Parkmead Group reduces FY pretax loss

Parkmead Group has materially reduced its FY pretax loss to £6.4m, from a year-earlier loss of £30.8m.

Revenue was £10.4m, from £18.6m. The prior year was affected by £39.4m for cost of sales, versus £15.1m in the just-ended leg.

"I am pleased to report an excellent year of progress for Parkmead, despite the challenges of the low oil price environment," said executive chair Tom Cross in a statement.

"Parkmead discovered and brought onstream a new gas field at Diever West, in the Netherlands, within just 14 months. This field is delivering profitable gas production and important additional cash flow to the Group.

"Parkmead is increasing the Group's gas production in the Netherlands through a low-cost, onshore work programme. This acts as a natural hedge to low global oil prices.

"The Group's reserves and resources have significantly increased in 2016 through two licence acquisitions. Parkmead has strengthened its position around the important PDL oil hub in the UK North Sea.

"Our new licence awards in the 28th Round were an outstanding result for Parkmead, with 10 new offshore oil and gas blocks awarded to the Group. We are delighted with the new award in the West of Shetland region targeting two prospects, Sanda North and Sanda South. West of Shetland is an area we understand well and has the potential to add major value to the Company.

"Parkmead is well positioned to take advantage of the ongoing 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 to build upon the inherent value in its existing interests with a licensing and acquisition-led growth strategy, securing opportunities that maximise long-term value for our shareholders."