REG - Parkmead Group (The) - Update on Netherlands and Renewables Portfolios

ParkmeadAnnouncement

02/02/2024 07:00

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RNS Number : 7659B  Parkmead Group (The) PLC  02 February 2024

2 February 2024

 

The Parkmead Group plc

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

 

Increase in Netherlands Gas Production and Reserves and update on UK
Renewables portfolio

 

Netherlands Gas Production

Parkmead, the independent energy group, is pleased to provide an update on gas
production following the LDS-01 well being brought into production in Q4 2023.

As previously announced, the Diever-02 well was shut-in in October to allow
the successful new discovery well LDS-01 to be brought onstream.  Since
coming onstream, gas production from LDS-01 has consistently produced at
average rates of close to 5,000 boepd (gross) and upwards of 370 boepd (net)
to Parkmead throughout November, December and in the year to date. Parkmead's
overall average net production over the same period from all the Dutch gas
assets continues to exceed 430 boepd. This is Parkmead's highest level of gas
production since April 2020.

The total volume of gas produced from LDS-01 to date has now significantly
exceeded the predicted P50 (most likely) gas reserves case. A production plan
will be confirmed in due course to allow both LDS-01 and Diever-02 production
to be optimised together.

This successful drilling has created further upside potential as the above
figures exclude gas condensate production from these wells, which is reported
separately to the dry gas production.  Parkmead's net condensate production
has been boosted by LDS-01 to more than twenty times the Company's previous
level.  This will provide in due course a further additional boost to the net
production figure stated above.

Parkmead is also pleased to provide an update on production from its Geesbrug
(GSB-01) well. Following a successful mini-coil clear-out in late 2023,
production from GSB-01 has come back strongly at rates approximately fifty
percent greater than previous. Despite being a tight formation, Geesbrug
continues to be Parkmead's biggest producer outside of the prolific Drenthe VI
concession.

Update on UK Renewables portfolio

In addition to the excellent progress made in the Netherlands, Parkmead has
also benefitted from delivering outstanding operational uptime at its 100%
owned Kempstone Hill wind energy company, with revenues from the wind farm
continuing strongly. At Pitreadie, commercial discussions are progressing with
joint venture partners. Further studies, including environmental surveys, and
planning work are scheduled to take place during 2024.

Renewable energy remains a key focus area of growth for Parkmead.  In
addition to the organic development of the Company's existing portfolio of
operating and development assets, the Company continues to actively seek
opportunities to acquire value adding wind and solar projects, both in
production and under development to provide further diversification to the
Company's revenue streams.

 

 

Tom Cross, Executive Chairman, commented:

"We are delighted to confirm that the LDS-01 gas well has been brought
onstream, on schedule and under budget, and that the early production data has
demonstrated further reserves potential.

Parkmead's Dutch gas assets continue to yield successful discoveries and
enhanced production from some of the most prolific onshore fields in the
Netherlands. These fields perform exceptionally well with very low operating
costs. Furthermore, work is progressing on the potential development of the
Papekop gas field targeting 35.6 Bcf of gross gas reserves with first
production as early as 2027.  The upside value of these assets is further
underlined by the recent prospectivity review carried out by the partnership,
which has identified a number of exciting new leads and prospects which will
be matured through a work programme in 2024."

For enquiries please contact:

 

 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 to Parkmead)   +44 (0) 20 7220 0500
 Marc Milmo / Seamus Fricker - Corporate Finance
 Leif Powis - Sales

 

About Parkmead

 

The Parkmead Group is a UK and Netherlands focused independent energy group
listed on AIM of the London Stock Exchange (AIM: PMG). The Group produces
natural gas from a portfolio of four fields across the Netherlands and holds
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 direct to the UK grid. This is in addition to a range of
complementary renewable energy opportunities throughout the Group.

 

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

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