Parkmead Produces Record Gas Profits and Speeds Up New Drilling

Source: www.gulfoilandgas.com 7/6/2022, Location: Europe

The independent energy firm Parkmead is happy to share the following trading update regarding the operation of its Dutch gas assets for the year ending 30 June 2022.

Record gas revenues, ahead of expectations

Parkmead’s high-quality gas assets continue to perform well and, combined with the additional volumes resulting from the royalty deal agreed in 2021, the Group has benefited from continued high European gas prices. As a result, revenue for the year to 30 June 2022 from the Company’s Dutch gas assets is now expected to exceed €14.5 million, ahead of the Board’s expectations.

Gas prices have remained around €100/MWh following the invasion of Ukraine and prices have experienced a large upward spike since mid-June 2022. Parkmead expects gas prices could remain elevated for the short to medium term, due to tight gas supplies in Europe, therefore Parkmead has chosen to remain 100% unhedged.

The average netback for the year to 30 June 2022 from the Netherlands was approximately $120 per barrel of oil equivalent (“boe”), with a field operating cost of just US$8.6 per boe. Average gross production for the year across these assets was 21.8 million cubic feet per day (“MMscfd”), approximately 3,750 barrels of oil equivalent per day.

New two-well gas drilling campaign is ahead of schedule

A drilling rig has been secured for the upcoming 'LDS' two-well campaign in the Netherlands. We now expect to receive the rig by early Q4 2022, ahead of the schedule outlined in the interim results. The LDS wells will be drilled from the existing Diever well site and will target a combined mid-case gas-in-place of 37.2 billion cubic feet ("Bcf") in the prolific Rotliegendes reservoirs within this licence. The production tie-in period for these onshore targets is very short and, provided success at LDS, would result in significant additional revenue and cash flow for Parkmead.

Tom Cross, Executive Chairman, commented:

“We have delivered record gas revenue from our Dutch gas assets for the year to 30 June 2022 and remain very confident in the outlook for these assets as we build momentum across Parkmead’s operations in this region.

The innovative royalty deal we completed last summer is now bearing fruit and is adding considerable value to Parkmead. Our Company remains 100% unhedged and is directly benefiting from these additional gas sales at higher prices.

We are also delighted that our drilling campaign in the Netherlands is currently ahead of schedule.

To complement our Dutch assets, we will continue to focus on building a portfolio of high-quality energy projects through acquisitions, organic growth and the active management of our assets across all energy sectors.”


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