REG - Parkmead Group (The) - Formal Award of UK Licence P2634

ParkmeadAnnouncement

19/07/2024 10:45

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RNS Number : 0122X  Parkmead Group (The) PLC  19 July 2024

19th July 2024

 

The Parkmead Group plc

("Parkmead", "the Company" or "the Group")

 

Formal Award of UK Licence P2634

Parkmead, the independent energy group focused on growth through gas, oil and
renewable energy projects, is pleased to announce that further to the
provisional award of three blocks as part of the 33rd UK offshore licensing
round, the P2634 licence has now been formally awarded to Parkmead by the UK
Government's North Sea Transition Authority (NSTA).

The licence is situated in the Outer Moray Firth and comprises blocks 14/15a,
14/20d and 15/11a. Parkmead (50% interest and operator), together with its
joint venture partner Orcadian Energy (50% interest) will leverage expertise
gained in developing challenging crudes to work towards commercialisation of
Fynn Beauly, one of the UK's largest undeveloped discoveries. This heavy oil
accumulation has been proven by three wells and is estimated to contain
oil-in-place of between 740 million and 1.33 billion barrels.

The partnership will now begin to progress the approved three-year work
programme to determine whether a technically and economically viable
development can be delivered within the NSTA's Net Zero Strategy. By
undertaking geophysical, geochemical, reservoir modelling and production
technology studies, the work will assess the feasibility of reducing oil
viscosity using enhanced oil recovery techniques. This will include the
potential combination of polymer flooding with geothermal heat uplift to
improve recovery.

 

Parkmead's Executive Chairman, Tom Cross, commented:

"Parkmead's Board is very conscious of the current uncertainties around the
new UK Government's intentions in respect of future oil and gas projects and
developments in the UK North Sea. However, Parkmead sees the award of the Fynn
licence as an opportunity to deliver significant value to shareholders. The
team will evaluate whether it can deliver a commercial development of the
major Fynn Beauly accumulation that also meets the overarching net zero
objectives that are key to obtaining the relevant regulatory approvals. The
Board believes that this licence offers Parkmead and its investors access to
huge potential upside, via one of the largest remaining oil resources left on
the UK continental shelf"

 

 

 The Parkmead Group plc                                    +44 (0) 1224 622200
 Tom Cross (Executive Chairman)
 Andrew Smith (Executive Director - Business Development)

 Cavendish Capital Markets Limited                         +44 (0) 20 7220 0500
 Marc Milmo / Seamus Fricker - Corporate Finance
 Iain MacArthur - Sales

 

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