AMBITIOUS oil and gas explorer Parkmead Group has seen its half-year losses rise more than 500% as it builds for expansion.

The company, headed by former Dana Petroleum boss Tom Cross, said pre-tax losses increased from £410,283 to £2.64 million in the six months to December 31, 2011.

Total assets grew by 8% in the period to £13.4m although income dipped from £2.1m to £1.3m.

The company acquired stakes in seven North Sea blocks and has since added a portfolio of assets in the Netherlands.

Mr Cross, executive chairman, said the business was well positioned for the future having raised funds and brought in a new team to deliver growth plans.