Oil and gas firm Parkmead eyes more deals as losses narrow

Parkmead Group is mulling more acquisitions after the oil and gas explorer reported sharply lower losses for the first half.

Parkmead hopes to take advantage of low oil prices by striking more deals. Picture: Contributed

The Aberdeen-based firm, led by executive chairman Tom Cross, has its eye on a number of potential deals as it seeks to “take advantage of the current low oil price environment”.

Parkmead has made six acquisitions since repositioning itself as an independent oil and gas firm in 2011, and Cross said the Aim-quoted company plans to “build on this excellent track record”.

He added: “Parkmead is well positioned to take advantage of the lower oil price environment and the opportunities that are arising from this. We have excellent regional expertise, significant cash resources and a growing, low-cost gas portfolio. The Group will continue with its licensing and acquisition-led growth strategy, securing opportunities that maximise long-term value for our shareholders.”

His comments came as Parkmead, which has been boosted by a new onshore gas field in the Netherlands, posted a pre-tax loss of £4.6 million for the six months to the end of December, down from £17m a year earlier.

The improvement came despite a 30 per cent slide in revenues to £7m, which the firm blamed on the drop in oil prices. Brent crude averaged $48 a barrel during the second half of 2015, compared with $91 in the second half of 2014.

“The reduction in revenue was partly offset by the increasing contribution from Diever West in the Netherlands following first gas in November,” Parkmead said. The firm ended 2015 with cash resources of £29.6m.