Parkmead Group boss Tom Cross told the Press and Journal yesterday the oil and gas company was working on 11 acquisition targets.
He said the figure included both businesses and assets, while Aberdeen-based Parkmead was also planning an “active” part in the 28th licensing round for UK North Sea oil and gas drilling.
“We are looking at new [acquisition] opportunities,” he said, adding: “Some of them are companies and some are assets.”
The application process for the 28th licensing round has only just got under way, but Mr Cross said Parkmead had been “working on plans there” for about six months.
Parkmead’s chief executive and chairman was speaking after the group announced that an oversubscribed share placement raised £40million.
The money will be used to finance “ongoing capital commitments” as well as new projects.
Parkmead plans to accelerate high-impact drilling and add an exploration well on the Skerryvore oil prospect, one of two central North Sea licences awarded to the firm in the 27th licensing round.
Some of the proceeds from the share placement will go towards workover operations and possibly a new production well on the Athena oilfield in the outer Moray Firth.
Parkmead recently trebled its stake in Athena to 30%, after acquiring a 20% interest from German energy firm EWE in a cash and shares deal worth £6.8million.
The group is also accelerating exploration drilling on a string of “high quality” North Sea prospects, including Skerryvore, Possum, Blackadder and Davaar, and finalising preparations for applications for the 28th licensing round.
As for expansion, the firm said: “The recent acquisition of EWE’s 20% interest in the Athena oilfield demonstrates Parkmead’s focus on value-accretive deals.
“The directors believe there are similar opportunities for Parkmead to target, and certainty of funding and balance sheet strength is key to success in negotiations.”
Mr Cross is trying to replicate the success of fellow Aberdeen firm Dana Petroleum, where he was chief executive up until and just after a £1.67billion buyout by South Korea’s national oil company in 2010.
Stockbroker Charles Stanley Securities said yesterday Parkmead’s growth was consistently exceeding expectations.
“Parkmead has a track record of being extraordinarily efficient with capital when acquiring companies and assets,” it added.
Hugh Rich, Charles Stanley’s equity sales director, said the success of the share placement was “an impressive vote of confidence in executive chairman Tom Cross and his team at Parkmead, as well as in the company’s ‘accelerated Dana’ model.”