The Aberdeen energy firm has also reached an agreement to increase its stake in the Skerryvore project from 30% to 50%. Parkmead will continue as operator on the licence and Skerryvore will be the company’s first operated exploration well. Going forward, this will be a joint venture with partners Serica Energy Limited and CalEnergy (Gas) Limited, holding a 20% and 30% stake respectively.

This comes after approval was received from the North Sea Transition Authority (NSTA) to enter the next phase of this licence allowing drilling to commence in the high-impact Skerryvore prospects.

The planned well will target the main stacked exploration prospects, at Mey and Chalk level, which studies indicate could contain 157 million barrels of oil equivalent in the P50, most likely case.

Tom Cross, Parkmead’s executive chairman, commented: “Parkmead’s technical team has made significant progress on the licences held by the Company and the decision to proceed with drilling the Skerryvore prospects is a major milestone.

“Parkmead will continue to evaluate the exploration potential of other licences it holds. We are seeing renewed UK government interest in the North Sea, as it seeks to bolster energy security, and we are excited by the opportunities that exist within our assets in this prolific region.

“Increasing our stake in Skerryvore comes on the back of delivering record gas revenues this year in the Netherlands. We will continue to focus on building a portfolio of high-quality energy projects through acquisitions, organic growth and the active management of our assets across all energy sectors.”