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steven49, the royalty acquisition included only 3 of the 4 fields, not Drenthe VI which is Diever and approx 80%+ of the NL production. That remains at 7.5% working interest.
The royalty on the other 3 fields was not disclosed to shareholders for years. All 4 fields were acquired from same previous owners, and to date I've been unable to find anything from PMG clearly stating that they have a 7.5% financial interest in Diever (rather than working interest). Hence the question mark over what their actual financial interest is. At best 7.5%, but could be less if there is an undisclosed royalty on that field too...
I am hoping there will be a positive drilling decision on Skerryvore sometime soon, and hopefully a deep pocketed partner racks up to manage it. It's explo and risky, but in the current environment one hopes someone else sees the potential. That could bring a decent % jump up.
I don't think anything interesting will be announced for GPA this year...if anyone was sniffing and interested it would already have happened.
At least one of the NL drills will happen, hopefully some concrete news about that very soon, which should se a small spike up too.
Wind farm application - nah.
Stop sponsoring the Scotland cricket team - nah.
TC pay rise - probably.
New options for them - yep, think there will be something by year end, or tabled for the AGM.
Applications for previous licenses (maybe Platypus) - yep....will they win any, maybe, but I doubt they will get Platypus having only just relinquished it...
Still think the SP will be north of here by year end. But not £1...
That's because it will take years before PMG start producing from any new projects, even if they can find suitable partners willing to work with them, which they have clearly struggled to do with GPA, Platypus, and well....TBH, every other project they have worked on....
They can't just drill a hole and turn the tap on by Christmas...hence the valuation.
Remember that PMG have never drilled a well as operator..
The only impact high O&G prices are having right now is increased short term cashflow from the four Netherlands wells....(which were once again reporting reduced production in the last published figures for June).
Spooky, I think I'm being stalked...someone replies almost immediately after every post I make, even at this time of night... The filtered list extends to several now, so not sure who it is...but irrespective...no, I don't believe it will be £1 by Christmas!
PMG have produced nothing in the UK since Athena was shut in in January 2016 - six and a half years ago....six and a half years of nothing...
Their only production is NL gas, riding on the coattails of Vermilion, since August 2012...10 years ago. And for most of those 10 years they hid the fact that they only had 7.5% of the revenue, rather than the 15% Working Interest they broadcast to all.
And of course the three windmills which produce enough to pay half of Tom Cross' salary each year...
Good luck to the believers!
PMG RNS from 2018:
"Southern North Sea
Parkmead has been awarded a new licence in the Southern Gas Basin. This is an area where the Company has a deep technical knowledge of exploration plays and is building a portfolio of targets. Parkmead has already had significant success in the Southern Gas Basin with the gas discovery at Platypus. The field was subsequently appraised with a horizontal well and flow tested at a rate of 27 MMscfd (approximately 4,600 boepd on an equivalent basis).
Blocks 47/10d & 48/6d (Parkmead 75% and operator) contain the Blackadder prospect and Teviot gas discovery. The Permian Rotliegendes Sandstone is the primary play fairway on the acreage and is proven productive by the numerous discoveries in the area including West Sole, Hyde and Amethyst. The proposed award contains a drill or drop work well. Parkmead’s co-venturer on this licence is Cluff Natural Resources."
Ho hum..
PMG's interests not nearby (thankfully), but an interesting article:
https://www.theguardian.com/world/2022/aug/22/fears-earthquakes-dutch-gas-field-energy-crisis
"Since when have PMG delivered on the assets/potential they have boasted about for years."
They haven't...not once. Much hype, broohaha and boasting, but delivery of no asset or project at all.
They've bought a farm (..still a farm...yawn), a small windfarm (OK, three turbines, hardly a windfarm), and Dutch gas fields, both developed by others.
They've bought and relinquished many, many licenses with zero result.
They sunk a lot of $$ into Athena - disaster.
The only thing still going for them is GPA, but after several years of trying to spruik that, they now have to resort to flogging it for whatever they can get through a third party.
Lots of cash raised, all gone...with nothing to see for it.
Several relatives have good jobs and TC has a very comfortable lifestyle on the £500K+ salary.
If it weren't for a war and resultant short term cash inflows there would be nothing of interest.
I suspect PMG will be no more in 2023, sold off in full to the highest bidder for GPA.....if they can find one...
L3Trader, Diever-02, the current producing well on the Diever field, took 18 days to drill, but another year before starting production. Diever-01 took about 7 weeks to drill, but that was back in the early 60's.
No idea what depth the LDS wells are in comparison to DIV-02, but I'd be estimating 3-4 weeks for drilling.
If they are confident, they'll have wellhead eqt on standby for the end of drilling, so could be quite fast.
