Parkmead shares jump on North Sea stake-building move

Parkmead said the deal has boosted its reserves by 19%. Picture: Contributed

Parkmead said the deal has boosted its reserves by 19%. Picture: Contributed

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Shares in Parkmead, the exploration group headed by former Dana Petroleum chief executive Tom Cross, raced ahead yesterday after it upped its stakes in two North Sea oil fields.

The Aberdeen-based company said the deal to increase its share in the Perth and Dolphin oil fields which it operates has increased its reserves by 19 per cent to 27.9 million barrels of oil equivalent.

READ MORE: Parkmead doubles stake in North Sea oil fields

The fields form the core of the group’s major Perth-Dolphin-Lowlander (PDL) project and Cross, who is executive chairman, said the deal strengthens Parkmead’s position in what is one of the largest undeveloped oil projects in the North Sea. No financial value was provided for the transaction.

Analysts at SP Angel welcomed the move as evidence of solid progress at Parkmead and said they believed the company’s strategy will enable it to “ultimately emerge from this period of low oil prices in a better position than it entered it”.

Parkmead’s shares ended yesterday’s session almost 11 per cent higher at 54.62p.

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