Parkmead puts in offer to buy Lochard

Oil and gas company Parkmead has placed an offer to purchase the entire issued share capital of Lochard.

The acquisition of the independent oil and gas production, appraisal and development firm is currently valued at £14.5m and each share worth 4.9p.

Parkmead said Lochard directors were pleased with the terms of the proposed acquisition and will recommend shareholders vote in favour of a transaction at a general meeting.

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The news follows Lochard's announcement last September that is has decided to process with a formal sale of the business.

"Since the current board was formed, the Lochard Directors have believed that the future of Lochard would be best served by becoming part of a larger entity," said Lochard Chairman, Cliver Carver in a statement Thursday.

"We are therefore delighted to have found in Parkmead a company whose management team have a successful track-record of building an E&P company and creating value for shareholders."

Tom Cross, Executive Chairman of Parkmead, said buying Lochard will increase production by more than 400%.

He said the combination of Parkmead and Lochard will create a "stronger and more diverse portfolio of assets, balanced across the UK Continental Shelf and the Netherlands".

Parkmead's shares fell 4.95% to 12p at 12:15.

RD