The Dell. The note says that the oil in place is the figures you seem to be saying will be produced or recovered. 197m for Perth Core and 498m including northern areas.
Your post says increase recovery to these same figures. 2p reserves now stand at 46.3m.
THE outlook for investment in the North Sea is brighter than it has been for years and more than 50 per cent of firms expect to increase employee numbers according to a closely watched report.
The latest Business outlook report by Oil & Gas UK highlights a big improvement in conditions in the North Sea where recent crude price rises have boosted confidence.
The industry body said firms are also feeling the benefit of efforts to increase efficiency made amid the deep downturn that started in 2014, which have resulted in thousands of job losses.
Our sector is leaner, more efficient and more optimistic than it has been in recent years and 2018 looks set to be a better year, said chief executive Deirdre Michie.
She added: More projects are taking place and investment is happening because of the sweeping changes made to adapt to the challenging business climate. This has helped make the United Kingdom Continental Shelf one of the most attractive mature basins in the world.
Oil & Gas UK noted official estimates North Sea production taxes should generate an average £1 billion annually for the Government over the next five years.
The North Sea cost the Treasury £0.3bn in 2016-17, as many firms made losses on their output in the area following the slump in the oil price that started in June 2014.
The partial recovery in the crude price since late 2016 has left firms in a much stronger position than they were in the depths of the downturn.
Oil & Gas UK reckons North Sea firms generated £5.5bn cash in 2017, the highest figure since 2011.
However, the industry body said many areas of the supply chain are still struggling with the impact of the downturn and have yet to benefit from any upturn in activity.
It warned that billions of barrels could be at risk unless the slump in exploration activity in the North Sea seen in recent years is reversed. Drilling activity failed to pick up last year.
Production is set to fall again from the early 2020s following deep cuts in spending on new developments since 2014.
Coming weeks after Royal Dutch Shell announced plans to redevelop the giant Penguins field north of Scotland, the report provides further evidence oil and gas firms have rediscovered their appetite for investing in North Sea developments.
Oil & Gas UK said between 12 and 16 oil and gas developments could get the go-ahead this year unlocking investment of around £5 billion.
This would be more than the total value of oil and gas field developments approved over the last three years combined, promising a boost for the hard-pressed supply chain.
Projects worth up to £25bn in total are at earlier stages in the assessment process.
Oil & Gas UK said: The project landscape for 2018 is the healthiest the industry has seen since 2013.
It reckons total spending may increase slightly this year as companies commit to new capital projects and return to deferred activities.
Total spending in the North Sea fell from £16.9bn in 2016 to £15.7bn last year. That was less than half the level recorded in 2013, amid the boom in investment which ended after growth in global supplies ran ahead of demand.
Oil and gas firms have cut the costs of production from $30 per barrel in 2014 to $15/bbl boosting profitability but putting pressure on the services sector.
Supply chain revenues are expected to be flat this year, after falling from £40.9bn in 2014 to £27.4bn in 2017.
The number of jobs supported by the industry fell by 15,000 last year to 300,000. A third of firms reduced headcount.
Oil & Gas UK said this year the outlook is far more positive with 56 per cent of firms expecting employee numbers to rise against 6% forecasting reductions.
However Total said yesterday it plans to shed around 250 jobs in Aberdeen following the acquisition of Maersk Oil.
There could be up to nine billion barrels yet to be found in the UK North Sea according to Oil & Gas UK. It thinks there is a major
Interim results were released on the 24th of March last year so I suppose we can expect them to be reported in the next couple of weeks or so.
Share price is moving up quickly and quietly, 35p gone, 40p gone and now attacking 45p.
I can understand why longer term investors in Parkmead Group (PMG) may be somewhat unimpressed with the performance of the share price recently, but the company itself is continuing to make good progress. I hold shares in the company myself, and whilst the share price has generally been trading in the mid-30p to low-40p range, in spite of the strength that the oil price has been showing in recent months, Im happy to remain invested and see how things unfold in the coming months and years.
