Losses for year increase
Parkmead produces first gas at Dutch field
Oil group Parkmead has announced the first commercial gas production at the Diever West gas field in the Netherlands.
Unveiling annual results the Aberdeen firm said it maintains its appetite for acquisitions and has built a strong platform from which to become a key E&P player in the North Sea.
Revenue for the year remained relatively strong though understandably lower in the oil price environment at £18.6 million (2014: £24.7m) and it turned a £1.04m pre-tax profit last year into a £30.8m loss after taking a £12.9m hit on the Athena field in the Moray Firth.
Executive Chairman, Tom Cross, said: “I am pleased to report another important year of progress for Parkmead, despite the challenges of the low oil price environment. Parkmead discovered and has now brought onstream a new gas field at Diever West, in the Netherlands. This will deliver profitable gas production and important additional cash flow to the Group. We have successfully brought this new gas field onstream within 14 months of discovery, which is an outstanding achievement.
“Parkmead is increasing the group’s net gas production in the Netherlands through a low-cost, onshore work programme. This will act as a natural hedge to the very low global oil prices.
“Our major new licence awards in the UKCS 28th Round were an impressive result for Parkmead, with 12 new offshore oil and gas blocks awarded to the Group. We were delighted with the awards located close to Parkmead’s PDL development, as they have the potential to add significant value to our assets in this area.
“Parkmead is well positioned to take advantage of the lower oil price environment and the opportunities that are arising from this. We have excellent regional expertise, significant cash resources, and a growing low-cost gas portfolio. The Group will continue with its licensing and acquisition-led growth strategy, securing opportunities that maximise long-term value for our shareholders.”