LONDON (ShareCast) - (ShareCast News) - UK and Netherlands-focussed independent oil and gas group Parkmead announced on Wednesday that it has completed the previously-announced acquisition of a 50% interest in the UK North Sea Licence P.2209. from Verus Petroleum, which contains the Farne Extension prospect and a further four prospective leads.
The AIM-traded company said licence P.2209 comprises two adjacent blocks, Block 42/19 and Block 42/20b.

Parkmead originally held a 50% interest in the licence, and therefore the acquisition doubled Parkmead's equity to 100%.

The collection of prospects and leads within the licence, which was being operated by Parkmead, had the potential to contain 175 billion cubic feet of gas initially in place on a 'most likely' P50 basis.

"We are delighted to double our stake in this attractive area, which expands Parkmead's portfolio in the Southern Gas Basin," said executive chairman Tom Cross.

"Parkmead has a 100% track record of drilling success in the UK Southern Gas Basin to date, with successful wells drilled at Platypus and Pharos."

Parkmead said blocks 42/19 and 42/20b were situated in the Southern Gas Basin of the UK North Sea, directly to the south east of the Breagh gas field.

The primary play fairway developed on the acreage included the Carboniferous sands, which formed the productive reservoirs in the nearby gas fields at Breagh, Kilmar and Cavendish.

It said the most prominent prospect on the block was the Farne Extension, which is a north westerly extension of the Farne prospect mapped in the adjacent block to the east.

To date, four additional leads had been identified at Carboniferous level within the blocks, all of which - like the Farne Extension - were structural closures mapped at Base Permian level.

"Our technical and commercial teams at Parkmead are working hard to evaluate and execute further value-adding opportunities in our core areas of the UK and Netherlands," Cross added.

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