Parkmead agrees to buy historic royalties associated with existing interests

Independent energy group Parkmead has agreed to purchase a historic royalty associated with its existing interests in several licenses in the Netherlands from Vermilion Energy.

Parkmead said the acquisition, linked to its existing interests in the Drenthe IV, Drenthe V and Andel Va licenses, contained the Grolloo, Geesbrug and Brakel onshore gas fields, respectively.

The royalty, previously held by a Shell and ExxonMobil joint venture, will be purchased for €565,000, satisfied through a part cash payment of approximately €150,000, with the balance being paid from part of the remaining 2021 net revenue from Parkmead's working interest in the Geesbrug gas field.

As a result of the acquisition, Parkmead will increase net gas production from the wells, doubling its effective financial interest from 7.5% to 15%.

The AIM-listed group also expects the acquisition to extend the producing life of the fields through greater partner alignment.

Chairman Tom Cross said: "This innovative deal enhances our gas interests in the Netherlands and adds significant value to Parkmead.

"We continue to build a portfolio of high-quality energy projects through acquisitions, organic growth and active asset management."

As of 0945 BST, Parkmead shares were up 5.71% at 52.75p.