The Parkmead Group plc is in talks to sell its offshore UK licences as the company posted a swing to a profit in its full-year preliminary results.
ASSETS
The affected interests lie in the UK West of Shetland, Moray Firth and central and southern North Sea.
Included in the portfolio is part ownership of licence P2536, comprising blocks 14/5a, 14/20d and 15/11a and containing seven undeveloped discoveries, including Fynn Beauly in the UK Moray Firth.
The company also operates the Skerryvore prospect in the UK central North Sea where it has made ” good progress”.
Parkmead has already decided against further progressing the Gamma East prospect within P218 and intends to relinquish the licence.
Executive chairman Tom Cross cited “negative investment environment” from successive governments and “ambiguous” energy policy and changes to the fiscal regime for the decision to sell its UK portfolio.
“Furthermore, Parkmead recognises that it has a valuable asset in its UK ring fence tax loss pool that could be used against future UK production.
“Parkmead is therefore in discussions regarding a potential sale of its UK offshore position, as it looks to deliver shareholder value from these assets.
“These discussions are ongoing.”
The group also holds oil, gas and renewable energy projects onshore Netherlands and onshore UK.
Year ended 30 June 2024 saw profit after tax of £4.9 million compared with a £42.3m loss in 2023.
Revenue fell by near two thirds to £5.7mn (2023: £14.8m) following lower average realised gas price offset by a rise in gas and electricity production.
Gross margin amounted to £3.4m (£12.5m) while cash reserves of £9.5m are for further investment opportunities (£11.6m).
Parkmead said that increased production onshore Netherlands was driven by the successful development of LDS-01 on the joint venture Drenthe VI licence.
Gross production for the year across the group’s Dutch assets increased to 3.3kboe/d (2023: 3.0kboe/d) including Diever-02, brought back on stream in February, which has performed “steadily”.
The partners expect to make a final investment decision on the VDW-A prospect, which sits partially on the Drenthe VI concession, in 2025.
Technical work continues on the Geesbrug field with the potential for two further wells, for which the Drenthe V partners anticipate making a final investment decision in H2 2025.