Parkmead Group (The) Live Discussion

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TheDell 04 Apr 2019

Scott it is! That’s through one gateway, raises the spirits .

NoQuestionMarks 04 Apr 2019

Scott it is! Good spot, thanks for sharing. FEED approval this month with final investment decision planned before the end of the year. Hopefully our wait for concrete progress is near an end. "Project Summary The Perth development is located in block 15/21C in the Outer Moray Firth. The initial Core Perth development will comprise up to five production and two water injection wells (phased) tied back via a dedicated manifold. The chosen development concept is now a subsea tie-back to the nearby Scott platform, which is circa 10.45km away. The project is scheduled to get OGA approval to go in to FEED in April 2019. FID is planned for Q4 2019 with 1st hydrocarbons currently planned for 1H 2022. We are currently executing a number of scopes with our chosen engineering contractors. We are not looking for any additional support from the supply chain at this time. "

TheDell 04 Apr 2019

Scott it is! [link]

NoQuestionMarks 03 Apr 2019

Investors Chronicle The Verbier appraisal well was a duster… A nightmare for Jersey oil and gas, and not great for us either. I suppose the positive for us is that it looks increasingly likely that a hub type development for the Buchan area is the most feasible way to monetise Verbier and the other undeveloped pools. Polecat and Marten are on the outer edge of the Buchan hub and may have been dropped if Verbier was appraised up above 100 mmboe. It looks like it’s going to be appraised down closer to the 25 mmboe estimate. Therefore, Polecat and Marten are more likely to be included in a plan, if one materialises. Will Equinor simply drop it? It is small potatoes to them… Andrew Benitz, CEO of Jersey Oil & Gas, commented: “We are both surprised and disappointed by the results of our appraisal well. JOG remains confident that Verbier is a commercially viable development project that could be further enhanced by the potential for a new area hub development, together with undeveloped discoveries that sit in close proximity to Verbier”

NoQuestionMarks 02 Apr 2019

Investors Chronicle Many thanks TheDell, got it. “I am not one for hyperbole, but the half-year results from Parkmead (PMG:57.5p), a small-cap oil and gas exploration and development company, led by 19 per cent shareholder, Tom Cross, the founder and former chief executive of Dana Petroleum, until its sale to the Korea National Oil Corporation in 2010, blew me away. Parkmead produces gas from a portfolio of four fields across the Netherlands, and holds oil and gas interests spanning 30 exploration and production blocks in the North Sea, several of which could prove transformational for shareholders this year. The company holds a 7.5 per cent stake in the Diever West gasfield in the Netherlands, which came on stream in November 2015, and averaged the equivalent of 5,340 barrels of oil equivalent per day (boepd) in its first six months. It has been exceeding expectations ever since, so much so that output in the latest six-month period surged by 54 per cent to 8,293 bopd. Moreover, dynamic reservoir monitoring suggests that it has 18.6m barrels of oil equivalent of gross gas-in-place, or 108bn cubic feet. That’s more than 2.5 times the original estimate. In addition to Diever West, Parkmead’s low-cost onshore gas portfolio includes three other fields in the Netherlands, and the four fields in total have an average operating cost of just $12.3 (£9.50) per barrel of oil equivalent. So, with output surging, half-year gross profit of £3.84m on revenue of £5.3m almost matched that of the whole of the previous financial year, and produced a post-tax profit of £2.2m. Importantly, the company is now cash-flow positive on an operating basis and retains a robust balance sheet, which was buoyed post period-end by a £6.2m inflow following the recent takeover of Faroe Petroleum, a company in which Parkmead was a shareholder. As a result, net cash of £30m equates to more than half of Parkmead’s market capitalisation of £56m, implying that its Dutch gas operating assets and the 30 North Sea Licences are being incredibly lowly rated. That’s anomalous for several reasons, not least of which is that these licences include the Parkmead operated Polecat and Martin oil fields in the UK Central North Sea. These are located eight miles to the west of Blocks 20/5b & 21/1d in the Outer Moray Firth. I know the blocks well because Jersey Oil & Gas (JOG:224p), a UK North Sea-focused upstream oil and gas company and a constituent of my 2019 Bargain Share Portfolio, holds an 18 per cent interest in both licences. Bear this in mind, the result of an appraisal drilling programme on the flagship Verbier discovery in Block 20/5b is due to be announced in a few weeks’ time. Initial operator estimates suggest gross recoverable resources associated with the Verbier discovery is between 25m and 130m barrels of oil equivalent (boe) with an estimated mean of 69mboe. The purpose of the appraisal well is to accurately determine the potential volume range in the discovery. The point being that there could be a very positive read across and valuation upside for Parkmead’s Polecat and Martin oil fields, given that they share many similarities with the Verbier discovery. It would obviously be good news for Jersey Oil & Gas shareholders, too. Progress on the commercialisation of multiple licenses Furthermore, Parkmead is making considerable progress on the Platypus gas field in the UK Southern North Sea, in which the company holds a 15 per cent equity stake alongside Dana Petroleum, the operator and 59 per cent stakeholder. Detailed development concept work has found that, by collaborating with other facilities in the area, a minimal platform concept can be adopted, substantially reducing development expenditure. In addition, the field’s gas reserves can now be recovered from two rather than three development wells. The joint-venture partnership holding the licence is working towards optimising the export route for Platypus ahead of an off-take agreement. Likely newsflow on the commercialisation of licences covering the Perth and Dolphin fields in the Moray Firth area, which contains very large oil fields including Piper, Claymore and Tartan, is another potential share price driver. Perth and Dolphin are two substantial Upper Jurassic Claymore sandstone accumulations that have tested 32°-38° API oil at production rates of up to 6,000 barrels of oil per day (bopd) per well. That’s worth noting, because Parkmead is in commercial discussions with the Scott field partnership, led by China National Offshore Oil Corporation, to explore terms of a sub-sea tie-back via the Scott platform located six miles away from Parkmead’s Greater Perth Area (GPA) oil hub. Parkmead is also holding discussions with a number of leading, international oil service companies. The point being that newsflow from either Verbier, the GPA project, further production gains in the Netherlands, or an off-take agreement for Platypus, all have scope to drive Parkmead’s share price significantly higher, and put a more realistic valuation on its 2P reserves of 46m barrels of oil equivalent (boe), and 2C reserves of 100.9m boe. This is not lost on investors, which is why Parkmead’s shares are up 55 per cent since I included them in my 2018 Bargain Shares Portfolio. However, I believe that they could double – or even treble in value – if the company commercialises either the Platypus or GPA project. The downside risk looks limited given cash backs up more than half Parkmead’s market capitalisation, and the profitable Dutch gas operations means that the company actually generates positive cash flow. Strong buy.”

