Parkmead Group (The) Live Discussion

NoQuestionMarks 30 May 2019

A Morsel Agreed. It reminds me of Serica, for ages we were waiting on a decision on Columbus and then the Erskine deal came out of left field. I noticed from the CNOOC a results that their profit for 2019 was only 93% of what it was in 2013… At first glance it seemed negative. But, When you consider that Brent in 2019 was only 66% of what it was in 2013 it shows just how well they have adapted.

TheDell 29 May 2019

A Morsel Would have to think a positive outcome for Platypus alone (not including GPA) might take the share price to £1 plus, extra synergies by way of marked increase in cash flow for investments elsewhere. Providing all things remain equal (oil prices remain stable) in a turbulent world

NoQuestionMarks 28 May 2019

A Morsel Thanks for sharing this, I had missed it. Our 7.5% share of the Diever West Production has kept the wolves from the door. A 15% share of a field roughly a third larger will come in very handy, Diever West ain’t going to last forever. We will just have to wait for that FID in Q3. There are so many plates spinning at the moment that something has to materialise soon (how many times have we said that!) Patience needed in abundance.

TheDell 25 May 2019

A Morsel The Dana 59% operated Platypus gas field North Sea, 15% Parkmead Is estimated to hold 180 billion ft3 of gas reserves. First gas targeted 2021. As of yesterday Dana is understood to have selected Perenco`s Cleeton platform as the prefered offtake route for gas output from its Platypus developementin the UK southern North Sea. A final investment descision is expected Q3.

NoQuestionMarks 21 May 2019

History of the North Sea If you have an hour to spare, this speech from Tony Craven Walker of Serica is an interesting read. From the Forties discovery with BP up to the present day with Serica, I found it fascinating. > Blockquote

NoQuestionMarks 01 May 2019

Results £640m worth of shares traded in April, a marked increase on the previous four months where the total value of shares traded amounted to around £550m.

TheDell 18 Apr 2019

Website updated Thanks for update, a few barrels more!!

NoQuestionMarks 18 Apr 2019

Website updated The ‘our assets’ section of the website has been updated to show the licenses acquired last year. Struggling to break through 70p, which I’m not too worried about, as long as we hold above 60p I am happy for now. Don’t forget it was only 18 months ago that we were able to buy, for several months at around 35p. [link]

NoQuestionMarks 10 Apr 2019

Scott it is! Polar Capital have reduced their holding from 4.75% to 3.90%. Share price still on the up so there is plenty of demand.

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”.