Parkmead Group Completes Agreement to Acquire Interest in UK Southern North Sea

The Parkmead Group plc announced that it has completed an agreement with XTO UK Ltd., a subsidiary of Exxon Mobil Corporation, to acquire a 15% interest in Blocks 48/1a, 47/5b and 48/1c in the UK Southern North Sea. These blocks contain the Platypus gas field and the Possum gas prospect.

This acquisition marks an important step in Parkmead’s first stage of its development to become a significant new independent oil and gas company. The Parkmead technical and commercial teams have a long history and detailed knowledge of these assets and therefore these blocks are an ideal fit for the Group’s growth strategy.

The Platypus Rotliegendes gas accumulation was discovered in 2010 by the Dana Petroleum plc operated 48/1a-5 well, which encountered 218 vertical feet of gas bearing sands. The Platypus gas field, which lies 18km north north west of the West Sole gas field and 15km west south west of the Babbage gas field, has the potential to contain up to 180 billion cubic feet of gas in place. The 48/1a-5 well was suspended by Dana Petroleum and its partners in 2010 for potential re entry and future use as a gas production well.

The Possum structure is a Rotliegendes gas prospect, immediately adjacent to the Platypus gas field, with estimated resources of approximately 100 billion cubic feet of gas in place.

The operator, Dana Petroleum, holds a 45% stake and has secured a rig to drill a well on the Platypus / Possum complex scheduled to commence in Q1 2012. This well will be drilled horizontally through the Rotliegendes gas reservoir to confirm deliverability and is expected to be retained for use as a gas producer.

Tom Cross, Executive Chairman of Parkmead, commented:

“The Platypus and Possum areas are a valuable addition to Parkmead. We know the geotechnical aspects of these blocks intimately and believe they contain the potential for significant upside.”

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Offshore Nieuws Staff , November 16, 2011