THE Parkmead business run by oil and gas entrepreneur Tom Cross is eyeing further acquisitions in the UK North Sea after its production operations moved into profit amid tough trading conditions.

The Aberdeen-based firm made a gross profit of £672,000 in the six months to 31 December compared with a £4.1 million loss in the same period of the preceding year.

The turnaround was achieved despite the significant drop in oil prices, which Mr Cross said was the main factor behind a sharp fall in revenues to £2.7m from £7m.

Mr Cross, who developed Dana Petroleum into a £1.9 billion business with a big North Sea portfolio, noted Parkmead is achieving good returns from the gas assets it has acquired in the Netherlands.

These are producing gas at $14 per barrel oil equivalent. Brent crude traded at around $50.50 per barrel yesterday.

Parkmead is evaluating assets in the Netherlands and the UK North Sea under its active acquisitions policy .

Mr Cross has said the downturn triggered by the crude price plunge that started in 2014 has presented opportunities for Parkmead to buy North Sea assets at attractive prices.

Parkmead bought stakes in three big North Sea finds from Atlantic Petroleum in the first half.

“Parkmead is well positioned to take advantage of the ongoing lower oil price and the opportunities that are arising,” said Mr Cross.

The group had $32.7m (£26.7m) cash at 31 December. It lost £4.5m before tax in the first half, in line with the same period last time.

Shares in the firm closed up 1.75p at 45.25p on the Aim market.