Parkmead Acquires Stakes in Six Oil and Gas Fields and Achieves First Production
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."
For enquiries please contact:
The Parkmead Group plc
Tom Cross, Executive Chairman
Donald MacKay, Chief Financial Officer
Kathryn Ramsay, Investor Relations
Charles Stanley Securities
020 7149 6000
Nominated Adviser & Broker
College Hill Associates
020 7457 2020
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. 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.
5. 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.
6. Following the Acquisition, the Co-Venturers in the licences being acquired by Parkmead, and their respective interests, will be as shown below. Ernst & Young provided M&A advisory services to Dyas B.V.
Parkmead (E&P) Ltd
Northern Petroleum Nederland B.V.
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