Rig on the way to Parkmead's next Dutch wells

The AIM-traded firm said the LDS wells would target multiple Rotliegendes gas reservoir prospects from the existing Diever well site, which was already in production.

Construction work to facilitate the potential tie-in of the new wells was largely complete.

A successful drilling outcome would result in new fast-track production, adding “significant” additional revenue and cash flow for Parkmead, the board said.

It anticipated that the results of the first LDS well would be known around the end of the year, with the second being known in the first quarter next year.

The LDS wells formed part of Parkmead's interests in the Dutch Drenthe VI concession.

Parkmead said the concession also contains the Diever gas field, which remained in the top three most prolific producing onshore fields in the Netherlands.

Further follow-on prospects had also been identified.

“We are delighted to announce that rig mobilisation is underway, and drilling of our LDS prospects will commence shortly,” said executive chairman Tom Cross.

“Success at these wells aims to underpin Parkmead's existing production from the Diever well site, which has proven to be one of the most prolific onshore producing fields in recent times.”

Cross said the Dutch assets were a “key focus” for Parkmead, as it looked to continue building on “tremendous success” in the region.

“Our company maintains a 100% unhedged strategy therefore benefitting, to the maximum, from the sustained buoyant gas prices.”

At 1323 GMT, shares in the Parkmead Group were up 1.06% at 62.15p.

Reporting by Josh White for Sharecast.com.