Parkmead is delighted to announce that a new gas field has been discovered in the Netherlands by the Group’s latest exploration well.

The Diever-2 well, targeting the Diever West exploration prospect, was drilled on behalf of the co-venturers by Vermilion Energy using the Explorer TB2100S drilling rig. The well reached a Total Depth (TD) of 7,457 feet and gas was discovered in a good quality Rotliegendes age sandstone reservoir. The well discovered a significant 157 foot gas column, with both net pay and porosity values that have exceeded pre-drill expectations. Vermilion will set production casing in the well prior to testing and it is expected that Diever West will be tied into existing production facilities in the area.

Diever West is located in the Drenthe IIIb production licence, onshore Netherlands. Parkmead’s co-venturers in the licence are Vermilion Energy (operator), NAM and EBN.

Skerryvore Exploration Work Ahead of Schedule

The Company is also pleased to announce that a site survey has begun at the Parkmead operated Skerryvore oil prospect. Skerryvore was awarded to Parkmead under the UKCS 27th Licensing Round and is located in the Central North Sea. It consists of two stacked prospects at Palaeocene and Chalk level. The Skerryvore Palaeocene prospect is thought to be a southerly extension of the Talbot oil discovery to the north, and the deeper Skerryvore Chalk prospect shows a similar seismic response to the neighbouring Cawdor discovery. Parkmead owns a 30.5 per cent. stake in the Skerryvore area. The survey will provide detailed technical information on the Skerryvore site ahead of the prospect being drilled in 2015. The Skerryvore prospect has the potential to contain up to 122 million barrels of recoverable oil on a most likely, P50 basis.

Tom Cross, Executive Chairman, commented:

"We are delighted to report that a discovery has been made at Diever West. This new field provides an excellent, additional near-term production opportunity for Parkmead.

Exploratory work is already underway at the exciting Skerryvore oil target. Skerryvore has the potential to add major value to Parkmead’s growing asset base".