Parkmead shares jump on Netherlands gas well success

By Kristy Dorsey

Shares in Parkmead Group closed yesterday’s trading 7 per cent higher after the Scottish energy group announced a new onshore gas discovery in the Netherlands.

The company, headed by executive chairman Tom Cross, said the successful well is ready for tie-in to production once drilling at another site is complete. This will trigger an “immediate” increase in production and cash flow.

Mr Cross said the well is the first of two in a campaign on the Drenthe VI concession targeting several onshore gas projects. Its success “significantly de-risks” the follow-on prospects for the second well.

“We are delighted to announce a gas discovery from the first well of the two-well LDS drilling campaign,” Mr Cross said.

“The immediate proximity to production infrastructure allows for an extremely short tie-in period, and we expect first gas to be onstream within the first quarter of this year. This will provide Parkmead with immediate net production and cashflow.”

He added that the group’s assets in the Netherlands are continuing to yield additional discoveries and enhance production from this “prolific” onshore region.

Parkmead recorded record profits for the year to the end of June as bumper oil and gas prices drove revenues to an all-time high. The group, which is headquartered in Aberdeen, got a significant boost from its move in 2021 to double its interest in the Grolloo, Geesbrug and Brakel onshore gas fields in the Netherlands to 15 per cent.

Shares in Parkmead, which are listed on London’s Alternative Investment Market, closed 3.7p higher at 56.3p.

CREDIT: Kristy Dorsey