Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

This oiler has 50% upside, but what's driving the shares today?

Parkmead has increased proved and probable reserves to 27.9mln barrels of oil equivalent from 23.5mln.
This oiler has 50% upside, but what's driving the shares today?
The company wants to create a hub operation around what's currently one of the largest undeveloped areas in the North Sea.

Shares in Parkmead Group PLC (LON:PMG) rose 14% after clinching a deal that will increase its oil reserves in the Moray Firth by almost a fifth.

It now owns just over 60% (up from 52%) of the licences for the Perth and Dolphin (PDL) areas that are host to two “sizeable” accumulations light crude and that have been tested at production rates of 6,000 barrels a day.

As a result of the transaction, Parkmead has increased proved and probable reserves to 27.9mln barrels of oil equivalent from 23.5mln.

No financial details were given.

This latest deal follows the company’s recent acquisition of an additional 50% of the Polecat and Marten fields, announced last month.

Given their proximity to Perth and Dolphin, it is hoped they can be incorporated into a larger North Sea oil producing area.

The Moray Firth is already host to some big operations, including the Piper, Claymore and Tartan fields.

“This growth step strengthens Parkmead's asset base in the centre of the company's major Perth-Dolphin-Lowlander oil hub project, which is one of the largest undeveloped oil projects in the North Sea,” said Parkmead chief executive Tom Cross.

Shares in Parkmead, which have advanced 30% in the year to date, were changing hands for 55.94p for a rise of 6.69p.

The small-cap broker finnCap reckons the stock is worth 80p, while Panmure Gordon says 'buy' up to 105p.

"The pace of deal activity at Parkmead is picking up, and we continue to anticipate that the company will be able to achieve further value adding deals, given Tom Cross’s track record and what looks like a market for transactions in the UK North Sea that is beginning to creak open," said Panmure's Colin Smith.

 

 

 

View full PMG profile View Profile

Parkmead Group Timeline

Related Articles

Green energy
April 10 2018
PowerHouse Energy has been busy over the past year, establishing its demonstration plant in the UK, signing deals to develop a hydrogen bus, and even trialling its technology in Qatar ahead of the 2022 FIFA World Cup
picture of oil wells
September 06 2017
The core of the portfolio is in the East Midlands Basin, which includes the Wressle-1 oil discovery
picture of wind turbines
January 11 2018
The construction of more than 600 wind turbines was funded by securing US$1bn of financing during the year.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use