http://www.parkmeadgroup.com/news/latest_news/parkmead_completes_acquisition_to_treble_its_stake_in_the_athena_oil_field/

I think the extra shares are already priced in..IF not there will be bargains to be had here. IMO DYOR

EARTHLY

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inShare.
Shares soar on news of Faroe drill success






Scott Wright

Group business correspondent.

Friday 11 April 2014



SHARES have soared in Aberdeen-based Faroe ­Petroleum by more than 8% after it reported a successful drill stem test in the Pil exploration well of the Norwegian Sea.


















Faroe, which holds a 25 per cent, non-operating stake in the licence, declared the find "builds substantially" on its discovered volumes within tie-back distance of the Njord production facility.

It follows recent ­exploration success scored by Faroe in the Snilehorn and Solberg discoveries in the Norwegian Sea.


AIM-listed Faroe said operator VNG Norge AS will now start a sidetrack to prove the lateral extent of the Pil discovery.

The company said this will be followed by a further sidetrack to assess the potential of the neighbouring Bue target. Faroe predicted both sidetracks have the potential to increase the preliminary estimate of the discovery's recoverable resource.

News of the Pil test led analyst Panmure Gordon to raise its target price to 200p from 190p, while retaining its recommendation to buy the stock.

Faroe chief executive Graham Stewart said: "We are very pleased to announce the results of this highly successful drill stem test on the Pil discovery, which considerably exceed expectations and significantly de-risk further prospectivity for this reservoir package in the licence.

"The Pil well builds substantially on Faroe's discovered volumes located within tie-back distance of our Njord infrastructure.

"We look forward to the results of the two sidetracks and proving up further potential on this licence."

He updated investors on its exploration and appraisal programme elsewhere, noting that results on drilling at the Butch East exploration well, next to the Butch Main discovery in the Norwegian North Sea, are expected in the coming weeks.

Meanwhile, fellow exploration and production specialist Parkmead Group has hailed the completion of its acquisition of an additional 20% interest in the UK licence containing the producing Athena oil field from EWE.

Parkmead, led by executive chairman Tom Cross, had already held a 10% interest in the Athena field, in the Outer Moray Firth, through its acquisition of Lochard Energy Group, completed in July.Mr Stewart declared recent results achieved by the Faroe exploration team in the Pil, Snilehorn and Solberg licences signals the value to shareholders in its long-term strategy of taking stakes in high-impact exploration prospects.

He updated investors on its exploration and appraisal programme noting that results on drilling at the Butch East exploration well, are expected soon. He hailed the deal as Parkmead's most important because of the positive impact it will have on the group's oil and gas production base, revenue and cash flow.




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"LSE:FPM:Faroe Petroleum announced a gas and condensate discovery in the Solberg well and a successful Drill Stem Test (DST) on a Pil exploration well on Thursday, which saw its share price rise by over 10% in morning trading.The shares initially ..."

http://www.iii.co.uk/node/159939
_____________

EARTHLY

looks as if our investment in FPM is giong to pay off after all...

The Purchase of 20% of the Athena fields seems to have been a bargain.
If you compare the cash and shares changing hands with the original purchase price you can see that the revenue produced by PGM since acquisition has all but paid the consideration for the deal.
Admittedly PGM will have to stump up some extra capital to pay its share of investment in the Athena field, but should then be generating $100k/day of cash!

Thanks to chappi10 from the xcite board

working towards in my opinion, below are the average EV's of North Sea oil producers (as at 22nd May 2013, so will be incorrect today, but just to illustrate how N/S producers value out on assets):

Enquest EV 2P boe $13.2 per barrel

Faroe EV 2P boe $12.9 per barrel

Ithaca EV 2P boe $12.7 per barrel

Parkmead EV 2P boe $7.4 per barrel

Premier Oil EV 2P boe $14.4 per barrel

Sterling EV 2P boe $7.0 per barrel
___________________

EARTHLY

how can this be valued at £300mill ... its a joke. 30 times revenue.. look at SMDR. turnover £300mill market cap £260mill.. absolute bargain in comparison to this.
GLA

Charles Stanley too its on the parkmead website target £3.80.

