Parkmead offered three new licences in 32nd round

The AIM-traded firm said the first of the provisional awards covered blocks 14/20g and 15/16g, with Parkmead holding 50% as operator, situated in the Central North Sea, adjacent to its extensive Greater Perth Area.

It said the blocks contain two undeveloped oil discoveries, Fynn Beauly and Fynn Andrew, as well as an oil prospect in the Piper Formation.

Fynn Beauly was described as a “very large heavy oil discovery”, up-dip from the Lowlander oil field, where Parkmead holds 100%.

The entire discovery extends across a number of blocks, and was estimated to contain oil-in-place of between 602 and 1343 million barrels.

Blocks 14/20g and 15/16g contain a section of the discovery to the south, with oil-in-place of between 77 and 202 million barrels.

The second discovery, Fynn Andrew, is wholly contained on the offered blocks and holds 50 million barrels of oil-in-place on a P50 basis.

Parkmead said its proposed work programme included seismic reprocessing and technical studies, and confirmed that its partner on the offered blocks was Pharis Energy.

The board said the addition of the blocks to its portfolio would add 34.4 million barrels of 2C resources to the group.

In addition, the firm said two further licences had been offered as part of the 32nd round, with the first being block 14/20c on a 100% basis, located in the Central North Sea containing extensions to the Lowlander oil field and the Fynn Beauly oil discovery.

The second was block 42/28g, also on a 100% basis, situated in the Southern North Sea near the Tolmount gas discovery.

Parkmead said it would now evaluate the offered awards and how they complement its “significant and growing” energy portfolio.

“These awards demonstrate the strength of Parkmead's energy expertise and have the potential to extend the company's asset base as we develop into a balanced energy group,” said executive chairman Tom Cross.

At 0847 BST, shares in the Parkmead Group were up 1.49% at 34p.