Monday 19 November 2018

Parkmead, the UK and Netherlands focused independent energy group, reported its preliminary results for the year ended 30 June 2018.

HIGHLIGHTS

Parkmead increases revenue by 70% and more than trebles gross profit

- Revenue increased by 70% to £7.0 million (2017: £4.1 million)

- Gross profit for the period of £4.1 million (2017: £1.2 million), an increase of 242%

- Strong total asset base of £78.9 million at 30 June 2018

- Parkmead remains debt-free

- Well capitalised, with cash balances of US$31.0 million (£23.8 million) as at 30 June 2018

- Maintains strict financial discipline

- Low-cost Netherlands gas production provides positive cash flow to Parkmead

- All revenues from Netherlands production received and held in Euros

Achieved a record new high in gas production

- Production at the Diever West gas field was enhanced, and achieved a new gross average monthly high in May 2018 of 56.9 million cubic feet per day (“MMscfd”). This equates to approximately 9,787 barrels of oil equivalent per day (“boepd”)

- A change in production tubing was successfully completed on the field, leading to increased potential from the two perforated intervals

- Dynamic reservoir modelling suggests Diever West holds approximately 108 billion cubic feet (“Bcf”) of gas-in-place, more than double the previous post-drill static volume estimate of 41 Bcf

- Low-cost onshore gas portfolio in the Netherlands produces from four separate gas fields with an average operating cost of just US$15.6 per barrel of oil equivalent, generating positive cash flows

- Further production enhancement work is planned on Parkmead’s Netherlands portfolio, including a new well at the Geesbrug gas field to maximise production, plus development scenario analysis at the Ottoland oil and gas discovery

Major progress on valuable oil development; potential Greater Perth Area tie-back

- Significantly increased equity in the Perth and Dolphin oil fields in the UK Central North Sea, which lie at the core of Parkmead’s Greater Perth Area (“GPA”) oil hub project

- Increased equity in the Perth and Dolphin fields raises Parkmead’s 2P reserves to 46.3 million barrels of oil equivalent (“MMBoe”)

- Parkmead now in full control of the GPA project, with operatorship and 100% equity

- Agreed with Nexen Petroleum, a subsidiary of China National Offshore Oil Corporation (CNOOC), to undertake a detailed engineering study for the potential subsea tie-back of the GPA project to the Nexen-operated Scott facilities in the Central North Sea

- Engineering study confirmed the technical feasibility of a tie-back of the GPA project to the Scott facilities

- Parkmead has entered into commercial discussions with the Scott field partnership in order to explore terms for a tie-back of GPA to Scott

- Nexen’s Scott facilities lie just 10km southeast of Parkmead’s GPA project

- New GPA reservoir study concluded that stimulating the Claymore formation would result in a considerable increase in well productivity and is likely to increase the project’s oil recovery factor

Substantial increase in oil and gas reserves and resources

- Net 2P reserves increased by 67% to 46.3 MMBoe as at 30 September 2018 (27.7 MMBoe as at 30 September 2017)

- Net 2C resources of 101.8 MMBoe, a 64% increase from Parkmead’s 30 September 2017 resources position of 62.0 MMBoe

Awarded nine new UK oil and gas blocks in 30th Licensing Round

- Awarded nine new UK oil and gas blocks and part blocks spanning five new licences in the 30th Licensing Round

- These blocks contain a range of new exploration prospects and a number of proven discoveries such as the Lowlander field

- The newly awarded licences will all be operated by Parkmead and are located in the Central North Sea, Southern North Sea and West of Shetland areas

Well positioned for further acquisitions and opportunities

- Seven acquisitions, at both asset and corporate level, have been completed to date

- Parkmead is actively evaluating further growth opportunities