Initiates buy rec target price of £4.00
jr

Oil & Gas UK announced Tuesday that it has launched the first phase of a project that aims to stimulate more exploration by promoting new and existing plays on the UK Continental Shelf (UKCS). The trade body said it has commissioned SLR Consulting to complete a three-month preliminary study that will result in an exploration road map for the region. Oil & Gas UK Operations Director Oonagh Werngren commented in a statement: "The aim of the 21st Century Exploration Road Map is to contribute to improving exploration success and address the 50-percent decrease in the number of wells drilled. The outcome of the preliminary study will provide industry with the specifications for a subsequent implementation project to deliver an on-line, more dynamic source of digital geological maps summarizing current subsurface understanding and the hydrocarbon resources potential within key areas of the UKCS. "The project is one of several being driven by the PILOT Exploration Task Force, which works together with the Department of Energy and Climate Change (DECC), to revitalize exploration and ensure the economic recovery of oil and gas resources from the UKCS. It aligns with the recommendations put forward by the recent Wood Review, which identifies the urgent need to evaluate new and unexplored reserves and create an up-to-date perspective of the geology of the UKCS together with tools to ensure more effective sharing, and updating, of data across the industry." Oil & Gas said the initiative is being supported by the UK Department of Energy and Climate Change, the British Geological Survey, the National Environmental Research Council and Common Data Access, as well as exploration companies, operators and oilfield services firms. - See more at: http://www.rigzone.com/news/oil_gas/a/132365/Oil_Gas_UK_Launches_Project_to_Boost_UKCS_Exploration#sthash.1XuP7m96.dpuf
_________________

EARTHLY

"Major Tom bet your boots on it !"
More of your boiler room tactics coming out. We all know what happens when you are so certain of things. Hope not too many take any interest in what you say and believe that you know what your talking about
-------------------------------------------------
Glad to see you are well. There is a cure for most !

I wonder if there might be some sort of XEL deal with more than one smaller company.
Perhaps PMG & Enquest involved?

"Major Tom bet your boots on it !"
More of your boiler room tactics coming out. We all know what happens when you are so certain of things. Hope not too many take any interest in what you say and believe that you know what your talking about

Earthly
Yes a tie in is the more likely option.

Zulu
Anything is possible at this stage , but personally think that TC will pull something from the hat sooner than later... could be a tie in with xel but not neccessaryly a T/O.

EARTHLY

Some ones pulling Ruperts strings as Xel don't even have a production team. Parkmeads production team are hardly overworked..... I will be surprised if Parkmead does not have a stake interest in Xel. What size ?

In regards to your question of XEL, my take would be that TC has built his model on his previous experiences, and has taken his team who understand those core engineering, economical principals?
I feel an "investment" could possibly be towards that direction with XEL, same as Pharos?
HVO,,,, totally different ball game than O&G, same as HPHT wells,,,however the technology to recover could be an investment attraction,,,,,, and the recent tax incentive?
Alimho,,,,,

Csz,
You've said for a long time that statoil weren't playing ball and it looks that way for now.
Xel say they are now in the process of choosing their preferred partners after engaging with service providers.
When you say TC will be involved how do you see it?
Jm x

ps what do you think about xel's sp performance over the last couple of days ? I finally bought in there, are you still there ? !!!
-------------------------------
Yep still in..... No majors interested they are saying ! Think they are forgetting ground control is in communication.

Major Tom bet your boots on it !

apology typo error taken over not taking over.

ERTHLY

Now we know why he bought a Castle with a moat.and drawbridge..obviously to keep companies wishing to be taking over knocking on his door..unless the like getting their feet wet. LOL

EARTHLY


ps what do you think about xel's sp performance over the last couple of days ? I finally bought in there, are you still there ? !!!

Parkmead boss plans further acquisitions
Published on 29 March 2014


Mark Williamson
OIL and gas entrepreneur Tom Cross has signalled he will gear up Parkmead Group for more acquisitions after the North Sea-focused company unveiled its first profit under his leadership.

Aberdeen-based Parkmead made £3.1 million pre-tax profit in the six months to December after losing £2.8m in the same period of the previous year.

The result provided a fillip for Mr Cross, who wants to grow Parkmead into a force to rival the success of the Dana Petroleum business he built.

Mr Cross became executive chairman of Parkmead in November 2010, shortly after Dana Petroleum was sold to Korea National Oil Corporation for £1.9 billion. He netted around £57m for his holding in Dana.

Hailing the move into profit, Mr Cross said Parkmead had reaped the rewards of its decision to buy producing assets in the North Sea.

