Parkmead Group Plc (LON:PMG) executive chairman Tom Cross has described 2017 as “an important year of progress” for the company.
“The group moved into gross profit as a result of increased gas production and the cost reduction programme in the UK,” Cross said in a statement.
“This is an outstanding achievement for Parkmead at a time when global oil prices have remained low.”
“Parkmead's gas production acts as a natural hedge in the challenging oil price environment.”
Parkmead reported £1.2mln gross profit for the year, marking an improvement from a £4.6mln loss in the preceding year.
The company highlighted that it ended the twelve months, to June 30, well capitalised with a cash balance of US$34.3mln and it was debt free.
Cross added: “We are delighted to have significantly increased production at the Diever West gas field, which increases Parkmead's cash flow. New reservoir modelling indicates that Diever West could be more than double the size originally expected.
“We are also pleased to have been able to increase our stakes in core areas of the group's portfolio during the year, particularly around the Greater Perth Area oil hub in the UK North Sea, where Parkmead has strengthened its position.
“The group is in discussions with leading, international service companies and oil companies with regards to the Greater Perth Area.”
“The team at Parkmead is working intensively to evaluate and execute further value-adding opportunities which could provide additional cash flow to the company.”