With any oil and gas company, things always take much longer to come to fruition than people originally expect, but if a company does have a major project which it is working towards taking into production, and as long as you see a realistic chance of that actually happening, then often the best thing that you can do is nothing at all, or even add more shares whilst the price is supressed.
Parkmead is a company which operates offshore in the UK, as well as having gas assets in the Netherlands, and is run by a team which has form in the oil and gas sector for building a company into something big, with executive chairman Tom Cross having done it all before at Dana Petroleum. Past success isnt necessarily proof that the next business will perform so well, but I would definitely place some faith in him given what he has previously achieved.
The company has just announced that it has further increased its interest in the licences which make up the Greater Perth Area (GPA), one of the largest undeveloped projects in the North Sea, and with oil prices more buoyant it could well be the perfect time to have done so. Parkmead now owns 100% of the Perth and Dolphin licences, and of the GPA area, and has also signed an agreement with Nexen Petroleum to carry out an engineering study to explore the potential for a subsea tie-back to the Scott platform. Additionally, AGR Tracs has been commissioned to undertake a reservoir study looking at fracture stimulation which could increase both flow rates and the overall recovery factor, and would also mean a reserves upgrade. Both Perth and Dolphin have achieved production test results of up to 6,000bopd from a single well.
The increased stake in GPA has also added significant amounts to the 2P reserves of the company, which now stand at over 46 million barrels and with plenty of upside potential as the whole area could have as much as 500 million barrels of oil-in-place, with the core Perth area alone estimated at 197 million barrels.
Obviously that all sounds very good for a company valued at just £41 million currently especially when you take into account its other development licences such as the Platypus gas one alongside the GPA hub, plus all of the exploration blocks.
But to unlock any of that value it needs to reach production, and the company is making progress with the FEED (front end engineering design) for the field. At some point it is going to need to find significant amounts of funds to reach production, but with the option of possibly using the Scott tie-back (depending on whether that can be adapted to handle the higher hydrogen sulphide levels) that may now be a lot less than had been expected had the company gone down the FPSO route a FPSO may still be the only option, depending on whether the existing facilities can be adapted to the type of oil at GPA. I would also expect some form of debt funding rather than anything that diluted equity by a significant amount for current shareholders. The studies currently being undertaken should give a clearer picture on all of this.
Aside from GPA, the Dutch gas assets are enough to keep the company ticking along without burning through its cash reserves too quickly those stood at circa $34 million at the end of June 2017 and it is also debt-free. But it has been loss-making on a net basis and everything really revolves around the GPA area and the potential from that, if and when it starts producing. For me, given the amount
Panmure Gordon research note 7thFeb 2018:- Parkmead have commissioned AGR Trace to undertake a reservoir study that could lead to substantial increase in recovery of oil for core Perth field to 197 mmbbl and 498mmbbl including the northern areas of the field. Tenders for commercialisation in place. Despite many uncertainties it is believed these announcements will materially bring improved chances of GPA moving to commercialisation. This is a short text of the full document.
it seems way past time this s/p woke up .. it has barely participated on the ongoing POO/G rally so far.. mad is meaningfully too low now imho.. but there are plenty of others out there that are meaningfully too low imho - eg Amerisur, SDX - and so it remains a tricky O&G landscape now .. eg there is a lack of trust in the sector still .. may be shale - and renewables- related but may also be that companies might still be slow to grow nett profit for a variety of reasons and until strong figures are written in black and white in interims or finals more Instiutional money will not get switched back in etc.. so please PMG give us strong NETT profit figures this time !
Some months back Tom Cross stated, "The Parkmead Group was well ahead of Dana Petroleum in terms of development within the same timescale". The "buzz" lately and the share price showing positive signs today will maybe herald "onwards and upwards" come the mid terms to come in a week or so!!!
