24th Sep 2014 07:17
LONDON (Alliance News) - Oil and gas company The Parkmead Group PLC saw its shares rise Wednesday after it said its latest exploration well in the Netherlands has struck gas, while it has also started work on the Skerryvore prospect in the UK North Sea.
Parkmead and its partners have been drilling a well targeting the Diever West exploration prospect in the Drenthe IIIb production licence, onshore Netherlands. The operator of the licence is Vermilion Energy and the other partners ate NAM and EBN.
In a statement, Parkmead said the Diever-2 well reached a total depth of 7,457 feet and gas was discovered in a good quality Rotliegendes age sandstone reservoir. The well discovered a 157 foot gas column, with both net pay and porosity values that have exceeded pre-drill expectations, it added.
"This new field provides an excellent, additional near-term production opportunity for Parkmead,2 Parkmead Chairman Tom Cross said.
The company also said that a site survey has begun at the Skerryvore oil prospect in the central North Sea that it operates. The survey will provide detailed technical information on the Skerryvore site ahead of the prospect being drilled in 2015.
Parkmead has a 30.5% stake in the Skerryvore area, and thinks the prospect has the potential to contain up to 122 million barrels of recoverable oil on a most likely, P50 basis.
"Exploratory work is already underway at the exciting Skerryvore oil target. Skerryvore has the potential to add major value to Parkmead's growing asset base," Cross said.
The Parkmead Group shares were up 5.1% at 226.00 pence early Wednesday, among the best-performing stocks on the AIM All-Share index.
By Steve McGrath; [email protected]; @stevemcgrath1
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