Wind farm revenue (at least last year's) pays about half Tom's salary.
NL gas revenue is very healthy right now!
The trouble is AimOilking, PMG are not really a producer, they have a small stake in four gas wells in the Netherlands, producing less than 300 boepd. With the planned new drilling that may increase a little, but won't be significant.
They have potential (GPA & Skerryvore) but the reality is that it will be (many) years before they start producing from those - if they actually get over the line and start work on them, assuming they can find a partner.
So short term O&G price spikes are not really relevant.
If you want exposure to that you need to jump into current producers. Don't think I've ever spruiked another share on this board, but AET seems a good opportunity right now , DYOR etc etc.
Hindsight is a wonderful thing of course, but just imagine where they'd be now ...if only...
Originally posted March 2022:
"Hmm. I'm not wanting to talk the share down if that's the discussion....I just want them (PMG) to get on with it.
I try to report useful and factual posts about where they are (and dismiss the obvious BS and correct the misinformation when it crops up) - I have a large stake I want to see a decent return on. And that IMHO depends on them getting GPA across the line.
Skerryvore may get a drilling decision this year if they do what they say, but could be some time (years) before any drill starts twirling, and even then it's not a given that it'll find anything. We'll see.
I don't think PMG have actually been involved with a drill since 2013 - as 20% minority holder on Pharos - which was announced with much (somewhat ironic in hindsight) brouhaha:
"The discovery at Pharos is potentially valuable to Parkmead because, depending on the volume of gas in place, it could be jointly developed with the Platypus gas field, which is situated only 14km from the Pharos location. This would increase the value of the already economic development at Platypus. The Platypus gas field was discovered in 2010 and it was successfully appraised by Parkmead and its co-venturers with a horizontal well in 2012. Platypus was flow tested at a rate of 27 million cubic feet of gas per day (approximately 4,600 barrels of oil per day on an equivalent basis).
subsequently relinquished despite being a gas discovery. "
That all went well - Pharos was quietly relinquished some time ago, then Platypus too."
15% of 4600 boepd is more than double the NL production net to PMG.... oh well.
[To add..Still have a stake, but it's a free carry now. Not a pretty end to the day today...TTF still holding up so hope that is not due to some other news.. ]
BJoe, to add a little more detail on the history - originally posted April this year:
"PMG have not drilled a single well as operator since they were formed...
Since then they've also raised £78 million and gained another £6.2m when FPM were taken out. So where is that £84million now?
300boepd from the Netherlands, three windmills and a farm that belonged to TC's wife? And potential.
With much publicity and promise they have acquired multiple licences as operator, none of which have gone anywhere and many of which have been relinquished:
After TC became Chairman in 2010 the first annual report said "During November 2011, the Group completed its first acquisition in the UK North Sea in line with its philosophy of acquiring known properties, in this case the Platypus gas field and Possum gas prospect. The Parkmead technical and commercial experts have a long history and detailed knowledge of these assets making these an ideal first acquisition for the Group."
Hmm...
Platypus 15% (Dana operator) - discovery (flowed 27mcfpd) - relinquished.
Pharos 20% (Dana operator) - discovery - relinquished.
How many ££ sunk into Athena (10% -> 30%), was flowing 7.5K boed (and yet more to be sunk decommissioning?) - partly decommissioned.
NL assets acquired in 2012:
- 15% in Wijk en Aalburg producing field - shutdown.
- 15% in Ottoland oil field development, drilled, tested, due to come onstream 2012 - never happened.
- when acquired these fields (it did not include Diever then) were producing 2000 boepd, and PMG stated "300 boepd net to Parkmead". Strange that, since there was no mention of the royalty that effectively made it 150 boepd....and has been kept quiet for the last ten years. Incidentally, 300 boepd is what they are getting now, including the addition of Diever, which is 80% of the total production.
- 15% in Papekop - note that there is still €3m payable to Dyas if it ever gets drilled and flows...
- 7.5% of Diever - does anyone know if there is a 'hidden' royalty attached to that? When they bought out the royalty on the other three fields last year, they only stated that "The Drenthe VI licence, containing the large Diever West gas field, is not affected by THIS royalty." (My caps). Could there be a separate royalty for Diever, which was also a co-venture with NAM like the other fields...?
- In 2017 they said "including a new well at the Geesbrug gas field to maximise production and early development planning at the Ottoland discovery" - neither happened.
Lowlander - "The addition of Lowlander increases Parkmead’s 2C resources by 29% to 95.3 million barrels of oil equivalent (“MMBoe”)"- relinquished...
Polecat (50% -> 100%) - appraisal well (before PMG got it) flowed 4373 boed - relinquished...
Marten (50% ->100%) - discovery (before PMG got it) - relinquished...