Reuters) - Oil prices rose on Tuesday, supported by a weaker dollar but U.S. crude's gains were limited by expectations for a weekly rise in U.S. crude stockpiles.
Brent crude LCOc1 futures rose 25 cents to settle at $65.79 a barrel, a 0.4 percent gain. Brent reached a low of $65.30 a barrel and a six-day high of $66.16 a barrel during the session.
West Texas Intermediate (WTI) crude CLc1 futures rose 3 cents to settle at $62.60 a barrel. WTI notched its own six-day high at $63.28 a barrel.
Oil prices fell in post-settlement trade after data from the American Petroleum Institute showed U.S. crude inventories rose by 5.7 million barrels last week, a bigger-than-expected rise.
Oil drew support as the U.S. dollar fell to its lowest in more than a week against a basket of currencies on news from South Korea that North Korea was willing to hold talks with the United States on denuclearization, and would suspend nuclear tests during any discussions.
South Korea also said it would hold a summit with North Korea for the first time in more than a decade.
The news led investors to sell the U.S. dollar and instead buy riskier assets such as commodities.
The dollar index last was down by half a percent. A weaker greenback makes dollar-denominated commodities cheaper for holders of other currencies.
"If you reduce geopolitical risk in the world, it might be a better place to do business and that could be bullish," said Phil Flynn, analyst at Price Futures Group in Chicago.
U.S. oil prices were under pressure from expectations that weekly crude inventory data from the U.S. government, due on Wednesday, would show a second straight rise.
Analysts polled by Reuters ahead of the data on average expect U.S. crude stocks rose by 2.7 million barrels in the week ended March 2.
Inventories are rising during the seasonal maintenance period for refineries, when shutdowns mean they need less crude.
A surge in U.S. crude production to more than 10 million barrels per day (bpd) has helped the country overtake top exporter Saudi Arabia.
Output hit a record 10.057 million bpd in November, according to the U.S. Department of Energy.
The U.S. Energy Information Administration said in a monthly report it expected fourth-quarter U.S. crude output to reach an average of 11.17 million bpd, up from its forecast a month ago of 11.04 million bpd.
The continued growth of U.S. shale has been a theme at the CERAWeek conference in Houston this week, said John Kilduff, partner at investment manager Again Capital in New York.
Brent had dipped closer to $65 in earlier trading, pressured by the International Energy Agency's (IEA) warning on Monday that U.S. oil output was set to surge over the coming five years.
The prospect of the Organization of the Petroleum Exporting Countries and non-member producers, including Russia, maintaining crude output cuts in the face of a boom in U.S. shale production helped lift Brent back above $65 a barrel this week.
April U.S. gasoline futures RBc1 rose as much as 0.50 percent to hit $1.9443 a gallon, the highest since Jan. 30, before retreating.
Just goes to show how fragile our gas supplies are, good news for those with producing gas assets like us!
LONDON (Bloomberg) -- Traders in Europes two biggest natural gas markets were scrambling for fuel on Wednesday, sending prices soaring as freezing weather exposed supply issues.
UK and Dutch gas for same-day delivery more than doubled to attract extra supply needed for heating. With Britain increasingly reliant on the rest of Europe for its fuel as it closes its biggest storage facility and the Dutch curbing production from the regions biggest field to prevent earthquakes, unplanned outages added to the woes.
Within-day prices in the UK reached as high as 190 pence a therm ($26.26 a MMBtu), almost four times their average over the past year. Those in the Netherlands reached as much as $34 a MMBtu, with hourly prices even soaring to almost 10 times that as the network manager struggled to keep the grid balanced.
Pricing reached extremes, said John Twomey, a power and gas analyst at Bloomberg New Energy Finance in London. The UK is being outcompeted by other markets on the continent that are also undergoing stress.
