Friday 24 March 2017

Major progress on valuable development projects. Additional licence acquisitions

· Doubled stakes in the Polecat and Marten oil fields to 100% in the UK Central North Sea in August 2016, which are jointly estimated to hold over 90 million barrels of oil in place

· Increased stakes in the Perth and Dolphin oil fields to 60.05% in September 2016, building Parkmead's oil reserves

· Perth and Dolphin are at the core of Parkmead's Greater Perth Area (GPA) oil hub project which has been fully appraised, with a combined total of 17 wells drilled, and has expected recoverable reserves and contingent resources of approximately 104 million barrels of oil

· The Polecat and Marten fields have the potential to be highly valuable to Parkmead as, given their close proximity to Perth, they could be jointly developed as part of the Greater Perth Area project

Parkmead's Executive Chairman, Tom Cross, commented:

"I am pleased to report significant progress in the period to 31 December 2016. We have increased gas production from Parkmead's low-cost Netherlands portfolio through an onshore work programme, which has resulted in Parkmead moving into gross profit. This is an outstanding achievement for Parkmead at a time when global oil prices have remained low.

Parkmead's gas production acts as a natural hedge in this low oil price environment.

We are delighted to have been able to increase our stakes in core areas of the Group's portfolio during the period, particularly around the important Greater Perth Area oil hub in the UK North Sea, where Parkmead has strengthened its position. The Group's reserves and resources also increased significantly in 2016 through two licence acquisitions.

Parkmead is well positioned to take advantage of the ongoing lower oil price 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 to build upon the inherent value in its existing interests with a licensing and acquisition-led growth strategy, securing opportunities that maximise long-term value for our shareholders."