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    UK's Parkmead Returns in Profit


The North Sea-focused operator attributed its higher earnings to low-cost gas production off the Netherlands.

by: Joseph Murphy

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UK's Parkmead Returns in Profit

North Sea gas producer Parkmead Group managed a £4.8mn ($6.2mn) profit in the year ending June 30, a marked improvement from the previous 12 months, when it booked a £5.9mn loss.

Revenues climbed 18% to £8.3mn, the London-listed company said in a report published on November 15, while cash flow from operations soared 59% to £4.7mn. Operating income came to £5.1mn, versus a £5.3mn deficit a year earlier.

Parkmead attributed its higher earnings from its low-cost gas production in the Netherlands, where its operating expenses averaged $11.9/boe. Output at the Diever West gas field rose by 13% to 7,676 boe/day in the year ending September 30.

The company’s exploration and evaluation expenses came to only £0.2mn in the period, compared with £5.2mn previously, while administration expenses dropped to £1.5mn from £1.7mn.

Parkmead also raised £6.2mn from the sale of its shares in Faroe Petroleum to Norway’s DNO back in January.

Last month the company reported that development plans had been filed for a new gas project in the UK southern North Sea. The Platypus field, operated by Dana Petroleum, is expected to flow 47mn ft3/day at peak production. A final investment decision is scheduled for the second quarter of 2020, followed by first gas in the first quarter of 2022.