Parkmead Summary Pt 130 Jul 2019 19:28
PMG Summary (and apologies in advance if it is too much info…!):
Tom Cross (TC) took on PMG after Dana was acquired. With the oil price crash the master plan faltered somewhat, but still remains in place – the big elephant being the Greater Perth Area (GPA) hub – a collection of previously discovered but undeveloped fields in the vicinity of the Nexen (CNOOC) operated Scott Platform (Perth is ~10km away).
TC has invested approx. £13.3m in PMG, at an average price of 70p/share, and holds ~19% of the company, and also some 9m in the money options with exercise prices of 35p and 41p. The finance director, Ryan Stroulger has invested some £250K at an average price of £1.56/share, and has approx. 420K options. Other directors also have stakes and options.
PMG raised £40m at 255p/share in 2014, and another £13.5m at 120p/share in 2015. As at 31st Dec 2018 they had cash of £23.6m and are cashflow positive on an operating basis due to the Dutch gas assets. They received £6.2m after 31st Dec as a result of the FPM acquisition, so perhaps £30m cash in the bank now, and no debt.
As at 31st Dec they had 46MMBoe 2P reserves and 100.9MMBoe 2C resources, almost all in the GPA.
They get some income (enough to make a profit last year) from Dutch gas fields – but these are a drop in the ocean compared with the potential of the oil licences and other gas licences they have acquired over a number of years.
Greater Perth Area (GPA) – they now have 100% of Perth, Dolphin, Lowlander, Polecat and Marten, as well as 30% of Athena which was producing but shut in in 2016 when the oil price crashed.
If the GPA is developed (and it is still an ‘if’ but it has been and is central to PMG’s strategy for many years) it will open access to:
1) Perth and Dolphin (PMG 100%) – discoveries, appraised by 17 wells, recoverable and contingent resources of approx. 104 MMBoe. Estimated 498MMBbls total oil in place for all of Perth field.
2) Lowlander (PMG 100%) - (a discovery, appraised by 5 wells, with 21.4 MMBoe 2C)
3) Polecat and Marten (PMG 100%) – Polecat discovered 2005, appraised 2010, appraisal well flowed at 4,373 bbls/day. Marten discovered 1984, three oil bearing sandstones. Together estimated 90MMBoe in place, and 33MMBoe 2C, close to Verbier (15% Jersey O&G) as an aside.
So approx. 160MMBoe 2P & 2C in discovered oil fields, 100% owned by PMG (currently!).
With a high probability that these figures will increase dependent on improved recovery rate - PMG undertook a study through AGR to model potential fracture stimulation of the above reservoirs, which concluded (at least to the extent that has been announced publicly to date) - “New GPA reservoir study concluded that stimulating the Claymore formation would result in a considerable increase in well productivity and is likely to increase the project's oil recovery factor”.
Continued in Pt 2....
Sign In
Follow the stocks
