Parkmead Completes Acquisition of Portfolio of Netherlands Onshore Assets
Parkmead, the independent oil and gas company, is pleased to report that it has completed the acquisition of a portfolio of Netherlands onshore assets (the "Assets") from Dyas B.V. for a total consideration of €7.5 million (the "Acquisition"), as previously announced on 8 March 2012, comprising interests in four producing gas fields and two oil fields. These Assets specifically comprise:
- A 15 per cent interest in the Andel V Production Licence, including the two producing gas fields at Wijk en Aalburg and Brakel, as well as the Ottoland oil field development;
- A 15 per cent interest in the Papekop Production Licence, including the Papekop oil field development; and
- A 15 per cent interest in the Drenthe III Production Licence (excluding Vinkega) and the Drenthe IV Production Licence, which together include the two producing gas fields at Geesbrug and Grolloo.
The consideration for the Assets comprises an initial cash payment of €4.5 million for the acquisition of the interests and a contingent payment of €3 million, payable on the first commercial sale of oil from the Papekop field development.
The Acquisition of these assets marks a significant milestone for Parkmead by adding the first producing assets to the Group's portfolio. At the effective date of the Acquisition, 1 January 2012, the Assets were producing at a rate of approximately 2,000 boepd, being 300 boepd net to Parkmead. As the Board of Parkmead looks to build a new independent oil and gas company on an accelerated basis, this Acquisition is of strategic importance with the Group entering production within one year of the oil and gas team being assembled at Parkmead.
In addition, the portfolio being acquired provides Parkmead with near term oil field developments at Ottoland and Papekop with the former forecast to come onstream in 2013. The recent successful extended well test performed on Ottoland during Q4 2011 produced oil at a stable rate from the existing single well on this accumulation. Analysis of the test results will allow optimisation of the development plan, including determination of the number of production wells required to efficiently drain the field.
Tom Cross, Executive Chairman of Parkmead, commented, "We are pleased to have secured stakes in these attractive licence areas that give Parkmead its first gas production and near term oil field developments."