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Apologies - to correct myself(!) - actually the last AR says they have secured an extension to the Davaar licence and they "have begun interpretation of the newly reprocessed seismic data ahead of further work next year."
I can only imagine what is being spouted! But good to know the misinformation is being corrected.
Sanda North and South relinquished over a year ago (Feb 2021).
I think Davaar is up Oct next year - work program is:
Davaar P2406 Phase A is only to reprocess 202sqkm of 3D seismic & AVO analysis.
Phase B is to shoot more 3D if necessary (by 1/10/2023)
Phase C is the drill or drop decision, which is needed by 1/10/2025.
Not any change for onshore wind though it seems, which does not read through particularly well for PMG.
Emphasis seems to be on North Sea gas, and ...well...we'll see if Platypus is included and if so, who picks it up in the summer licensing round.
And another technical report commissioned on fracking....which will take years and then get brushed under the carpet when things are a little more back to normal. Kick those more contentious issues further down the road for a while...what a surprise!
doyle, there is much potential for sure. The question is will any of it ever get realized?
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..
Back of an envelope workings - avg TTF price for March = €131/MWh.
Assuming 1) PMG don't receive that but approx 16% less (as per previous info they have given us), and 2) production is still at around 300 boepd (and production cost still around £7.50/boe), that would give March revenue at close to £1.6m.
Jan and Feb TTF prices averaged lower (€85/82) but that would still be £1m per month...
They have alluded to it often in the past - from 2020 presentation "Potential for transformational transaction in future - possibly via RTO"
I suspect they were hoping JHI were going to be the one, But CEC is still on the table I guess.
One can hope!
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.
NQM, I don't think 'diddly squat' is fair. They've clearly done a lot in terms of pulling together the acreage, technical studies, negotiating a potential deal to get the oil flowing....it has taken a long time, and has been the (potential) jewel in the crown for many years.
But it hasn't happened... and they are rapidly running out of time.
Without GPA, there is little reason to stay invested (IMHO).
As time goes on, and we learn more (i.e.lack of visibility of the royalty in NL, lack of progress with windfarm, backing out of Platypus, relinquishment of Lowlander (a key part of GPA for many years) then serious doubts are creeping in...for me at least.
They need to get the deal done, and quickly.
Looking at the licence for Perth (P.2154), the initial term ended 30 Nov 2018, and the second term ends 1 Dec 2022 (i.e. later this year).
The work Program commitment is to
(i) obtain 150km2 3D seismic, and
(ii) drill or drop - drill one well to the shallower of 3800m or 500m below the base cretaceous, or cease the licence.
PMG are currently paying a licence fee of £3000 x the area factor (approx 5.6) = £17K pa.
I don't recall them saying they have obtained any 3D seismic, and there's not enough time to drill a well. In theory they can ask for an extension I think (?).
What do you think will happen?
Blackadder (P.2435) first term is up 1 October 2022.
By then the work program needs to be - complete structural history, structural mapping, depth conversion, reservoir quality and fracture studies.
Then by 1 Oct 2024, Phase C needs to be completed - drill or drop - drill to shallower of 3000m or Carboniferous...
According to the last AR - "Parkmead is working closely on this licence to better understand the reservoir effectiveness."
What do you think will happen?
Ruvaal (P2402) first term is up 1st October 2022. Before 1 Oct 2021 they needed to have completed a rock physics study.
Phase C needs to be completed by 1st October 2024 - drill or drop - drill to shallower of 3500m or below top chalk....
What do you think will happen?
Skerryvore licence has been extended - but it still looks like Phase C starts 1st Oct 2022, which is a contingent drill to 3500m within 3 years.
Let's hope they go for it.
Production figure graphs here (if it works):
https://imgur.com/MIrgxis
doyle, that Finncap note needs to be taken with a very large pinch of salt...a tablespoon even.
As pointed out, it is paid research, but it also has several errors (surprising since you'd think PMG might get to proof read it before publication, given they are paying for it....).
- They include Lowlander in the GPA project...but PMG have relinquished it.
- They includes Sanda North and South in the unrisked NPV - but PMG have relinquished both! That is very significant because they state the unrisked NPV as £17.54/share, but take out Sanda and it's £11.53...
Haven't looked into it anymore...
They say "Technical studies are underway on this site."
No change there then. That's been happening since they bought the site in 2019, nearly three years ago.
Must be very technical. Still no sign or mention of a possible planning application.
Good article a couple of snippets (MY CAPS in place on the red text in the article!):
"Skerryvore has been waiting for some time, with Parkmead having previously said it was seeking to drill BACK IN 2015."
"Elsewhere, Parkmead said it is “assessing draft commercial offers” from the Scott field partnership to use its Greater Perth Area as a tieback – something Parkmead has been reviewing for AT LEAST 12 MONTHS, while studies on Scott as a host have been taken place AS FAR BACK AS 2018."
They seem to be clearly emphasizing just how slow progress has been... :-)