Parkmead completes acquisition of Netherlands assets

Oil and gas firm Parkmead has completed the acquisition of a portfolio of Netherlands onshore assets, comprising interests in four producing gas fields and two oil fields.

The assets, for which Parkmead is paying a total of €7.5m, include a 15% interest in the Andel V production licence, which covers the two producing gas fields at Wijk en Aalburg and Brakel, as well as the Ottoland oil field development, which is expected to come on-stream in 2013, plus a 15% interest in the Papekop production licence, including the Papekop oil field development.

The recent successful extended well test performed on Ottoland during the final quarter of 2011 produced oil at a stable rate from the existing single well on this accumulation, the firm said. Analysis of the test results is being carried out to allow optimisation of the development plan, including determination of the number of production wells required to efficiently drain the field.

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The firm also gains a 15% interest in the Drenthe III and IV production licences, which together include the two producing gas fields at Geesbrug and Grolloo.

An initial cash payment of €4.5m has been paid as well as a contingent €3.0m, which is payable on the first commercial sale of oil from the Papekop field development.

Tom Cross, Executive Chairman of Parkmead, said: "We are pleased to have secured stakes in these attractive licence areas that give Parkmead its first gas production and near term oil field developments.

"The acquisition of these assets marks a significant milestone for Parkmead by adding the first producing assets to the group's portfolio."

The effective date of the acquisition was January 1st of this year, at which time the assets were producing at a rate of around 2,000 barrels of oil equivalent per day (boepd), of which 300 boepd was net to Parkmead.

The share price fell 5.17% to 13.75p by 09:56.

NR