Parkmead takes control of oil prospects

Parkmead Group has took full control of two prospects on one of its North Sea projects.

Parkmead has purchased the 39.95% it did not own in the Perth and Dolphin fields from Faroe Petroleum for an undisclosed sum. The gas and oil company have also commissioned an engineering project with Nexen, to see if nearby infrastructure at the Scott platform could be used to develop a hub around the Greater Perth Area in the Moray Firth.

Shares in Parkmead rose 5.96% to 41.8p.
Purchasing the additional stakes in Perth and Dolphin has increased its possible oil reserves from 28.4 million barrels to 46.3 million barrels.

Parkmead are so confident in the Greater Perth development that they have 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 study will be over the next ten weeks and will look at ways to connect to the Scott platform, which lies six miles outside the Perth area.

Parkmead’s Chairman, Tom Cross, said that they plan on reducing the upfront and operational costs of the Perth development by using the existing production facilities on the Scott field.

Mr Cross said: “We are delighted with the significant progress we have achieved with the Greater Perth Area project. By increasing our stake in the Perth and Dolphin oil fields, Parkmead’s oil and gas reserves grow by some 63 per cent.”