Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Parkmead boss declares interest in Shell North Sea assets, has $100m to spend

Parkmead CEO Tom Cross

The boss at Parkmead Group said yesterday that the company was interested in North Sea assets that form part of Shell’s divestment plans.

Tom Cross, Parkmead’s chief executive and biggest shareholder, said the firm had “good relations” with oil majors and pointed out that his previous business venture, Dana Petroleum, had bought North Sea assets from Shell.

Shell is currently trying to raise $30billion (£22.7billion) through a three-year divestment programme to help balance the books after its takeover of BG Group.

Mr Cross said investors and banks were ready to back Aberdeen-based Parkmead to the hilt if the right acquisition opportunities came up, whether at Shell or elsewhere.

Parkmead is thought to have a sizeable war chest at its disposal.

Mr Cross said Parkmead was prepared to pay up to $100million per transaction  –  calling upon a mix of cash reserves and debt  –  but could go even higher when negotiating for a cluster of assets.

He said there were three strands to Parkmead’s expansion strategy. The firm either looks to buy from oil majors who want to divest “smaller” assets, or from rivals in financial trouble.

Parkmead also has a track record of gradually beefing up its stakes in fields it has already invested in.

The company demonstrated this yesterday when it announced an increase in its share of two North Sea fields to 60.05% from 52.03% − with struggling Atlantic Petroleum reducing its stake.

Atlantic, a Faroese oil and gas explorer, in May confirmed plans to offload its entire UK North Sea portfolio in the face of low crude prices. At the time, Atlantic boss Ben Arabo said the firm was switching its attention to projects in Eastern Europe and Eurasia.

Mr Cross said his team at Parkmead was “excited” about the recent equity increases in the Perth and Dolphin fields in the Moray Firth area, a move which saw the firm’s shares jump 10.91% to 54.62p on the London Stock Exchange.

The two fields are at the centre of Parkmead’s Perth-Dolphin-Lowlander (PDL) project.

PDL is one of the largest sets of undeveloped oil assets in the North Sea, with estimated recoverable reserves of more than 80million barrels.

Last month, Parkmead boosted its stakes in the nearby Polecat and Marten fields from 50% to 100%.

Mr Cross said yesterday: “We’ve been building our stake in a number of fields in this area. While oil is at a low point we are buying strategically important reserves at low cost. We are going to be well positioned to exploit the situation as things improve.”

He added: “PDL is going to be a very important project further down the road. As we have control of PDL, we can bring in larger partners for financing.”

Commenting on the Perth and Dolphin stake increases, finnCap analyst Dougie Youngson said: “We view this acquisition positively and hope that it signals a step towards moving this project into development. We maintain our Buy recommendation and our 80p target price.”

Recommended for you

More from Energy Voice

Latest Posts