Parkmead increases stake in Athena oil field (UK)
Parkmead has completed the previously announced acquisition of an additional 20 per cent. interest in UK production licence P.1293 (Block 14/18b ALL), containing the Athena oil field, from EWE VERTRIEB GmbH (“EWE”).
Through Parkmead’s acquisition of Lochard Energy Group PLC, completed in July 2013, the Company already holds a 10 per cent. interest in the producing Athena oil field. This acquisition from EWE has therefore trebled Parkmead’s total stake in the field to 30 per cent. and the increased interest will provide the Company with significant growth in production revenues and operating cash flows.
The total consideration for the additional 20 per cent. interest is US$11.2 million. Following certain working capital adjustments, the final consideration payable by Parkmead to EWE will be satisfied by approximately US$2.679 million in cash and by the issue of 288,016 new Parkmead Shares to EWE.
Tom Cross, Executive Chairman of Parkmead, said:
“This is Parkmead’s most important deal to date, because it significantly strengthens the Group’s oil and gas production base. The additional oil production from Athena will deliver major increases in revenue and cash flow at this exciting stage in Parkmead’s growth”.
Application has been made for the 288,016 new Parkmead Shares to be admitted to trading on AIM and it is expected that Admission will take place on 15 April 2014. The new Parkmead Shares will rank pari passu with the Existing Ordinary Shares.