NORTH Sea entrepreneur Tom Cross has underlined the potential value of oil projects he is working on after leading the Parkmead Group he runs into the renewable energy market.
Parkmead said last week that it is making progress with plans to develop clean energy facilities such as windfarms on land in Aberdeenshire.
The Aberdeen-based company bought the land in an £8.5m deal completed in 2019, as a growing number of firms in the North Sea supply chain looked to gain a presence in the renewables market. Parkmead said at the time that it recognised the importance of the transition that was taking place in the energy market, supported by legislation, from fuels with a higher carbon content to lower carbon alternatives such as natural gas and renewables.
The company relies on gas fields in the Netherlands for the bulk of its income.
However, Mr Cross has made clear he still sees commercial potential in the black stuff.
Parkmead said yesterday it is actively evaluating further acquisition opportunities in each of its areas of activity, citing renewables, gas and oil.
The company still appears hopeful that it will be able to develop oil fields in the Greater Perth Area (GPA) of the Moray Firth.
“The Greater Perth Area development continues to form a key part of our balanced portfolio of assets,” said Parkmead.
It said the GPA fields could contain up to around 130 million barrels oil equivalent. Production facilities could be tied back to the Scott platform in the area.
READ MORE: Windfarm development near Aberdeen on cards for oil and gas firm
In the latest North Sea licensing round the company acquired an interest in a large undeveloped heavy oil find, Fynn Beauly, that lies close to the GPA fields.
Mr Cross said Parkmead is well-positioned for growth, with around £25m cash on its balance sheet at December 31. The company cut first half losses to £1.5m from £1.7m last time.
The company said the fact it achieved £0.8m gross profit in the first half, despite the historic low gas prices seen amid the fallout from the coronavirus crisis, demonstrated the high-quality nature of its onshore Netherlands assets.
Parkmead bought assets in the Netherlands from Dyas in 2012. Mr Cross took charge at Parkmead after the Dana Petroleum business he developed was acquired by Korea’s KNOC for £1.9bn in 2010.
“Parkmead's early commitment to building a balanced energy business through its focus on gas, widely seen as the primary transition fuel, pre-empted the recent energy transition debate,” said the company yesterday.
READ MORE: North Sea minnow backed by billionaire Buffett eyes acquisitions
Parkmead plans to develop the Platypus gas field in the UK North Sea, with a company owned by US billionaire Warren Buffett.
Shares in Parkmead Group closed up six per cent, 2.1p, at 37.5p on the Aim market.
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