Parkmead raises $66 million to fund North Sea expansion
BY BRIAN SWINT
LONDON (Bloomberg) -- Parkmead Group Plc, the UK oil company run by former Dana Petroleum Plc CEO Tom Cross, raised $66 million to fund its North Sea expansion.
Parkmead will use the funds to develop existing assets as well as to buy other companies or fields, it said in a statement in London today. After the placing to institutional investors, the shares rose as much as 4.7 percent and traded up 3.1 percent at 266 pence as of 10:23 a.m..
Parkmead’s market capitalization has grown to 184 million pounds ($305 million) from about 6 million pounds in 2010, when Cross began the business after selling Dana to Korea National Oil Corp. Cross started Dana with 180,000 pounds in 2004 and sold it for 1.9 billion pounds.
“We think of this as an accelerated Dana Petroleum,” Cross said in a telephone interview in London today. “We have a large management stake at Parkmead and we’re going to drive it on for the next few years.”
The company’s spending plans are divided about half and half between exploration and production, Cross said. It will use funds from the placing to accelerate drilling plans and to bolster output at the Athena field, as well as for mergers and acquisitions, it said.