Oil Prices I’ve pasted a snippet from an Energy Voice article from earlier this week at the bottom of this post. I recall a figure of around $35 a barrel too. However, Tom says they are working on “engineering studies” which sounds like a firm decision is still up in the air, so that estimate could well go up or down. "Mr Cross said the move into renewables was a “natural transition” for Parkmead and “in line” with the firm’s strategy of “balancing” its portfolio. But Mr Cross insisted Parkmead was not “easing off” oil and gas projects. He said Parkmead was “working hard” on engineering studies to develop its flagship, 193-million barrel Greater Perth Area (GPA) in the central North Sea. Parkmead intends to develop GPA as a tieback to the Scott platform, operated by Chinese firm Cnooc. A final investment decision is slated for spring 2020"
Platypus The platypus field should not be forgotten. The FID is expected sometime Q3 and that’s where we are at present in the calendar year. Roll the dice Tom.
Oil Prices To quote:- Today 2 Sept , oil production growth slows to a halt on financial stress in the US. According to S&P Global Platts, onshore Alaska breaks even with Brent at $55 per barrel (and $65 offshore),while a ballpark breakeven price for US shale in the Permian is $45 per barrel. Alaska has been in long term decline. Financial stress is forcing drillers to cut back. Parkmead i am fairly sure quoted a per barrel recovery price of around $33 (brent) for GPA . Again i am quessing a little , i seem to recall that was a couple of years ago, so costings can change in that time. A little hope maybe.
Pitreadie Farm Thanks for the Reply . Scott research.
Pitreadie Farm Value the markets say Parkmead is a ‘barge pole’ job. Hard to disagree with the facts. Tom, are you listening! Value the Markets – 2 Sep 19 The Shifting Shares View: Stock sleuthing at Parkmead Group? (PMG) On Friday, Parkmead Group (LSEMG) announced an acquisition and related party transaction. Related parted transactions always seem a bit dodgy to me, but as we are told all of the directors (excluding Tom Cross) said it was OK – well, it must be. ...
Pitreadie Farm I agree with you Poleaxe, I was looking through the EMA accounts yesterday, it all seems very murky. £8m of debt, some secured on a property in Kent. What Tom and Linda do away from Parkmead is their business. BUT, Parkmeads cash and future prospects are becoming tied to the prospects of the unlisted companies they are involved with. I suppose, as a entrepreneur, he has to cast his net. Is he simply feeding through to Parkmead the fruits of his labour? After all, his fortunes (and cash) are tied to Parkmeads future prospects too. I am going to give him the benefit of the doubt. TheDell, Here’s the partners for Scott. CNOOC Petroleum Europe Limited, a wholly-owned subsidiary of CNOOC Limited, is the operating partner of Scott, Telford and Rochelle (41.89%, 80.40% and 79.29% respectively), with Dana Petroleum E&P Limited (20.64% Scott), Edison E&P UK Ltd. (10.47% Scott and 15.65% Telford), Total Oil UK Limited (5.16% Scott and 2.36% Telford) and MOL Operations UK Limited (21.84% Scott, 1.59% Telford and 20.71% Rochelle).
Pitreadie Farm £120-£140 million that is.
Pitreadie Farm A wild one this . Speculation is rife to all manner of ideas at present including takeover talk , funding for projects . Scott and Platypus the front runners. Warren has a few billion in cash at the moment and does not know where to spend it. He has just funded IOG to the tune of £120 -£140 via Cal Energy for Southern North Sea Gas developements . Would he be interested in a go here ? Probably not. I am not sure who owns the Scott hub is it Cnooc 100% or other parties also i have been checking to no avail. I don@t think Cal have an interest. To much coffee!!
Pitreadie Farm According to Peter Brailey (who is a shareholder,perhaps a touch unhappy however) writing on Shareprophets the farmhouse which is under construction will have a swimming pool & a kitchen/living room with part available as alternative use as an indoor football pitch.This info taken from plans in public domain.
Pitreadie Farm There’s too much related party stuff going on for my liking. Tom is a minority shareholder in Parkmead Group plc but appears to be treating it as ‘Bank of Parkmead’ for his (and Linda’s) private limited companies. Why has Parkmead got a £3m 10 year lease with Timestamp Ltd (Tom & Linda sole directors)? Why is Parkmead lending Energy Management Associates Ltd £2.9m (Tom & Linda sole directors), at the same time as EMA Ltd repaid £2.5m of a £6m loan from Tom & Linda? Why is Parkmead paying £8.5m for Pitreadie Farm Ltd (75% owned by Linda Cross) when in the process of building a £1m 11 apartment development on the farm? Perhaps other shareholders would like to apply to Bank of Parkmead for a cheap business loan and see how far they get.
Pitreadie Farm I also trust Toms judgement, for the moment nothing to suggest otherwise. Tom ticks ok for me . Pots still boiling. I’m putting the Pitreadie Farm down as a PR “green stamp”. Ryan “yer man” has recently outlined ongoing discussions at Scott. High su;phur has to be an issue to challenge. Is a “Tom junior” in the wings i often wonder.
Pitreadie Farm What do we think of the purchase of ‘Linda’s’ farm? More questions than answers for me. From what I can gather from the accounts there was an addition of £5.5m worth of land/buildings between 2017 and 2018. this is the expanse of land that is suitable for wind/solar/biomass or is it the land that has been planted with woodland? Total assets less liabilities in July 2018 was £7.9m Debt matched it at £7.9m. My worry is that if the farm is such a potential goldmine why would Linda Cross and the other director hand it over to Parkmead in return for shares? There is of course the debt. A £3.6m interest only loan on a five year term and a £4.3 directors loan secured against the farm. The income for the farm is described as land subsidies and sale of stock. After Brexit what will those land subsidies be? I am undecided as to whether the business is at the stage where it needs a bigger team, with deeper pockets, to help through the next stage of growth. Or, are we picking up the pieces… I trust Toms judgement, for now. But he really needs to give us a much more in depth rationale for the purchase. Some Investors are shying away from PMG as they see the company as Tom and Linda’s piggy bank. The accounts to July 2018 are here: [link]
Greater Buchan Aread I’m thinking that Greater Buchan might not be big enough for Equinor, there are lots of producing assets coming up for sale that might be of more interest to them. Meanwhile Tom keeps mentioning the FPSO option for Greater Perth, maybe he’s just using it as leverage as he tries for a deal with the Scott partners or maybe it is his preferred route. Either way I wonder if a shared FPSO for Buchan and Perth might be an option for JOG and PMG?
Greater Buchan Aread If Parkmead were liquidated chances are you might get back 50% of todays SP. If GPA comes to fruition perhaps the SP might double. A generous takeover would maybe see the SP double. My money is still on a potential moneyspinner at GPA to provide a catalyst.
Greater Buchan Aread Great thinking down the road that!! Good food for thought.Food from Warren Buffet. Quote :- Help yourself when others are fearful.