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Parkmead agrees to buy historic royalties associated with existing interests
9th Jul 2021 09:45
(Sharecast News) - Independent energy group Parkmead has agreed to purchase a historic royalty associated with its existing interests in several licenses in the Netherlands from Vermilion Energy.
Parkmead said the acquisition, linked to its existing interests in the Drenthe IV, Drenthe V and Andel Va licenses, contained the Grolloo, Geesbrug and Brakel onshore gas fields, respectively.
The royalty, previously held by a Shell and ExxonMobil joint venture, will be purchased for €565,000, satisfied through a part cash payment of approximately €150,000, with the balance being paid from part of the remaining 2021 net revenue from Parkmead's working interest in the Geesbrug gas field.
As a result of the acquisition, Parkmead will increase net gas production from the wells, doubling its effective financial interest from 7.5% to 15%.
The AIM-listed group also expects the acquisition to extend the producing life of the fields through greater partner alignment.
Chairman Tom Cross said: "This innovative deal enhances our gas interests in the Netherlands and adds significant value to Parkmead.
"We continue to build a portfolio of high-quality energy projects through acquisitions, organic growth and active asset management."
As of 0945 BST, Parkmead shares were up 5.71% at 52.75p.
Parkmead said the acquisition, linked to its existing interests in the Drenthe IV, Drenthe V and Andel Va licenses, contained the Grolloo, Geesbrug and Brakel onshore gas fields, respectively.
The royalty, previously held by a Shell and ExxonMobil joint venture, will be purchased for €565,000, satisfied through a part cash payment of approximately €150,000, with the balance being paid from part of the remaining 2021 net revenue from Parkmead's working interest in the Geesbrug gas field.
As a result of the acquisition, Parkmead will increase net gas production from the wells, doubling its effective financial interest from 7.5% to 15%.
The AIM-listed group also expects the acquisition to extend the producing life of the fields through greater partner alignment.
Chairman Tom Cross said: "This innovative deal enhances our gas interests in the Netherlands and adds significant value to Parkmead.
"We continue to build a portfolio of high-quality energy projects through acquisitions, organic growth and active asset management."
As of 0945 BST, Parkmead shares were up 5.71% at 52.75p.