Parkmead acquires onshore assets from Dyas

Parkmead has completed the acquisition of a portfolio of onshore assets located in Netherlands from Dyas for a total purchase price of €7.5m.

The acquisition of the four producing gas fields and two oil fields was first announced on 8 March 2012.

The assets formerly owned by Dyas include a 15% interest in the Andel V production licence, including the two producing gas fields at Wijk en Aalburg and Brakel, as well as the Ottoland oil field development.

A 15% interest in the Papekop production licence, including the Papekop oil field development, and a 15% interest in the Drenthe III production licence (excluding Vinkega) and the Drenthe IV production licence, which together include the two producing gas fields at Geesbrug and Grolloo.

Parkmead will first pay €4.5m in cash for the interests, with a further €3m payable on the first commercial sale of oil from the Papekop field development.

The company said the assets were producing at a rate of approximately 2,000 barrels of oil equivalent per day, being 300 barrels of oil equivalent net to Parkmead.

Parkmead executive chairman Tom Cross said, "We are pleased to have secured stakes in these attractive licence areas that give Parkmead its first gas production and near term oil field developments."

The acquisition will help build the company’s business as it plans to enter production within one year of the oil and gas team being assembled.

Ottoland oil field is expected to come onstream in 2013 following the recent completion of a successful extended well test which produced oil at a stable rate from the existing single well on this accumulation.

The test results will allow optimisation of the development plan, including determination of the number of production wells required to efficiently drain the field.