He highlighted the increase in production which followed the acquisition of Lochard Energy in July.

This gave Parkmead a stake in the producing Athena oil field.

Mr Cross indicated he wants to do more such deals. He said: "As Parkmead progresses through 2014, the Group will continue to explore acquisitions that add further reserves and production to the Group."

Parkmead said it is in advanced discussions with lenders regarding debt facilities to increase its financial firepower and further strengthen its balance sheet.

The Aim-listed company raised £40m from investors through a share placing in February. The results may help boost Mr Cross's reputation as a deal-maker.

The £3m profit figure was stated after the company booked a £5m gain on the Lochard deal.

This allowed Parkmead to acquire assets which it valued at £19.17m for shares in the firm worth £14.7m when they were issued.

A group of rebel shareholders in Lochard had said Parkmead's all-share offer "materially" undervalued the company.

Mr Cross noted the exploration potential of the North Sea.

He said: "Parkmead will continue to invest heavily in licensing round applications as a key element in the Group's strategy to build an attractive and balanced portfolio that offers considerable exploration upside."

It is preparing applications for the forthcoming UK Licensing Round.

The company was awarded five blocks in the 27th UK round.

Parkmead made a gas find in the first half with the Pharos well, which it is evaluating. It aims to develop the Platypus gas find.

The company is working with Faroe Petroleum on a plan to develop the Perth and Lowlander fields. Parkmead has a 1.8% stake in Aberdeen-based Faroe which it valued at £4.6m at 31 December.

Production from Athena helped Parkmead grow turnover to £9.9m in the first half, from £2m last time.

In December Parkmead acquired a further 20% holding in Athena, from EWE, for around £7m. The deal has yet to complete.

Analysts at Numis Securities told clients that Parkmead made significant progress during 2013.

Last month's placing was completed at 255p per share.

Shares in Parkmead Group closed down 5p at 240p.



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Reads pretty much the same as yesterday's

Mr Cross said he was confident that Parkmead would continue to grow. We know what we are doing - we have been here before. We have a very concentrated business model.

Tom Cross
Parkmead posts maiden profit as Cross eyes further UKCS expansion
Iain Hepburn, 28th March 2014

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2

Related Articles
Parkmead snaps up first producing assets
Parkmead is 'next Dana' as value of oil firm tops $250m in two years
Parkmead in new share placing
Dana Petroleum makes new North Sea gas find with Pharos wildcat
Ambitious North Sea independent Parkmead has delivered its first profit after seeing its asset base double inside a year.

The firm, taken over by Tom Cross three years ago, has gone from having no oil and gas assets in 2011 to becoming a significant presence in the North Sea.

Now the company has posted a £3.1million pre-tax profit after a year of increased growth and snapping up producing assets on the UK Continental Shelf.

The half-year profit to the end of 2013, compared to a £2.7million loss during the same period in 2012, came before the firm’s oversubscribed £40million share issue last month.

“Parkmead has significantly increased its oil and gas production, delivering enhanced cash flow to the Group,” said Mr Cross.

“This has been achieved through two key acquisitions of UK producing assets and Parkmead has generated a maiden profit before tax of £3.1million.”

The firm took a 30% stake in the Athena field last year, after taking over Lochard Energy Group and buying an increased stake from EWE Vertrieb, and recorded its first oil revenues from the field.

It also picked up five new licences in the 27th round last year, bringing its interests across the UKCS to 30 prospects, with work underway on mapping the sites on the North Sea and West of Shetland.

Cross, who built up Dana Petroleum before selling it for £1.7billion in 2010, said the company would look to invest heavily in applications for further blocks, beginning with the 28th round in April.

The potential for a significant gas find at the Pharos prospect, where Parkmead is a stakeholder, is also expected to be determined this year as data from analysis of the discovery is reviewed.

That work, and further exploration, will be funded through February’s £40million share placement, which will help cover future costs.

“The discovery at Pharos could add further value to the Platypus gas field, strengthening Parkmead’s position in the UK Southern Gas Basin,” said Cross.

“The company was pleased and encouraged by the support it received from a number of high quality institutional investors.

“This new financing has put Parkmead in a strong position to deliver additional growth.”

Read analysis of Parkmead’s success in tomorrow’s Press and Journal

Leave a Comment

There is to be an analysis of PMG's progress to date in tomorrow's Press and Journal . Most likely it will be good publicity .

