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(Sharecast News) - Independent energy group Parkmead has been provisionally awarded three new offshore blocks by the North Sea Transition Authority (NSTA) in tranche two of the UK's 33rd Licensing Round.
The AIM-traded firm said it was granted a licence covering blocks 14/15a, 14/20d, and 15/11a in the Central North Sea.
It would act as the operator and hold a 50% working interest, partnering with Orcadian Energy.
Within the new licence area were seven undeveloped oil discoveries situated in Mesozoic and Palaeozoic reservoirs, with the standout being Fynn Beauly.
Fynn Beauly represented one of the largest undeveloped oil accumulations in the UK, the board said, boasting estimated gross P50 contingent resources of 292 million barrels.
The substantial heavy oil discovery was strategically positioned between the well-established Claymore and Piper fields, spanning all three awarded blocks.
Moreover, it was estimated to hold an oil-in-place volume ranging between 740 million and 1.33 billion barrels.
The firm said the award was particularly noteworthy because the acreage encompassing the significant oil field had not been licensed to a single partner group before, paving the way for Parkmead and Orcadian to unlock the potential of the previously-untapped resource.
Of equal importance, it added, was the fact that the current licence commitment necessitated no significant capital expenditure.
The primary focus of the work programme would revolve around evaluating the feasibility of reducing Fynn Beauly's oil viscosity through enhanced oil recovery techniques.
That evaluation included exploring the potential utilisation of geothermal energy as a part of the recovery process, aiming to eliminate the need for injected hot water.
"This award demonstrates further success in Parkmead's strategy to identify value enhancing opportunities through lower risk developments, which are aligned with the NSTA's net zero strategy," said executive chairman Tom Cross.
"It also reaffirms Parkmead's status as a responsible and capable operator on the UKCS."
At 1222 GMT, shares in the Parkmead Group were down 3.19% at 16.22p.
Reporting by Josh White for Sharecast.com.