REG - Parkmead Group (The) - Operational Update

ParkmeadAnnouncement

Tue 07:00

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RNS Number : 9469R  Parkmead Group (The) PLC  22 July 2025

22 July 2025

 

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.

 

 

The Parkmead Group plc

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

 

 

Operational Update

Parkmead is pleased to report on the successful conclusion of all
post-completion tasks in the sale of its UK offshore petroleum licences to
Serica Energy plc, via the previously announced sale of its subsidiary
Parkmead E&P Ltd, worth up to a potential £134 million to the Group.

The Company has retained 100% of its cash producing assets, namely its four
producing onshore gas fields in the Netherlands and its onshore electricity
producing wind farm in Scotland.

Parkmead now intends to focus its attention on the delivery of greener energy.
Therefore the disposal of Parkmead E&P Ltd marks a significant step in
recalibrating the Company's portfolio, rendering Parkmead well poised to
capitalise on opportunities in renewables, with a view to driving future
growth and generating value for shareholders.

Increased Financial Strength

Parkmead is in a strong financial position, with cash balances of
approximately £13 million as at 30 June 2025. The Group has minimal
outstanding debt of just £0.7 million, which remains from the development of
our 100% owned and operated wind farm at Kempstone Hill.

In addition, Parkmead will be receiving additional deferred cash totalling
£7.0 million, relating to the sale of its UK E&P subsidiary to Serica.
This further cash comprises two payments of £3.1 million and £3.9 million,
due on 27 February 2026 and 27 February 2027 respectively. These payments are
firm and unconditional. There are further potential payments to Parkmead of up
to £30 million and £90 million, conditional on future field development
approvals on the Skerryvore and Fynn licences respectively, providing the
Company and its shareholders with the potential opportunity to realise
significant additional upside in the future.

Glenskinnan Renewable Energy Park

Parkmead continues to advance its stake in the Glenskinnan Renewable Energy
Park, a major integrated renewables project being developed in partnership
with Galileo Empower, a leading European renewable energy developer.

The integrated scheme is being designed to deliver up to 98 MW of wind
generated electrical capacity across 14 turbines, alongside 20 MW of solar PV
and 30 MW of battery storage. Parkmead's owned land at Pitreadie will
accommodate over 50% of the combined installed capacity proposed in the
planning application, making it a central component of the development.

Key milestones include:

-     Initial public consultation, completed in April 2025

-     Scheme design being finalised in 2H 2025

-     Second public consultation scheduled for end of Q3 2025

-     Section 36 planning application to be submitted to Scottish
Government during Q4 2025

Parkmead and Galileo are currently finalising commercial arrangements ahead of
the Section 36 application, with the project representing a significant step
forward in the Group's renewable energy strategy.

Netherlands Natural Gas Fields

In the first half of 2025, Parkmead's Dutch fields delivered an average net
production of 155 boe/d. A successful coiled-tubing water wash was completed
at Geesbrug in March, resulting in production doubling on this asset.  An
unplanned shutdown of the Vries system impacted performance at Grolloo, with
production now successfully reinstated.

A number of new drilling targets are being evaluated to boost future
production. Our Dutch business benefited from stronger commodity market
conditions. During the first half of 2025, realised gas sales pricing
increased to €41.86/MWh from €38.16/MWh in the prior six months. These
assets continue to provide reliable cash flow and growth potential which
supports the Group's broader strategy.

Kempstone Hill Wind Farm

The Parkmead operated wind farm at Kempstone Hill continued to perform
strongly through the first half of 2025. Over the last 12 months Parkmead has
achieved and maintained an exceptionally high level of operational efficiency,
in the range 96-99%. This demonstrates the reliability of the asset. The Group
is continuing to assess the potential to expand the electricity production
capability of the Kempstone Hill site, to make use of its excess grid
capacity.

Corporate and Business Development

Parkmead is continuing to mature a range of high-impact investment and
acquisition opportunities. These initiatives are aligned with the Group's
strategy to grow and diversify its interests across international E&P and
UK renewable energy projects.

Given that Parkmead will no longer be an offshore licence Operator in the
North Sea, with all the regulatory aspects and operational demands that
entails, we have reduced staff positions and reduced our office space by over
40%. After more than four years of excellent service as a non-executive
director, Robert Finlay has left the board with immediate effect to focus on
his other activities. We would like to thank Robert for his important
contribution to the Group and wish him every success in the future. The
Company is well advanced in its process to bring a further independent NED
onboard and will provide an update in due course.

 

Parkmead's Executive Chairman, Tom Cross, commented:

"Parkmead has made strong progress across all elements of the business in the
first half of 2025. We have completed the sale of our UK offshore-focused
subsidiary, delivered solid operational performance from our onshore producing
assets, advanced our flagship renewable energy project at Glenskinnan, and
achieved a very healthy and robust financial position.

Our continued focus on strategic growth and efficiency ensures Parkmead is
well positioned for the future."

 

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

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

 

 

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