Sanda North and South - relinquished...
Skerryvore - back in 2014 - "Skerryvore site ahead of the prospect being drilled in 2015.."
Originally posted Dec 2021:
PMG have minor interests in 4 fields:
Brakel - 15% (Vermilion 45%, EBN 40%)
Grolloo - 15% (Vermilion 45%, EBN 40%)
Geesbrug - 15% (Vermilion 45%, EBN 40%)
Diever West - 7.5% (Vermilion 52.5%, EBN 40%)
In rough numbers for 2021 each field contributed to their total volume approx:
Brakel - 7.9% (this the royalty was bought)
Grolloo - 0.9% (this the royalty was bought)
Geesbrug - 8.7% (this the royalty was bought)
Diever West - 82.6%
So Diever is by far the most significant field. Diever production has reduced from approx 8200 MMscf in 2017 to 5131 in 2021.
You can see what each of these fields produces each month here:
hxxps://www.nlog.nl/datacenter/brh-overview?lang=en
The production figures are updated monthly, so you can work out how much they have produced well ahead of when the results are announced.
September figure for Diever-02 - produced 14.75m Nm3 of gas and 97 M3 condensate, compared with 19.9m Nm3 + 117 M3 in Aug.
Brakel-01 down from 795K Nm3 to 216K Nm3 from Aug to Sept.
Geesbrug-01 up from 840K to 1.3m.
Grolloo-01 down from 535K to 347K.
So not really good news if wanting to make the most of the current gas price spike....
Also Dec 2021:
It just means that whilst they held a 15% working interest in the fields since 2012 when they acquired them, they were effectively paying 7.5% of that out as a royalty. Now they don't pay the royalty.
I haven't been able to find any references to this royalty in any of PMG's communications - certainly nothing in the original announcement when they bought them from Dyas. For 9 years they had been telling us they had 15%, which I guess is true, but pretty rubbish to hide the fact they were only receiving 7.5% of the revenue...
Originally posted Jan 2022:
The problem is, there have been 'so many things in the pipeline' for a decade, and none have come to fruition, which casts serious doubts on whether any will...
E.g. Linda Cross had Pitreadie in 2015, PMG bought it in August 2019. Two and half years later (or six and a half years depending on your point of view!) and there's still no sign of any planning application for the wind farm. If ever there is an application made, it is still many years away from a farm actually getting operational.
Every single project is the same: GPA (how many years now...? And of which Lowlander a major part now gone), Skerryvore (awarded 2018, no news yet), Playtpus (acquired 2011, now gone), Pharos (2011, gone), Spaniards (failure 2012), Athena disaster, Shetland (awarded 2015, one of the two now gone, silence on the remaining prospect), Polecat and Marten (gone), etc.
Whilst the potential is still there without doubt, there are serious questionmarks in my mind over whether any of it will actually come to fruition.
If it is the NL gas that is now center stage and the 'new trophy', then it's time to run for cover, the production rates are falling fast.
Originally posted August 2010 (in another place):
"Looks like I'm on my own here, and the spread is still ridiculous, but here's some thoughts on Parkmead Group (PMG):
A good place to start is here (which though over a year old, gives an idea of what they are about):
http://www.iii.co.uk/articles/articledisplay.jsp?article_id=10034142§ion=ShareDealing
Current situation is they hold 4,377,039 shares (2.51%) in Faroe Petroleum (FPM). At today’s bid that is worth £7.22m.
Net cash at end 2009 was £3.2m.
It also owns a company (Aupac, since end 2009) providing petroleum economics consultancy services, so presumably maybe even a little income.
PMG has 603,635,898 shares in issue. At today’s bid that is £7.55m
So looks like good value for money, and if nothing else, a little leverage in FPM with drill results about to come in from Anne Marie (which would have very significant effect if positive!).
Dana Petroleum (DNX) owns 27.5% of Faroe Petroleum .
Tom Cross (CEO of DNX) & spouse own approx 28% of Parkmead - largely through shares they acquired due to the takeover of Aupac, of which they owned 66%.
In June 2009, both Tom Cross & Colin Goodall (Parkmead Chairman, & also Chairman of DNX) put £100,000 each into Parkmead, buying on market at 1p/sh.
So has been a very poor show since it was formed (when SP was ITRO 9p), and it looks a bit of a one horse play on Faroe Petroleum....which could make it a little exciting in the near future...
... but I am wondering what comes next (when/if DNX gets taken out & Tom Cross is looking for something else to do)?"
...........
And so it transpired. Did very well out of that, and then actually shorted PMG when it all went a little OTT soon after TC joined - the only share I've ever shorted - did well out of that too.
Didn't buy back in for many years though - 2018.
Hope the wait will be worth it! GLA!!