Parkmead Takes 15 Percent Stake in North Sea Blocks

Parkmead Group Plc today announced its acquisition of a 15 percent stake in North Sea blocks 48/1a, 47/5b and 48/1c. The blocks contain the Platypus gas field and the Possum gas prospect.

Parkmead made the agreement with Exxon Mobil subsidiary, XTO UK Ltd. 

The Platypus Rotliegendes gas accumulation was first discovered by operator Dana Petroleum in 2010, who hold a 45 percent stake in the project. The Parkmead Group team involved in the project consists of former Dana Petroleum staff, before the company was sold to Korea National Oil Corporation (KNOC).

Dana discovered the gas potential in the 48/1a-5 well, which encountered 218 vertical feet of gas bearing sands. That well was suspended in 2010, though it may be used for future re-entry and use as a gas production well.

Parkmead puts the potential gas supply in the Platypus gas field at 180 billion cubic feet. It also estimates the gas in the Possum structure, immediately adjacent to the Platypus gas field, at 100 billion cubic feet of gas.

Parkmead says the acquisition will be instrumental in developing the company's first stage of development to become a significant new independent oil and gas company.

"The Platypus and Possum areas are a valuable addition to Parkmead," Chief Executive of Parkmead, Tom Cross said. " We know the geotechnical aspects of these blocks intimately and believe they contain the potential for significant upside."

Cross provided a loan of £8 million to Parkmead to enable the acquisition.