Parkmead earns record gas revenues
Parkmead expects it has earned more than €14.5mn ($15mn) from its Dutch gas assets in the year ending June 30, 2022, on the back of soaring European gas prices, the London-listed company said on July 6.
Spot gas prices have mostly remained above €100 ($103)/MWh since Russia launched its invasion of Ukraine, and in recent days the August contract at the Dutch TTF hub has traded at above €150/MWh, with the price supported by increasing reductions in Russian gas flow and this week, by industrial action in Norway.
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Parkmead earns on average $120/barrel of oil equivalent in netbacks in the Netherlands during the 12-month period, with a field operating cost of only $8.6/boe. Given it expects gas prices to remain elevated in the short to medium term, the company has chosen to remain 100% unhedged, it said.
The company has also benefited from a royalty deal it reached in July 2021 that doubled its financial interest in the Grolloo, Geesbrug and Brakel fields.
Looking ahead, Parkmead has secured a rig for a two-well drilling campaign off the Netherlands. The rig should arrive early in the fourth quarter of this year, and the wells it drills will target 37.2bn ft3 in mid-case, gas in place in Rotliegendes reservoirs at the Diever site. These wells could be quickly tied up to produce if successful, it said.