Parkmead Share Discussion Threads

[fardels bear] 01/4/2019 21:35

Never been tossed by a gerbil myself but chaq un a son gout.

[chutes01] 01/4/2019 13:59

some trading these past 2 days, looks like an agreed sell of over 1 million held the price back today, otherwise we would be over 70p now, very strong foundations for growth, and don't rule out a wild cat bid as the sum of parts make sense.
Good update of their website from local press at weekend.
GLA

[fardels bear] 01/4/2019 13:57

Knowing this share, bh, we may not have anything to spend by the time we get to the races but it'll have to blow one day soon..

[bountyhunter] 01/4/2019 13:51

off to the races? I'm surprised gg is not over here ;)

[fardels bear] 01/4/2019 13:41

It needs the volume to hold up in order not to let the traders damage the upticks.

[skyship] 01/4/2019 13:36

Personally I don't see how it would be possible to write a more upbeat comment on the real VALUE we see here in PMG. The chart breakout now in train; and surely should hold, so moves to 65p+ look to be on the cards for this week..... and 80p thereafter.

[robs12] 01/4/2019 13:23

Regarding Polecat and Marten (PMG 100%), and what might now be the nearest newsflow (i.e. Verbier results) - Polecat was discovered 2005, appraised 2010, appraisal well flowed at 4,373 bbls/day.
Marten discovered 1984, three oil bearing sandstones. Together estimated at 90MMBoe in place, and 33MMBoe 2C.

So these are existing discoveries, not exploration prospects. Just need a financially viable route to shore, which if Verbier is as we hope, should be relatively low cost to develop alongside, and hopefully with a significant upshift in the figures also.

[cf456] 01/4/2019 13:09

Massive volume today.

Bodes well for a breakout and continuation upwards.

[fardels bear] 01/4/2019 13:04

Thanks for the heads up.

[fardels bear] 01/4/2019 12:57

Martin. tch tch.

[gersemi] 01/4/2019 12:44

It's freely available through Google search

1 April 2019

Multiple share price catalysts on Parkmead’s horizon

I am not one for hyperbole, but the half-year results from Parkmead (PMG:57.5p), a small-cap oil and gas exploration and development company, led by 19 per cent shareholder, Tom Cross, the founder and former chief executive of Dana Petroleum, until its sale to the Korea National Oil Corporation in 2010, blew me away. Parkmead produces gas from a portfolio of four fields across the Netherlands, and holds oil and gas interests spanning 30 exploration and production blocks in the North Sea, several of which could prove transformational for shareholders this year.

The company holds a 7.5 per cent stake in the Diever West gasfield in the Netherlands, which came on stream in November 2015, and averaged the equivalent of 5,340 barrels of oil equivalent per day (boepd) in its first six months. It has been exceeding expectations ever since, so much so that output in the latest six-month period surged by 54 per cent to 8,293 bopd. Moreover, dynamic reservoir monitoring suggests that it has 18.6m barrels of oil equivalent of gross gas-in-place, or 108bn cubic feet. That’s more than 2.5 times the original estimate.

In addition to Diever West, Parkmead's low-cost onshore gas portfolio includes three other fields in the Netherlands, and the four fields in total have an average operating cost of just $12.3 (£9.50) per barrel of oil equivalent. So, with output surging, half-year gross profit of £3.84m on revenue of £5.3m almost matched that of the whole of the previous financial year, and produced a post-tax profit of £2.2m.

Importantly, the company is now cash-flow positive on an operating basis and retains a robust balance sheet, which was buoyed post period-end by a £6.2m inflow following the recent takeover of Faroe Petroleum, a company in which Parkmead was a shareholder. As a result, net cash of £30m equates to more than half of Parkmead’s market capitalisation of £56m, implying that its Dutch gas operating assets and the 30 North Sea Licences are being incredibly lowly rated.

That’s anomalous for several reasons, not least of which is that these licences include the Parkmead operated Polecat and Martin oil fields in the UK Central North Sea. These are located eight miles to the west of Blocks 20/5b & 21/1d in the Outer Moray Firth. I know the blocks well because Jersey Oil & Gas (JOG:224p), a UK North Sea-focused upstream oil and gas company and a constituent of my 2019 Bargain Share Portfolio, holds an 18 per cent interest in both licences.

Bear this in mind, the result of an appraisal drilling programme on the flagship Verbier discovery in Block 20/5b is due to be announced in a few weeks' time. Initial operator estimates suggest gross recoverable resources associated with the Verbier discovery is between 25m and 130m barrels of oil equivalent (boe) with an estimated mean of 69mboe. The purpose of the appraisal well is to accurately determine the potential volume range in the discovery. The point being that there could be a very positive read across and valuation upside for Parkmead’s Polecat and Martin oil fields, given that they share many similarities with the Verbier discovery. It would obviously be good news for Jersey Oil & Gas shareholders, too.



