Parkmead swings into the black as oil flows surge

PARKMEAD, the Aberdeen-based oil explorer headed by Dana Petroleum founder Tom Cross, today reported a maiden profit after a doubling of assets helped drive a near-fivefold jump in half-year revenues.
Tom Cross: Parkmead is in an excellent postitionTom Cross: Parkmead is in an excellent postition
Tom Cross: Parkmead is in an excellent postition

The Aberdeen-based firm, run by Dana Petroleum founder Tom Cross, posted a pre-tax profit of £3.1 million for the six months to the end of December, compared with a £2.8m loss a year earlier.

The profit is the Aim-quoted company’s first since it joined the market in March 2000.

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Revenues surged 395 per cent to £9.9m, with total assets doubling to £81.5m following the acquisition of Lochard Energy and an increased stake in the Athena field in the North Sea.

Cash balances stood at £12.7m at 31 December and the company said it was in advanced discussion with lenders regarding debt facilities to increase financial firepower and further strengthen the balance sheet Cross, the firm’s executive chairman, said Parkmead had significantly increased its oil and gas production during the period and boosted cash flow.

He said, with last month’s £40m fundraising, Parkmead was now in “an excellent position to drive the business forward and to build upon the momentum already generated”.

Its exploration progress has included a gas discovery made in the UK southern North Sea by the Pharos exploration well and the award of five more oil and gas blocks in the UKCS 27th licensing Round, resulting in a total award of 30 blocks across the North Sea, west of Scotland and west of Shetlands.

Work is also being accelerated on the Skerryvore oil prospect in the UK central North Sea where an exploration well is planned.

Analyst Brendan Long at Charles Stanley said the figures “reflected steady growth”.

“The results provide comfort that the trajectory of the company is being translated into financial results as anticipated.”

He reiterated his buy recommendation with a price target of 380p. Shares in the company closed down 5p at 240p.