Significant unplanned outages added to the mix. Norway, Europes biggest supplier after Russia, curbed exports after an outage at a processing plant. The only pipeline from the Netherlands to the UK halted after a snow storm caused an unspecified technical problem, leaving just an interconnector with Belgium between Britain and mainland European markets.
A more favorable weather forecast did little to damp prices. On Friday, even colder weather had been forecast for this week, which would likely have boosted consumption further.
In future, gas supply could get even more complicated as energy trading is a political flashpoint in Brexit negotiations. Its still unclear what rules will govern shipments after the UK leaves the bloc.
Liquefied natural gas will help fill gaps in future, especially in the UK, as will shipments from Russia and Norway, he said. Wednesdays situation is being made worse because of the limits on flows from Norway.
Theres a bit of panic around, said Murray Douglas, research director for Europe gas at Wood Mackenzie Ltd., which advises companies on energy. When one, two or three things go out at the same time, you run into problems.
I understand CSZ. You seem very happy to speak about a billion just you cant explain how it can be this much. Lets just agree to call it a billion give or take 950 million as yet unexplained. That leaves just under 50m explained and believable.
However, Mr Cross noted the increase in oil prices since late 2016 along with changes in the proposed development route had improved the economics of the project. Faroe has sharpened its focus on Norway in recent years.
Mr Cross, who developed Dana Petroleum into a £1.9 billion business, said Parkmead has made significant progress with Greater Perth. It describes this as one of the largest undeveloped oil projects in the North Sea.
Parkmead said the increase in its holding allowed the group to add 17.9 million barrels oil equivalent to its reserves, boosting the total by 63 per cent to 46.3m boe.
The company is now considering a plan to develop the Greater Perth fields using a subsea tie back to the Scott platform operated by Chinese-owned Nexen. This is six miles distant.
A more costly plan to develop the fields using a floating production storage and offloading vessel had been mooted.
Parkmead has signed an agreement with Nexen to conduct a detailed engineering study in relation to the potential tie-back, which could help extend the life of the Scott platform.
The study with Nexen will examine one path to potentially unlock the substantial value of the GPA project for the benefit of the UK and Parkmead shareholders, as well as providing further value for the existing infrastructure partners, said Mr Cross, a former Entrepreneur of the Year.
The agreement comes at a time when oil and gas firms are being encouraged to collaborate to develop solutions to the challenges the industry faces in the North Sea.
Parkmead said it is in talks with a number of leading, internationally renowned service companies that are interested in working on the development of the fields.
The majority of the proposals have focused on innovative approaches to the potential development. Some of the services firms have offered finance for major parts of the development, potentially reducing the capital investment Parkmead would have to make in the project.
The response suggests the firms have confidence in the plan to complete what would be a significant development.
It may also reflect increased willingness on the part of contractors to share the risk of developing projects with operators to boost the chance of them going ahead.
Workloads have fallen sharply in the North Sea amid deep cuts in spending on new projects by oil and gas firms since 2014.
The partial recovery in the crude price since 2016 has helped boost sentiment and encouraged firms such as Shell to approve projects in recent months. However, it may be some time before work on such fields gets underway offshore.
Mr Cross joined Parkmead after Korea National Oil Corporation bought Dana for £1.9bn in 2010.
THE North Sea-focused Parkmead Group run by oil and gas entrepreneur Tom Cross has underlined its faith in the potential of a flagship field development project after taking full control.
The Aberdeen-based group said it has increased its stake in the Greater Perth Area fields in the Moray Firth to 100 per cent after acquiring the 39.95 per cent stake formerly held by Faroe Petroleum without giving details.
Faroe, which is also based in Aberdeen, expressed doubts about the commercial viability of developing the fields in 2016 as the industry grappled with the fall out from the crude price plunge.
Article by Greig Cameron, Scottish Business Editor writing in The Times on the 8th of February.