Progress on the commercialisation of multiple licenses

Furthermore, Parkmead is making considerable progress on the Platypus gas field in the UK Southern North Sea, in which the company holds a 15 per cent equity stake alongside Dana Petroleum, the operator and 59 per cent stakeholder. Detailed development concept work has found that, by collaborating with other facilities in the area, a minimal platform concept can be adopted, substantially reducing development expenditure. In addition, the field’s gas reserves can now be recovered from two rather than three development wells. The joint-venture partnership holding the licence is working towards optimising the export route for Platypus ahead of an off-take agreement.

Likely newsflow on the commercialisation of licences covering the Perth and Dolphin fields in the Moray Firth area, which contains very large oil fields including Piper, Claymore and Tartan, is another potential share price driver. Perth and Dolphin are two substantial Upper Jurassic Claymore sandstone accumulations that have tested 32°-38° API oil at production rates of up to 6,000 barrels of oil per day (bopd) per well. That’s worth noting, because Parkmead is in commercial discussions with the Scott field partnership, led by China National Offshore Oil Corporation, to explore terms of a sub-sea tie-back via the Scott platform located six miles away from Parkmead’s Greater Perth Area (GPA) oil hub. Parkmead is also holding discussions with a number of leading, international oil service companies.

The point being that newsflow from either Verbier, the GPA project, further production gains in the Netherlands, or an off-take agreement for Platypus, all have scope to drive Parkmead’s share price significantly higher, and put a more realistic valuation on its 2P reserves of 46m barrels of oil equivalent (boe), and 2C reserves of 100.9m boe.

This is not lost on investors, which is why Parkmead’s shares are up 55 per cent since I included them in my 2018 Bargain Shares Portfolio. However, I believe that they could double – or even treble in value – if the company commercialises either the Platypus or GPA project. The downside risk looks limited given cash backs up more than half Parkmead’s market capitalisation, and the profitable Dutch gas operations means that the company actually generates positive cash flow. Strong buy.

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[fardels bear] 01/4/2019 12:34

Is it worth subscribing to read it though? I already hold. Added last week..

[chutes01] 01/4/2019 12:16

breakout imminent here

[cf456] 01/4/2019 12:13

"However, I believe that they could double – or even treble in value – if the company commercialises either the Platypus or GPA project. The downside risk looks limited given cash backs up more than half Parkmead’s market capitalisation, and the profitable Dutch gas operations means that the company actually generates positive cash flow. Strong buy."

[chutes01] 01/4/2019 12:05

Another IC article ? loads buying in last 10 mins

[skyship] 31/3/2019 21:49

Sp being squeezed toward the point of the wedge - breakout coming:


free stock charts from uk.advfn.com

[chutes01] 30/3/2019 18:13

sky, the chart still looks in play, ready to move sharply one way or the other.
Now Interims have been cleared, I suspect project updates will be issued start of April as advised, the Scott facility was made aware of the GPA go-ahead couple months ago, so assume delay has been sanction sign-off from the partners.

[skyship] 30/3/2019 13:33

Well, personally I thought his 8142 quite a useful summary of why these are cheap at this level - so thumbs up...

[fhmktg] 30/3/2019 13:14

Any press comment?

[fanshaw] 29/3/2019 14:59

chutes

What are you rambling on about.

[chutes01] 29/3/2019 13:25

the team are ex dana which discovered the east/west rinnes fields, south hudson, melville, all rebranded to western isles, it is online as fpso after dana failed to agree tarrif with leo koot at taqa for tern to process the fluids. knoc sacked the dana directors in aberdeen as they couldn't progress the project properly.
the team are geologists/geophysists, so they find the prospects but the don't have the expertise to bring it to fruition - thats not what they do, they get bought out before this.

[chutes01] 29/3/2019 13:20

figures are a bit better you plonker
commercial discussions are highly sensitive, why show their hand to competitors, they are sitting on 3 major projects which are near infrastructure, this prob not a t/o target, but it should be - 3 major projects at £10 Mio each, Perth is a proper oil field close to piper field which produced 330,000 bls/day once, the largest single oil producer in the world at the time.
They will gice cnooc a share of the field in return for costs and tarrif, then its a free carry, 7000 bls/day free oil to PMG, then Platypus, then skerryvore is extrememly valuable.
Buy and tuck away for 2 years, no one is making much on trading this.

[fanshaw] 29/3/2019 13:15

Basically a cut and paste from previous reports.

[chutes01] 29/3/2019 13:14

mm's being gifted stock at 57p to sell on next week mid 60's, easy work from mug punters.