TheDell 02 Apr 2019

Give us Light Hope Simon Thompson’s comments are close to the action and not “North sea Fog”.

TheDell 02 Apr 2019

Investors Chronicle Cant find a direct link to the IC comment from Simon Thompson without subscribing. But the full text has been posted over on ADVFN discussion yesterday at 12.44. Hope that helps.

NoQuestionMarks 02 Apr 2019

[link] [link]

NoQuestionMarks 31 Mar 2019

Results People were saying the same thing about false hope with Serica. I bought them from 15p all the way down to 5p. Hurricane is fully valued and Premier too debt laden in my opinion. I am in the minority, but I was in the minority with Serica too. Time will tell.

The_Marin 29 Mar 2019

Results Dream on, you guys are being strung along with false hope. These are underwhelming results at best. They need to come clean and tell us why GPA is stalling. GPA could be producing oil in around a year if the money was there and all parties were cooperating so there is something fishy going on. Its other licenses it holds are stalling as well. This company promised a lot but has done very little when you compare it with other North Sea operators, Hurricane, Serica, Premier to name but a few.

TheDell 29 Mar 2019

Results Agree with all of your comments. A GPA anouncement can’t be too far away now as first oil is on track for Q3 2021

NoQuestionMarks 29 Mar 2019

Results Pre-tax profit of £3.8m was better than I expected, very little capex in the period, but just goes to show how profitable our tiny stake in those Dutch assets is. If this performance is carried through into the second half, and the share price remains flat, we will be trading on a P/E of around 8 or 9. With the added one off gain of £6.2m to our cash balance from the FPM sale. That will turn heads. Being a profitable outfit will aid us in discussions going forward on GPA. We can play it relatively ‘cool’ as we have a cash generating business without GPA. Looking ahead, Platypus will hopefully replace the lost production as Diever depletes because it ain’t going to last forever. Continue to hold and will add if we dip substantially under 50p. nqm.

TheDell 29 Mar 2019

Results Encouraging financial results. Plenty of ongoing work in progress outlooks to maybe one day appreciate. Bottom draw hold, definately !!!

TheDell 21 Mar 2019

Faroe- UK joint NQM. Yes we do need partners and funding, we have targets lets hope there is plenty of ammunition available. An update on GPA next week would let off a bit of building PI “steam”. Big picture on West of Shetland might be further down the line. We are listening Tom!!! GL.

NoQuestionMarks 20 Mar 2019

Faroe- UK joint No money back, no guarantee! Results should be in next week, here’s hoping for something concrete. We have a range of options, most requiring partner funding, we just have to trust in the companies ability to strike a deal or three. He who dares Rodders!