"In a further sign of its confidence in the Greater Perth development, the company has commissioned a reservoir study from AGR Tracs International to see if there are ways to improve the flow rates and recovery levels from the area. The engineering study will run for the next ten weeks and look at ways to connect to the Scott platform, which lies six miles to the southeast of the Perth area. Mr Cross said that using the existing production facilities on the Scott field would make the Perth development more commercially attractive by reducing the upfront and operational costs."
Looks like the reservoir study will be completed by the end of April.
Callsbull you promised first oil from Perth within 6 months in 2011. What happened to that then? You have all the oil knowledge of an average 4 year old but youve been posting here for 7 years getting everything wrong so we know youre not 4.
Can you please answer about the sour technology advances or the project CEO of a new jacket. Im sure wed all like to know and I might even buy in if they are as cheap and simple as you say.
I read that and wept laughing at you callsoutbull. So just the get this clear
Theres technology advances that you cant show us
There room on Scott platform but thats now if they replace the jacket
And your basis for this is a presentation from 2012 that doesnt mention sour oil or a new jacket
Nice research youve done there once again. Care to tell us s the cost of a new jacket that ncluding lost revenue while the rig is down getting it fitted? Im sure I saw one on eBay with bidding at £350 right now. Not sure if its sour prepared but lets club together for it anyway.
Theres nothing complex about putting another jacket down at the Scott platform to over come any of the issues that you think are laced with tissues.. Your problem appears to be that your glass is half empty while mine is half full.
CSZ, if there are only 9k barrels a day of oil being produced then there will be 191k barrels of water being produced and disposed of. The platform can inject up to 230k barrels of water to maintain production and probably is doing most of that. The total fluids processed remain similar over the lifetime of the field.
I recall someone saying that the H2S content of Perth was so high, it would need a weekly cargo ship to take away the solid sulphur from any removal plant. Possible but tough.
Typical callsignbull just says whatever he wants to be true instead of what is true. Gone from plenty of room for modifications to plenty of room if they scrap half the platform. Im sure thatll be all at and end cost too?
CSZ, I think that answer just shows that you don't know much about how platforms work, and the complexity of making modifications.
No responses on my other points? I take it that you therefore accept them as valid points. I'm not asking you to agree with them (unlikely, given your past posts), but I think that its important that any investors or potential investors get a balanced view.
The Scott platform is currently averaging 9k barrels a day down from 200k a day when it achieved max production . Now there appears to be plenty of room for out with the old and in with the new hardware.
CSZ, the normal approach is to carry out studies to see where the stumbling blocks are, and to identify potential solutions. You don't decide up front that there are no stumbling blocks.
If Perth/Dolphin equity was worth as much as you seem to believe, why did Faroe withdraw/relinquish their interests in the Perth & Lowlander fields (ref their annual reports) rather than sell them to the highest bidder? Withdrawal/relinquishment normally only happens when a company can't find a buyer.
Technical developments continually take place, but I'm not aware of any CO2/H2S processing solutions that have changed it from being a massive challenge to being "a doddle". Which "dramatic changes" are you referring to?
Scott "has plenty of room for any modifications needed"? Not when I was last on board. On what basis do you state that there is plenty of room?
As I said, Perth/Dolphin may eventually get developed, but it will be a long, expensive process that will require deep pockets.
If Perth/ Dolphin was worthless then no company would have taken the license.....the difference between CO2 and H2S system packages over the last few years has changed dramatically...... besides the Scott platform is massive and has plenty of room for any modifications needed. There does not appear to be a stumbling block if they carrying out studies for a subsea tie back. This is 2018 not the 1900s.
The Scott platform is looking to survive and it appears Tom Cross has given it the kiss of life.
