The Parkmead Group plc said it expected record gas revenues to exceed €14.5 million from its Dutch onshore gas assets as it also announced plans to accelerate new drilling.
UNHEDGED
The company added that for the year ended 30 June 2022, revenues were ahead of expectations.
The figure was boosted by additional volumes from the royalty deal agreed in 2021 and high European gas prices.
“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.
Average gross production for the year across the assets was 21.8 million cubic feet per day, approximately 3,750 barrels of oil equivalent per day.
DRILLING
Parkmead said it had secured a drilling rig for the forthcoming ‘LDS’ two-well campaign in the Netherlands.
The rig is due to arrive by early Q4 2022, ahead of schedule.
The LDS wells will be drilled from the existing Diever well site and target a combined mid-case gas-in-place of 37.2 billion cubic feet in the prolific Rotliegendes reservoirs within the licence.
The company said that the production tie-in period for the onshore targets was very short and, provided success at LDS, would result in significant additional revenue and cash flow.
QUALITY
Executive chairman Tom Cross added that the company remained very confident in the outlook for the gas assets.
“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.”
The group currently produces natural gas from four fields across the Netherlands and holds a portfolio of additional oil and gas interests across the UK and Dutch sectors.