THE Parkmead Group run by Tom Cross is celebrating success in the North Sea after making a discovery with a well it drilled alongside the Dana Petroleum business he developed.

Mr Cross took charge at Parkmead soon after the £1.9 billion hostile takeover of Dana Petroleum by Korea National Oil Corporation late in 2010.

The two companies have found gas with the Pharos well, drilled on acreage Mr Cross knew at Dana. Parkmead bought into the licence in the southern North Sea in 2011.

Neither company gave an estimate of the amount of gas Pharos, 95 miles north west of Great Yarmouth, might hold.

However, Parkmead noted the chances of the find being commercial were boosted by the fact it might be possible to develop it with its existing Platypus discovery nearby.

Mr Cross said: "This success could add significant further value to the Platypus gas field, strengthening Parkmead's position in the UK Southern Gas Basin."

Last week the oil and gas entrepreneur said Parkmead Group was eyeing a return to the acquisition trail after using a series of deals to build a business he believes can achieve rapid growth.

Paul Griffin, Dana's UK managing director said Pharos is well located to take advantage of a number of gas export options.

He added: "This is the fifth North Sea exploration and appraisal well that Dana has drilled as Operator or in partnership during 2013."

Dana has a 35% interest in the Pharos licence; Parkmead has 20%; Hansa Hydrocarbons, Dyas Exploration UK and MPX North Sea have 15% each.