Investors need to put recent announcements in context. Parkmead have ended up with 100% of the Perth/Dolphin equity because Faroe Petroleum couldn't see a profitable future for the asset, despite several development studies having been conducted over the years. Nexen themselves owned equity in the field and got rid of it a few years ago, so I don't see them rushing to get back in. Perth owners have been looking to develop the field for about 30 years now, the biggest stumbling block being the extremely high CO2 & H2S levels which cause massive environmental and technical challenges, particularly for host platforms like Scott that were not designed to accept these products. If it was a case of "10km pipeline tie in to the Scott platform that's a doddle" it would have been done a decade or two ago. If Perth/Dolphin do eventually get developed it will still be a long, expensive development process that will require very deep pockets.
Oil and gas company Parkmead has taken over full ownership of the Perth and Dolphin oil fields in the UK Central North Sea and is considering potential subsea tie-back to Nexens Scott platform.
The Perth and Dolphin fields lie at the core of Parkmeads Greater Perth Area (GPA) oil hub project. The company said on Wednesday it has increased its equity in these licenses from 60.05% to 100%.
Parkmead has also signed an agreement with Nexen Petroleum, a subsidiary of CNOOC, to conduct a detailed engineering study in relation to the potential subsea tie-back of the Greater Perth Area project to the Nexen-operated Scott platform and associated facilities in the UK Central North Sea. The Scott facilities lie just some 10km southeast of Parkmeads GPA project.
In addition, Parkmead has commissioned a new reservoir study with AGR Tracs International in relation to well stimulation, which could lead to increasing oil flow rates and oil reserves recovery from the two fields by analyzing the effect of fracture stimulation on the reservoir.
The Perth and Dolphin fields are located across Blocks 15/21a, b, c and f & 14/25a in Licences P.218, P.588 and P.2154. Parkmeads equity increase in these licenses has driven a 63% increase in the companys 2P reserves from 28.4 MMBoe to 46.3 MMBoe.
The Scott field lies approximately 10km southeast of Perth and is operated by Nexen. Parkmead explained that a tie-back of the GPA project to the Scott facilities could yield a number of mutually beneficial advantages for both the Scott partnership and Parkmead. Utilization of this export route has the potential to transform the GPA project commercially and economically, dramatically reducing the capital expenditure required to bring the GPA project onstream and operating costs thereafter, according to the company.
The study with Nexen will specifically be looking at the detailed engineering of the tie-back, including topside modifications and processing at Scott, as well as caisson design work.
Subsea 7 and Ingen, a subsidiary of Amec Foster Wheeler, will be providing additional technical expertise during the study.
New reservoir study
Parkmead has also commissioned a new reservoir study with AGR Tracs International in relation to well stimulation. The outcome of this study could substantially increase the predicted recovery factor of the two fields by analyzing the effect of fracture stimulation on the reservoir, Parkmead explained.
The Perth field benefits from having a very large volume of oil-in-place, which stands at 197 MMBbls for core Perth, and 498 MMBbls when including the northern areas of the field. The Perth reservoir has a gross oil column of c.2,000 feet, making the reservoir ideal for fracture stimulation.
Perth and Dolphin are located in the Moray Firth area of the UK Central North Sea, which contains very large oil fields such as Piper, Claymore and Tartan. Perth and Dolphin are two substantial Upper Jurassic Claymore sandstone accumulations that have tested 32-38° API oil at production rates of up to 6,000 bopd per well.
At Perth, the Claymore Sandstone forms a combined structural-stratigraphic trap, onlapping the Tartan Ridge to the North, with a southward-thickening and dipping sandstone wedge. The sandstones that comprise the accumulation were deposited as deep-water turbidites sourced from the Halibut Horst, with a minor contribution from the Tartan Ridge.
Advancing the GPA
Parkmead made a number of growth steps during 2017 in relation to the GPA project. An invitation to tender was announced to the service provider market, covering the pre-FEED, FEED and subsequent development phases of the project. Parkmead also reported that 13 alliance submissions were received, comprising 35 companies, across all project components of drilling, subsea construction and export route options. After evaluating the proposals, Parkmead said it is holding onward discussions with a number of serv
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