackered here. Has he properly communicated that no? Every other company I own incl. oil gas have RNSd a post covid update stating what has/hasn't changed. My opinion. If you are TC happy to hear your thoughts ppt here
GrdianAngel:Oil will come out of the ground when the price dictates.what kind of update do u want ? BP laying off 10,000 personnel. PMG work force but a mere fraction of this.
There is oil gas wind and bio energy all incorporated into Parkmeads portfolio.
Tom knows the strategy !
As much as I am patient, I think that TC needs to have hard convo with his major shareholders aka himself and his wife, and update on what strategy is going forward. PMG genuinely needs to have a nay or yay decision on whether oil will leave ground (gas of course different kettle of fish) and write off oil reserves (market has done this for him already). Need an update on strategy post covid asap... unfortunately no one in the board room demanding this of him
I'm sure he's looking at deals there has to be an abundance ....Forecast for the next few months in the North Sea looking bleak. Projects on hold Rigs stacked roll on 2021
It’s a shame to see the PMG decline, I was invested here years ago and Tom made me great money, is PMG worth a punt now,? surely TC is still massively invested, probably well down and wants a return....
Is he still a guy worth backing ?
My guess would be the persistent large sells that have been going on for a few weeks and investors won't touch this until positive news is announced, why invest here today an miss out on the current market rise with all other stocks! Every dog has its day, even mongrels, patience!!!
Brent prices have recovered significantly and while PMG's income is from gas they are also an oil play yet the sp has stalled at 31p. Any views as to why the sp has not bounced back a bit?
Would imagine tidying up the paper work.
Philip Dayer been paid a wad of shares for putting together a package let's hope it's for GPA !
https://www.proactiveinvestors.co.uk/companies/news/221749/if-the-north-sea-is-revitalised-what-are-the-best-options-for-investors-221749.html
Enquest up 25% on an RNS operational update. Please tell me that one day it will be our turn?
Not sure it is correct as to what is attributed to Tom Cross re. platypus and the O.G..A. “Prioritising” work. This is from the O.G.A. by the operators Dana Petroleum.
“ Platypus Sanction was expected in Q2 2020 which is under review as we are assessing the impact of COVID-19 and the general industry economic situation. A further update will be published once we have a clearer picture of how we intend to move forward”
GLA.
Has to be !
The UK North Sea oil and gas entrepreneur at the helm of Parkmead Group, Tom Cross, has confirmed key projects for the energy firm were making “significant” progress.
These include the Greater Perth Area (GPA) development in the central North Sea and the Platypus gas project in the southern sector.
Mr Cross said Parkmead had a “proven way to get oil from Perth to the market” and he hoped to have a field development plan (FDP) submitted to the industry regulator later this year.
Speaking from his Aberdeen home after Granite City-based Parkmead posted first-half results, Mr Cross said a tie-back of GPA to the nearby Scott facilities, operated by CNOOC, and export via the Forties pipeline was a “complete technical solution” for a project targeting up to 130 million barrels of oil equivalent (boe), in “probable” resource terms.
Parkmead is also looking at ways to “sweep up” other pools of oil in the area, Mr Cross added.
The company submitted its FDP for Playtypus last October, hoping for project sanction by July and start-up for an estimated 4,600 boe per day next year.
But Covid-19 has forced the Oil and Gas Authority to prioritise its workload and the Platypus timetable is likely to slip.
He said Parkmead was operationally profitable during the six months to December 31, but a £1.3m write-down linked to the disposal of non-core acreage pushed statutory earnings into the red. Pre-tax losses came in at £1.4m, against profits of £3.8m a year ago, while lower gas prices drove a near 60% drop in revenue to £2.1m.