OIL industry entrepreneur Tom Cross has declared his latest venture, Parkmead Group, is on course to become a key exploration and production player in the North Sea and elsewhere in Europe, and highlighted his appetite for further acquisitions.
Mr Cross also said Aberdeen-based Parkmead's recent success in securing interests in 25 offshore blocks across the UK Continental Shelf (UKCS), in the Government's 27th licensing round, would "significantly increase Parkmead's asset base in the UK and complete what had been an exceptional year for the company".
He meanwhile highlighted his belief that fellow Aberdeen-based oil and gas independent Faroe Petroleum, in which Parkmead holds a stake, "has long-term upside with an ongoing drilling programme and a broad portfolio of exploration licences".
He noted the value of Parkmead's stake in Faroe had fallen to £6.5 million at June 30, from £7.1m a year earlier. This resulted from a fall in Faroe's share price from 161p to 148p over the 12 months to June 30.
Mr Cross noted Faroe's shares had fallen to 148p at June 30 "after an unsuccessful result" at its first operated well in Norway, targeting the Clapton prospect.
Announcing its results for the year to June, Parkmead said yesterday its agreement of four acquisitions in seven months had created a "balanced port-folio of assets across the UKCS and onshore Netherlands".
Mr Cross declared that Parkmead's reserve base had been "transformed" in the past 12 months. He highlighted "rapid growth" in its proven and probable oil and gas reserves to 25.1 million barrels of oil equivalent at October 31.
Acquisitions have included the purchase of North Sea player DEO Petroleum, which was completed in August 2012.
Mr Cross noted that Parkmead had been able to add production to its portfolio "within the first year of establishing the oil and gas team" at the company.
He said: "As we look ahead into 2013 and beyond, the group has a continued appetite for acquisitions and will look to add reserves through its active drilling programme. We believe the group has created a strong platform to become a key E&P (exploration and production) player in the North Sea and elsewhere in Europe."
He also highlighted recent "excellent drilling results" from the Platypus appraisal well in the UK southern North Sea.
Mr Cross built up Aberdeen-based oil and gas company Dana over 14 years and made about £57m from this company's £1.87 billion, 1800p-a-share sale in autumn 2010 to the Korea National Oil Corporation.
He has been joined at Parkmead by some of his former colleagues at Dana.
Shares in Parkmead edged up by 0.25p to 14p yesterday in the wake of its full-year results. This gives the company a stock market worth of about £107m. The shares were trading around 1.6p before Mr Cross's appointment as executive chairman was announced in October 2010. They traded above 30p in late December 2010.
In addition to the exploration and production business it is building, Parkmead has a sub-sidiary called Aupec, which continues to perform oil and gas industry benchmarking and petroleum economics work for energy companies and governments.
Parkmead's operating loss widened to £4.7m in the year to June 30, from £3.6m in the prior 12 months, as revenues fell from £3.7m to £2.9m, and administrative expenses edged up from £5.3m to £5.5m.
The company's net asset value rose to £12.3m at June 30, from £9m a year earlier. Parkmead raised equity of £8.53m in March. By June 30, Parkmead had drawn £2.9m of its £8m loan facility from Mr Cross.
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