REG - Parkmead Group (The) - Record Gas Revenues and Accelerated New Drilling

ParkmeadAnnouncement

06/07/2022 07:01

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220706:nRSF4244Ra&default-theme=true

RNS Number : 4244R  Parkmead Group (The) PLC  06 July 2022

6 July 2022

 

The Parkmead Group plc

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

 

Parkmead delivers record gas revenues and accelerates new drilling

Parkmead, the independent energy group, is pleased to provide the following
trading update on the performance of its Dutch gas assets for the year-ended
30 June 2022.

Record gas revenues, ahead of expectations

Parkmead's high-quality gas assets continue to perform well and, combined with
the additional volumes resulting from the royalty deal agreed in 2021, the
Group has benefited from continued high European gas prices. As a result,
revenue for the year to 30 June 2022 from the Company's Dutch gas assets is
now expected to exceed €14.5 million, ahead of the Board's expectations.

Gas prices have remained around €100/MWh following the invasion of Ukraine
and prices have experienced a large upward spike since mid-June 2022. Parkmead
expects gas prices could remain elevated for the short to medium term, due to
tight gas supplies in Europe, therefore Parkmead has chosen to remain 100%
unhedged.

The average netback for the year to 30 June 2022 from the Netherlands was
approximately $120 per barrel of oil equivalent ("boe"), with a field
operating cost of just US$8.6 per boe. Average gross production for the year
across these assets was 21.8 million cubic feet per day ("MMscfd"),
approximately 3,750 barrels of oil equivalent per day.

New two-well gas drilling campaign is ahead of schedule

A drilling rig has been secured for the upcoming 'LDS' two-well campaign in
the Netherlands. We now expect to receive the rig by early Q4 2022, ahead of
the schedule outlined in the interim results. The LDS wells will be drilled
from the existing Diever well site and will target a combined mid-case
gas-in-place of 37.2 billion cubic feet ("Bcf") in the prolific Rotliegendes
reservoirs within this licence. The production tie-in period for these onshore
targets is very short and, provided success at LDS, would result in
significant additional revenue and cash flow for Parkmead.

Tom Cross, Executive Chairman, commented:

"We have delivered record gas revenue from our Dutch gas assets for the year
to 30 June 2022 and remain very confident in the outlook for these assets as
we build momentum across Parkmead's operations in this region.

The innovative royalty deal we completed last summer is now bearing fruit and
is adding considerable value to Parkmead. Our Company remains 100% unhedged
and is directly benefiting from these additional gas sales at higher prices.

We are also delighted that our drilling campaign in the Netherlands is
currently ahead of schedule.

To complement our Dutch assets, we will continue to focus on building a
portfolio of high-quality energy projects through acquisitions, organic growth
and the active management of our assets across all energy sectors."

 

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 - ECM

 

 

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

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU No.
596/2014) which is part of UK law by virtue of the European Union (Withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTUPUUPMUPPGQA