Parkmead has raised around $66 million through an oversubscribed placing of 15,686,275 new Ordinary Shares at 255 pence per share. The company says it has build a strong platform for future growth and has been actively executing its accelerated strategy to become a key E&P player in the UK North Sea.
Parkmead will use the cash to finance the ongoing capital obligations such as drilling at the Skerryvore well in the North Sea, workover operations at Athena oil field and further Mergers & Acquisitions activity. The company also hopes to accelerate its drilling schedule, covering Possum Blackadder and Davaar wells in the Southern North Sea.
Furthermore, the money raised will be used for funding of work as Parkmead finalises its preparations for applications for new licences in the UKCS 28th Licensing Round, which opened for applications on 24 January 2014.
To remind, the independent oil and gas group last year bought a 30 per cent share in the Athena oil field in the UK North Sea. A work programme is planned for 2014 to increase production from the field and workover and infill drilling options exist to extend the life of the field.
The planned workover to the P4 well at the field is expected to increase gross field production to approximately 9,000 barrels of oil per day, while the company also plans to add a new production well at the field, hoping to extract a further 1,100 barrels of oil per day (net) to Parkmead production levels.
Tom Cross, Executive Chairman of Parkmead, said: “2013 was an excellent year for Parkmead, with the Company delivering significant growth throughout its asset base and in its production profile. This important, oversubscribed placing with major institutional investors will place Parkmead in a strong position, with over US$66.0 million of firepower to accelerate its growth through the development of its existing asset base, the planned applications in the recently opened UKCS 28th Licensing Round and further corporate opportunities.”