LONDON: Parkmead, a company focusing on gas, oil, and renewable energy projects, has agreed to sell its subsidiary, Parkmead (E&P) Ltd, to Serica Energy (UK) Ltd.
The subsidiary holds Parkmead’s UK offshore oil licenses and some gas licenses in the Netherlands. However, Parkmead will keep its Dutch gas fields and UK wind farm.
Parkmead will receive £14 million in guaranteed cash payments and up to £120 million in contingent payments. Here’s the breakdown:
– £5 million paid immediately when the sale completes.
– £9 million paid in three installments over the next three years.
– Up to £120 million paid based on future oil discoveries and approvals.
This sale will help Parkmead focus on its Dutch gas fields and renewable energy projects in the UK. The firm cash payments will strengthen Parkmead’s financial position, and the contingent payments offer potential future benefits without further financial risk.
Parkmead’s Executive Chairman, Tom Cross, expressed excitement about the transaction, highlighting that the sale allows Parkmead to pursue new growth opportunities in natural gas and renewable energies.