REG - Parkmead Group (The) - Launch of Greater Perth Area farm-out

ParkmeadAnnouncement

29/07/2022 07:00

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RNS Number : 1666U  Parkmead Group (The) PLC  29 July 2022

29 July 2022

 

The Parkmead Group plc

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

 

Launch of Greater Perth Area farm-out

Parkmead, the independent energy group, provides the following update on its
interest in the Greater Perth Area.

Greater Perth Area farm-out process

Parkmead is pleased to announce that it has engaged a leading energy corporate
finance advisory firm, Gneiss Energy Limited, to manage the process to find a
suitable partner (or partners) in relation to the Company's 100% interest in
the Greater Perth Area ("GPA") development project.

The core Perth field holds approximately 55 million barrels of recoverable oil
equivalent ("MMBoe") on a most likely, P50 basis. The wider GPA project has
the potential to deliver between 75 and 130 MMBoe on a P50 basis and could
provide material value-adding volumes to surrounding infrastructure through
field life extension.

GPA is one of the North Sea's largest undeveloped oil projects and has been
fully appraised, so no further appraisal drilling is needed. The constituent
fields have been flow tested at rates of up to 6,000 barrels of oil per day
and have produced good quality, light crude oil of between 37° and 32° API.

Parkmead has had recent dialogue on commercial terms with the nearby Scott
field partnership for the potential tie-back of the GPA project to Scott.
Scott lies just 6 miles southeast of the GPA project and a tie-back could
yield a number of mutually beneficial advantages for both the Scott
partnership and the Perth owners.

Transportation studies for the base case GPA development concept have been
completed. These have confirmed there are no technical issues that would
prevent the transportation and processing of fluids from the Perth producing
wells, all the way through the offshore infrastructure to the onshore
facilities. Parkmead continues to engage with leading supply chain companies
in order to maximise the production of oil, and is in the process of
initiating a net zero study to meet regulatory requirements.

Following the excellent progress to date, Parkmead is now in a position to
launch this farm-out process to seek an industry partner (or partners) for the
GPA Project.

The Board of Parkmead believes that projects like GPA play an important role
in underpinning the supply of energy that the UK needs during its transition
to net zero. As a fuel that is primarily used for transportation,
manufacturing and petrochemicals, oil will continue to feature as a vital
commodity in the UK over the coming years. Therefore, it is very important
that the UK continues to develop projects such as GPA in order to reduce the
UK's reliance on less-regulated, more carbon-intensive imports. Parkmead
believes that production of hydrocarbons from GPA can be done in a sustainable
fashion in alignment with the UK Government's most recent targets on carbon
emissions.

The oil and gas investment environment is improving significantly

Parkmead recognises that there have been significant global changes which have
improved the investment environment for projects such as GPA. Russia's
invasion of Ukraine has increased the UK Government's focus on energy security
and confirmed the importance of having sizeable and robust UK domestic energy
production. The rise in international oil and gas prices has also strengthened
investment appetite through enhanced economics. Parkmead has also seen a
positive investment sentiment emanating from the introduction of the new UK
Energy Profits Levy, whereby the associated investment allowance of up to 91%
has created a powerful incentive for major producers to invest in new UK North
Sea developments.

Tom Cross, Executive Chairman, commented:

"Parkmead has formally begun a farm-out of the GPA project following the
extensive technical and commercial work our team has successfully completed to
date. We have secured 100% of the GPA project and delivered a commercial
export solution, so now is the right time to drive the project forward with a
complementary industry partner. GPA is one of the North Sea's largest
undeveloped oil projects and its development would serve to increase the UK's
energy security once onstream."

 

Enquiries:

 

 The Parkmead Group plc                           +44 (0) 1224 622200
 Tom Cross (Executive Chairman)
 Ryan Stroulger (Chief Financial Officer)

 finnCap Ltd  (NOMAD and Broker to Parkmead)      +44 (0) 20 7220 0500
 Marc Milmo / Seamus Fricker - Corporate Finance
 Andrew Burdis / Barney Hayward- ECM

 

Notes

 

Tim Coxe, Parkmead Group's Managing Director, North Sea, who holds a
First-Class Master's Degree in Engineering and over 30 years of experience in
the oil and gas industry, has overseen the review and approval of the
technical information contained in this announcement. Tim is accountable for
the company's HSE, Subsurface, Drilling, Production Operations and Development
Project functions. Reserves and contingent resource estimates set out in this
announcement have been produced by Parkmead's subsurface team and are stated
as of 1 March 2022. Parkmead's evaluation of reserves and resources was
prepared in accordance with the 2007 Petroleum Resources Management System
prepared by the Oil and Gas Reserves Committee of the Society of Petroleum
Engineers and reviewed and jointly sponsored by the World Petroleum Council,
the American Association of Petroleum Geologists and the Society of Petroleum
Evaluation Engineers.

 

About Parkmead

 

The Parkmead Group is an independent, UK and Netherlands focused energy
business. Its shares are listed on the AIM market of the London Stock Exchange
(AIM: PMG). Parkmead currently produces natural gas from a portfolio of four
fields across the Netherlands and the Group holds a balanced portfolio of
significant additional oil and gas interests across the UK and Dutch sectors.
Parkmead also 100% owns and operates the Kempstone Hill wind energy company,
producing electricity directly to the UK grid, as part of the Company's
developing renewable energy portfolio.

 

For further information please refer to Parkmead's website at
www.parkmeadgroup.com

 

 

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