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(Sharecast News) - Independent energy firm Parkmead updated the market on its gas production following the successful start of production from the LDS-01 well in the fourth quarter of 2023.
The AIM-traded company said that, in line with previous announcements, the Diever-02 well was temporarily closed in October to facilitate the start of production at the newly discovered LDS-01 well.
Since coming online, LDS-01 had consistently delivered impressive gas production rates, averaging close to 5,000 barrels of oil equivalent per day gross and over 370 equivalent daily barrels net to Parkmead throughout November, December, and the current year.
Notably, Parkmead's net production from all Dutch gas assets had exceeded 430 equivalent daily barrels over the same period, marking the company's highest gas production levels since April 2020.
Gas production from LDS-01 had surpassed the predicted P50 gas reserves case, hinting at even greater potential.
A production plan would be disclosed in the near future to optimise the production from both LDS-01 and Diever-02.
The board said the success had both boosted dry gas production and contributed to a significant increase in gas condensate production from the wells.
Parkmead said its net condensate production had surged to more than 20 times its previous levels, promising a substantial addition to the net production figures reported above.
Additionally, Parkmead reported positive developments in production at its Geesbrug GSB-01 well.
Following a successful mini-coil clear-out in late 2023, production rates from GSB-01 had surged by about 50% percent compared to previous levels.
Despite its tight formation, Geesbrug remained one of Parkmead's most substantial producers outside of the prolific Drenthe VI concession.
Finally, looking at its UK renewables portfolio, the company said it had achieved outstanding operational uptime at its 100% owned Kempstone Hill wind energy company, resulting in strong revenue generation.
Commercial discussions with joint venture partners were progressing at Pitreadie, with additional studies, environmental surveys and planning work scheduled for 2024.
"We are delighted to confirm that the LDS-01 gas well has been brought onstream, on schedule and under budget, and that the early production data has demonstrated further reserves potential," said executive chairman Tom Cross.
"Parkmead's Dutch gas assets continue to yield successful discoveries and enhanced production from some of the most prolific onshore fields in the Netherlands.
"These fields perform exceptionally well with very low operating costs."
Cross said work was also progressing on the potential development of the Papekop gas field, targeting 35.6 billion cubic feet of gross gas reserves with first production as early as 2027.
"The upside value of these assets is further underlined by the recent prospectivity review carried out by the partnership, which has identified a number of exciting new leads and prospects which will be matured through a work programme in 2024."
At 1450 GMT, shares in the Parkmead Group were up 11.08% at 16.94p.
Reporting by Josh White for Sharecast.com.