The Parkmead Group (LON:PMG) is fully funded for future drilling and is well positioned to capitalise on strategic opportunities, it told investors today as it released its full year results.
The company is looking to build a "significant" new oil and gas firm and this month completed its first acquisition in the UK North Sea - of a stake in the Platypus gas field and Possum gas prospect offering near term drilling and significant upside potential.
It has also secured a flexible shareholder loan of £8 million to ensure future funding.
In the year to June 30, the firm's revenue increased 58 per cent to £3.7 million compared to £2.4 million in 2010 - thanks to the performance of the firm's wholly owned subsidiary Aupec, which it bought in November 2009.
The operating loss for the year was £3.6 million (2010: £1.5 million) while the loss after tax was £3.6 million compared to a loss of £1.5 million in 2010.
As at June 30, the firm had a cash balances of £1.3 million (2010: £291,869.
Executive chairman Tom Cross said: "I am pleased to report on Parkmead's improved operating capability for the year to June 30 2011. The group's turnover and gross profit both increased substantially and net assets have also increased.
"We remain focused on the pursuit of value-adding acquisitions, at both asset and corporate levels, in line with the group's strategy.
"The board is pleased to be able to report that our first asset transaction in our core target market was completed earlier this month. In addition, the group is now fully funded for its forward programme of drilling activities and is well positioned to capitalise on further strategic opportunities."
On November 15, the firm announced the deal to acquire the interest in a North Sea gas field from ExxonMobil. It is acquiring a 15 per cent stake in North Sea blocks 48/1a, 47/5b and 48/1c. Hosted on these blocks are the Platypus gas field and Possum gas prospect.
Dana Petroleum is the operator and the major stakeholder of these blocks with a 45 per cent interest.
The Parkmead team is made up of the core team of senior staff that previously ran Dana Petroleum, before it was sold to the Korean National Oil Corporation last year.
The Platypus Rotliegendes gas accumulation was discovered by Dana in 2010. The discovery well, 48/1a-5l, encountered 218 feet of gas bearing sands.
The field has the potential to contain up to 180 billion cubic feet of gas in place, Parkmead has said.
In 2010 Dana suspended the 48/1a-5 well for potential re-entry and future use as a gas production well.