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LONDON (Alliance News) - Parkmead Group said Friday that full-year revenue was up 38% to GBP4.1 million after the firm increased its reserve base and added to its portfolio during the period.
In its preliminary results for the year to June 30 2013, Parkmead said total assets grew 133% to GBP53.4 million from GBP22.9 million in 2012, driven by gas production from the company's Netherlands portfolio. Net oil and gas production grew by around 400%.
Despite this, the firm reported a pretax loss of GBP5.6 million, up on the GBP4.9 million reported last year. Administrative costs rose to GBP7.7 million from GBP5.5 million, with Parkmead's operating loss for the year reaching GBP5.1 million, up GBP400,000 on 2012 figures. The total comprehensive full-year loss was GBP6.9 million, up from GBP5.1 million for the comparable period last year.
As of June 30 this year, the firm had a cash balance of GBP13.3 million. Parkmead raised approximately GBP15.925 million in January 2013 in order to provide finance for further growth. The company is currently in advanced discussions with lenders regarding debt facilities to increase financial firepower to support the business going forward.
The firm drew GBP2 million from its shareholder loan facility during the period, following the debt for equity conversion. In its preliminary results Parkmead said it is not recommending the payment of a dividend in 2013, due to its ongoing growth and investment plans. Looking ahead, the firm said that it will retain its appetite for acquisitions as it seeks to add shareholder value through its interests.
During the year Parkmead has won major licence awards in the UKCS 27th Licencing Round, gaining stakes in 25 blocks across the Central North Sea, West of Scotland and West of Shetlands. The firm has accelerated work on the high-impact Skerryvore oil prospect in the UK Central North Sea and has recorded a successful first appraisal well at the UK Platypus field, flowing 27 million cubic feet of gas per day. Development preparation for the Platypus field is already underway, said Parkmead, adding that exploration drilling is currently in progress at the Pharos gas prospect, just 14 kilometres from the Platypus field.
The firm has completed a number of acquisitions during the period which have benefited the business in various ways. Parkmead said that the acquisition of Lochard Energy Group substantially increased its production, revenue and cash flow figures; the DEO Petroleum acquisition added significant oil reserves in the North Sea area; and the addition of a portfolio of Netherlands assets Dyas B.V. comprised of four producing gas fields and two oil and gas developments.
Parkmead said it continues to progress in the Greater Perth Area and is currently evaluating the potential joint development of the Perth and Lowlander oil fields.
Parkmead's Executive Chairman, Tom Cross said, "I am pleased to report excellent progress in the year to 30 June 2013. Parkmead has significantly increased its reserve base and also added production to the Group's portfolio, providing first cash flow from E&P operations.These key achievements have been delivered through the completion of three important acquisitions, securing two oil companies in the UK and a portfolio of gas and oil fields in the Netherlands. Parkmead has created a strong platform from which to become a key E&P player in the North Sea, and we look forward to updating shareholders as we continue to grow into 2014 and beyond."
Shares in Parkmead Group were trading at 13.25 pence, down 3.6% Friday morning.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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