Parkmead increases equity in Perth and Dolphin fields

The AIM-traded firm said the Perth and Dolphin fields lie at the core of its Greater Perth Area oil hub project, with the company increasing its equity in the licences to 100% from 60.05%.

Parkmead said it also signed an agreement with Nexen Petroleum, a subsidiary of the China National Offshore Oil Corporation (CNOOC), to conduct a detailed engineering study in relation to the potential subsea tie-back of the Greater Perth Area project to the Nexen operated Scott platform and associated facilities in the UK Central North Sea. The Scott facilities lie just some 10km southeast of Parkmead's GPA project.

In addition, the company commissioned a new reservoir study with AGR Tracs International in relation to well stimulation, which it said could lead to increasing oil flow rates and oil reserves recovery from the two fields by analysing the effect of fracture stimulation on the reservoir.

“We are delighted with the significant progress we have achieved with the Greater Perth Area project,” said Parkmead executive chairman Tom Cross.

“By increasing our stake in the Perth and Dolphin oil fields, Parkmead's oil and gas reserves grow by some 63%.”

“The study with Nexen will examine one path to potentially unlock the substantial value of the GPA project for the benefit of the UK and Parkmead shareholders, as well as providing further value for the existing infrastructure partners.”