Parkmead, the UK and Netherlands focused oil and gas firm, has doubled its stake to take full ownership of a key North Sea field.
The firm today announced it will acquire a 50 per cent interest in a UK North Sea licence from Verus Petroleum for an undisclosed sum. The area contains the Farne Extension prospect and a further four prospective leads.
The asset, located in the Southern Gas Basin, is currently estimated to hold 175bn cubic feet of gas.
Shares in the explorer, which is listed on London's Alternative Investment Market (Aim) lifted 6.3 per cent at 48.9p in morning trading.
"We are delighted to double our stake in this attractive area, which expands Parkmead’s portfolio in the Southern Gas Basin," said Tom Cross, executive chairman.
"Parkmead has a 100 per cent track record of drilling success in the UK Southern Gas Basin to date, with successful wells drilled at Platypus and Pharos. The team at Parkmead is working intensively to evaluate and execute further value-adding acquisitions in our core areas of the UK and Netherlands."
The company has drilled two wells in the basin so far - a horizontal appraisal well at Platypus, which flow tested at 27m cubic feet per day, and an exploration well at Pharos, which discovered a new UK gas field.
Parkmead will now obtain new, high-quality 3D seismic data in order to refine the asset's largest targets.