REG - Parkmead Group (The) - Completion of the sale of Parkmead (E&P) Ltd

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RNS Number : 9058G  Parkmead Group (The) PLC  01 May 2025

1 May 2025

 

 

The Parkmead Group plc

("Parkmead", "the Company" or "the Group")

 

Completion of the sale of Parkmead (E&P) Ltd

Further to the announcement on 12 December 2024, Parkmead is delighted to
report that all conditions relating to the sale of its wholly owned
subsidiary, Parkmead (E&P) Ltd (the "Subsidiary"), to Serica Energy (UK)
Ltd ("Serica") have now been met and that the sale has therefore completed.

Pursuant to the terms of the sale & purchase agreement, Parkmead has
received a cash payment of approximately £7.3 million on completion
(inclusive of working capital adjustments). Parkmead will also receive a
further £7.0 million of additional firm cash consideration and up to £120
million of contingent cash consideration, payable as follows:

-    Two further deferred payments totalling £7.0 million, payable in
instalments of £3.1 million and £3.9 million on the 27(th) of February 2026
and 27(th) of February 2027 respectively. These future payments are committed
firm cash payments and are not subject to any conditions; and

-   Two contingent payments, payable upon receipt by Serica of approval by
the North Sea Transition Authority ("NSTA") for any field development plan
("FDP") relating to any development on licence P2400 (containing the
Skerryvore prospect) or licence P2634 (containing the Fynn Beauly oil
discovery).  These cash payments are to be calculated based on £0.8/bbl of
the 2P reserves contained within the respective FDP net to the Subsidiary's
current 50% working interest in each licence, subject to caps of £30 million
(in relation to licence P2400) and £90 million (in relation to licence
P2634).

Beyond this sale of its UK North Sea offshore licences, Parkmead has retained
100% of its cash producing assets.  These are all onshore and comprise its
interests in several gas fields in the Netherlands and its wholly owned wind
farm in Scotland.

Parkmead's Executive Chairman, Tom Cross, commented:

"I am delighted to announce the completion of the sale of Parkmead (E&P)
Limited, which at the point of sale contained our UK offshore licences.  The
Group has received an excellent immediate cash payment for the disposal of
this subsidiary, with further firm cash payments due over the next two years.
We also retain a very attractive share of the upside should the significant
projects at Skerryvore and Fynn Beauly proceed to development.

Parkmead is in a strong position and remains focused on maximising value from
its onshore natural gas and renewable energy projects, in addition to
unlocking attractive acquisition opportunities.  Our management team is
excited to deliver the next phase of the Group's growth plans in renewable
energies, natural gas and international E&P."

 

 

 The Parkmead Group plc                                    +44 (0) 1224 622200
 Tom Cross (Executive Chairman)
 Andrew Smith (Executive Director - Business Development)

 Cavendish Capital Markets Limited (Nomad and Broker)      +44 (0) 20 7220 0500
 Marc Milmo / Seamus Fricker - Corporate Finance
 Iain MacArthur - Sales

 

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