10th Apr 2014 09:37
LONDON (Alliance News) - The Parkmead Group PLC said Thursday it has completed its acquisition of an additional 20% interest in the UK production licence P.1293 (Block 14/18b ALL), containing the Athena oil field.
Parkmead already held a 10% interest in the producing Athena oil field, following its acquisition of Lochard Energy Group PLC, completed in July 2013.
The firm said it has now acquired the additional stake from EWE VERTRIEB GmbH in a USD11.2 million deal, tripling its holding to 30%; the increased interest will provide the company with significant growth in production revenues and operating cash flows, it said.
Parkmead said the final consideration will be approximately USD2.679 million in cash and by the issue of 288,016 new Parkmead Shares to EWE.
"This is Parkmead's most important deal to date, because it significantly strengthens the Group's oil and gas production base. The additional oil production from Athena will deliver major increases in revenue and cash flow at this exciting stage in Parkmead's growth," said Tom Cross, Executive Chairman of Parkmead.
Application has been made for the 288,016 new Parkmead Shares to be admitted to trading on AIM and it is expected that Admission will take place on April 15, 2014, said the company.
Shares in Parkmead were trading 3.01% higher at 237.7 pence per share Thursday.
By Alice Attwood; [email protected]; @AliceAtAlliance
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