Parkmead Group (AIM:PMG) told investors it will now increase its interest in the Skerryvore prospects in the Central North Sea, where UK authorities have approved plans for the drilling of a new exploration well.
In a statement, Parkmead said its stake in the project will rise to 50% from 30% - with partners Serica Energy and CalEnergy holding 20% and 30% respectively.
The Skerryvore well will be Parkmead’s first exploration as an operator, it noted. The well is planned to test ‘stacked’ exploration targets estimated at around 157mln barrels oil equivalent.
It noted that, in a success scenario, the new resources could be tied into existing and planned infrastructure in the vicinity which feasibly allows for expedited development into production.
“Parkmead's technical team has made significant progress on the licences held by the company and the decision to proceed with drilling the Skerryvore prospects is a major milestone,” said executive chairman Tom Cross.
“We are seeing renewed UK government interest in the North Sea, as it seeks to bolster energy security, and we are excited by the opportunities that exist within our assets in this prolific region.”