EXTRACT

Tom Cross, Executive Chairman of Parkmeadcommented:

"I am delighted to report excellent progress in the period to 31 December 2013. Parkmead has significantly increased its oil and gas production, delivering enhanced cash flow to the Group. This has been achieved through two key acquisitions of UK producing assets and Parkmead has generated a maiden profit before tax of £3.1 million.

Parkmead has also been driving ahead its exploration portfolio, with the successful gas discovery at Pharos and the award of five additional oil and gas blocks under the UK 27th Licensing Round. The discovery at Pharos could add further value to the Platypus gas field, strengthening Parkmead's position in the UK Southern Gas Basin. The award of additional acreage in the UK 27th Round, bringing the total blocks awarded to 30, capped an important year of exploration activity for the Group.

In February 2014, Parkmead completed a highly successful and oversubscribed placing, raising approximately US$66.0 million. The Company was pleased and encouraged by the support it received from a number of high quality institutional investors. This new financing has put Parkmead in a strong position to deliver additional growth."
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EARTHLY

TC became interested in xel the this SP needs to move up to around the £4 to £5 mark..IMO

EARTHLY

That's a bit rich coming from you who posted buys every month yet is sitting in profit having suddenly claimed to have traded it a few times? Not that anyone believes you did of course
Was the last question about options to step up to the gas supplies issue to hard for an answer hahaha

One thing and does another...can't be right...can it ?

Budget 2014: Osborne accused of ignoring Wood plan
George Osborne has ordered a full review of North Sea taxes – but he will still press ahead with a £1billion raid on the oil and gas industry.


EARTHLY

Ps perhaps this may be 1 reason for the downward pressure on the sp.

earthly
A steady build will suffice.

EARTHLY, just what is there that TC and others can do in the circumstances?
If gas supplies are to be an issue, then the only way to help is to find more gas and get it into production IMO. This will not happen in time for this next winter

As the Crimean situation intensifies the importance of the security of GAS supplies this next winter will TC with others in the industry rise to the potential looming crises

apologies, No , I don't suffer a stammer. to the to the in my previous posting.

EARTHLY

As the Crimean situation intensifies the importance of the security of GAS supplies this next winter will TC with others in the industry rise to the to the potential looming crises

EARTHLY

The footsie ended down yesterday by 32.15 points -0-49% at 6573.13 budget day blues and continuing Crimean influence.

Although our SP along with others in the sector were in negative territory this was showing on the London Stock Exchange;

FTSE AIM All-Share - Oil & Gas

2,678.58

2,747.59

+69.01

+2.58%

No Rhyme nor reason at this stage...

EARTHLY

Dhsssv. Thanks for technical view.Much appreciated.

If PMG were to farm in and share development costs on an HPHT project the new tax regime would be of great benefit.
CAPEX is considerably higher. HPHT is usually defined as reservoir over 300F temp and over 10,000psi. Big CAPEX increases from the producing well, any subsea works right through the process plant to export pipelines as opposed to conventional wells.

:
Does anyone with technical knowledge know if the below announced in the budget will have any implications for PMG.
Any help appreciated.
"New allowance for ultra high pressure, high temperature oil field for North Sea oil and gas."

No worries. Got them now.

tradingup
Thanks for your thumbs up. whatever the outcome in the latest safety valve area in the world to release international pressures.. looking slightly to the longer term (next winter) people / governments will need security of energy supplies to stave off threats from outside influences...gas of course being a major factor people need to keep warm..so TC is also very much in touch with that scenario to the enth degree...so whilst others are chasing their tails this company is ploughing a steadfast future in the North Sea and elsewhere around our shores to bolster not only the companies assets., but in doing so assure pi's of a healthy return on their investment. DYOR IMO

EARTHLY

As a previous Dana investor do you or anyone have its graph history? It's strange we may be bobing along like this for a few years. Hopefully not.

EARTHLY. You are absolutely on the money. No good to look at a share in isolation. We are experiencing a global sell off and it may yet get worse. I am a long term holder of PMG and
think under present circs it is holding up well.,

I think also we have to note that the market is still way below its 14 year high and many good
quality stocks are not doing well. I just checked my SBRY held for more than 20 years and even
with divs re-invested there has been hardly any capital growth.

I think PMG will deliver but people should not get too impatient. I did years ago when I sold by Dana holding just before it took off!