Industry regulator the North Sea Transition Authority (NSTA) has given the company the green light to enter the next phase of the licence and drill the high-impact prospect.
A geotechnical work programme carried out at Skerryvore has confirmed the “considerable multi-interval potential” of the project, Parkmead said.
The planned well will target two main stacked exploration prospects, which studies indicate could contain 157 million barrels of oil equivalent in the most likely case.
Skerryvore has been waiting for some time to get off the ground, with Parkmead having previously said it was seeking to drill back in 2015.
The licence also contains additional prospects at the Ekofisk and Jurassic levels and a successful discovery could be tied into existing and planned infrastructure nearby.
Increasing its stake
Parkmead has also upped its stake in Skerryvore, which will be the firm’s Parkmead’s first operated exploration well, from 30% to 50%.
It follows consultation with its joint venture partners in Licence P.2400 and approval by the NSTA.
Parkmead will continue as operator in the licence alongside joint venture partners Serica Energy (20%) and CalEnergy (30%).
It means NEO Energy, which previously held a 30% stake in the area, has left the project, with a third of its share going to CalEnergy and the rest to Parkmead.
Other assets around and about
Skerryvore is in close proximity to a number of other up and coming plays.
Harbour Energy has reached an investment decision on the adjacent Talbot discovery, meanwhile NEO Energy is continuing with the redevelopment of Affleck.
Across the fence on the Norwegian side of the North Sea development activity is also taking place close to Skerryvoer at Tommeliten A, a licence operated by ConocoPhillips.
Tom Cross, Parkmean executive chairman, commented: “Parkmead’s technical team has made significant progress on the licences held by the Company and the decision to proceed with drilling the Skerryvore prospects is a major milestone.
“Parkmead will continue to evaluate the exploration potential of other licences it holds. We are seeing renewed UK government interest in the North Sea, as it seeks to bolster energy security, and we are excited by the opportunities that exist within our assets in this prolific region.
“Increasing our stake in Skerryvore comes on the back of delivering record gas revenues this year in the Netherlands.
“We will continue to focus on building a portfolio of high-quality energy projects through acquisitions, organic growth and the active management of our assets across all energy sectors.”