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Energy

Parkmead sees first gas from Diever West after fast-track development

Diever West, which has tested at about 5,000 boepd, presents ‘a natural hedge’ against low oil prices, says Tom Cross.

Parkmead (LON:PMG) told investors that the Diever West gas field, onshore Netherlands, has achieved ‘first gas’.

It comes just 14 months after the field’s discovery, with the Diever-2 well.

The well, which has previously tested at around 5,000 barrels oil equivalent per day, exceeded expectations at the time and it has subsequently been the subject of a low-cost, fast track development programme.

Diever West has been connected to existing nearby infrastructure.

"We are delighted to achieve first gas from the Diever West field in the Netherlands, which provides an important additional revenue stream for Parkmead,” said executive chairman Tom Cross.

“The company has already received revenues from the first gas sales from the field.”

He added: “The new gas production from Diever West will act as a natural hedge to the low oil price environment at this key stage in Parkmead's growth."

Parkmead, in a separated statement, reported financial results for the twelve months to June 30.

It said revenue had remained “relatively strong” at £18.6mln, down from £24.7mln in the prior year, whilst the company reported a pre-tax loss of £30.8mln.

At the end of the period the company had £105.6mln of net assets, with a £41.1mln cash balance.

The company told investors it was strategically positioned to make further acquisitions, having already completed six since it was established as an independent company.

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