Parkmead has reported on the successful conclusion of all post-completion tasks in the sale of its UK offshore petroleum licences to Serica Energy, via the previously announced sale of its subsidiary Parkmead E&P Ltd, worth up to a potential £134 million to the Group.
The Company has retained 100% of its cash producing assets, namely its four producing onshore gas fields in the Netherlands and its onshore electricity producing wind farm in Scotland.
Parkmead now intends to focus its attention on the delivery of greener energy. Therefore the disposal of Parkmead E&P Ltd marks a significant step in recalibrating the Company's portfolio, rendering Parkmead well poised to capitalise on opportunities in renewables, with a view to driving future growth and generating value for shareholders.
Increased Financial Strength
Parkmead is in a strong financial position, with cash balances of approximately £13 million as at 30 June 2025. The Group has minimal outstanding debt of just £0.7 million, which remains from the development of our 100% owned and operated wind farm at Kempstone Hill.
In addition, Parkmead will be receiving additional deferred cash totalling £7.0 million, relating to the sale of its UK E&P subsidiary to Serica. This further cash comprises two payments of £3.1 million and £3.9 million, due on 27 February 2026 and 27 February 2027 respectively. These payments are firm and unconditional. There are further potential payments to Parkmead of up to £30 million and £90 million, conditional on future field development approvals on the Skerryvore and Fynn licences respectively, providing the Company and its shareholders with the potential opportunity to realise significant additional upside in the future.
Glenskinnan Renewable Energy Park
Parkmead continues to advance its stake in the Glenskinnan Renewable Energy Park, a major integrated renewables project being developed in partnership with Galileo Empower, a leading European renewable energy developer.
The integrated scheme is being designed to deliver up to 98 MW of wind generated electrical capacity across 14 turbines, alongside 20 MW of solar PV and 30 MW of battery storage. Parkmead's owned land at Pitreadie will accommodate over 50% of the combined installed capacity proposed in the planning application, making it a central component of the development.
Key milestones include:
- Initial public consultation, completed in April 2025
- Scheme design being finalised in 2H 2025
- Second public consultation scheduled for end of Q3 2025
- Section 36 planning application to be submitted to Scottish Government during Q4 2025
Parkmead and Galileo are currently finalising commercial arrangements ahead of the Section 36 application, with the project representing a significant step forward in the Group's renewable energy strategy.
Netherlands Natural Gas Fields
In the first half of 2025, Parkmead's Dutch fields delivered an average net production of 155 boe/d. A successful coiled-tubing water wash was completed at Geesbrug in March, resulting in production doubling on this asset. An unplanned shutdown of the Vries system impacted performance at Grolloo, with production now successfully reinstated.
A number of new drilling targets are being evaluated to boost future production. Our Dutch business benefited from stronger commodity market conditions. During the first half of 2025, realised gas sales pricing increased to €41.86/MWh from €38.16/MWh in the prior six months. These assets continue to provide reliable cash flow and growth potential which supports the Group's broader strategy.
Kempstone Hill Wind Farm
The Parkmead operated wind farm at Kempstone Hill continued to perform strongly through the first half of 2025. Over the last 12 months Parkmead has achieved and maintained an exceptionally high level of operational efficiency, in the range 96-99%. This demonstrates the reliability of the asset. The Group is continuing to assess the potential to expand the electricity production capability of the Kempstone Hill site, to make use of its excess grid capacity.
Corporate and Business Development
Parkmead is continuing to mature a range of high-impact investment and acquisition opportunities. These initiatives are aligned with the Group's strategy to grow and diversify its interests across international E&P and UK renewable energy projects.
Given that Parkmead will no longer be an offshore licence Operator in the North Sea, with all the regulatory aspects and operational demands that entails, we have reduced staff positions and reduced our office space by over 40%. After more than four years of excellent service as a non-executive director, Robert Finlay has left the board with immediate effect to focus on his other activities. We would like to thank Robert for his important contribution to the Group and wish him every success in the future. The Company is well advanced in its process to bring a further independent NED onboard and will provide an update in due course.
Parkmead's Executive Chairman, Tom Cross, commented:
'Parkmead has made strong progress across all elements of the business in the first half of 2025. We have completed the sale of our UK offshore-focused subsidiary, delivered solid operational performance from our onshore producing assets, advanced our flagship renewable energy project at Glenskinnan, and achieved a very healthy and robust financial position.
Our continued focus on strategic growth and efficiency ensures Parkmead is well positioned for the future.'
Source: Parkmead Group
