Aberdeen-based independent oil and gas firm Parkmead said it nearly doubled its stake in the major Sanda North and Sanda South structures in the West of Shetland area of the UK North Sea which have “the potential to add major value to the company.”
“Through this accretive step, Parkmead has increased its equity in the licence from 56% to 100%,” said Parkmead.
“The Sanda North and Sanda South prospects, which are both operated by Parkmead, have the potential to contain 280 million barrels of recoverable oil on a most likely, P50 basis.”
Parkmead said it continued to analyse a number of further opportunities, including UK and Netherlands based acquisitions.
“The Parkmead business development team is seeing an upturn in M&A activity in our industry, and Parkmead’s strong and debt free balance sheet positions the company to take advantage of this improving environment,” the company said.
Parkmead executive chairman Tom Cross said: “We are delighted to have nearly doubled our stake in the very large Sanda North and Sanda South prospects, which have the potential to add major value to the company.
“The West of Shetland is an area that we understand well, and this increased stake further builds on the strength of Parkmead’s asset portfolio in the UK.
“We are pleased that high-impact exploration close to our acreage could add further regional value to Parkmead’s assets, at no cost to our company.
“The team at Parkmead is working intensively to evaluate and execute further value-adding opportunities in our core areas of the UK and Netherlands.”