International law firm Stephenson Harwood LLP has advised The Parkmead Group plc (Parkmead), an AIM quoted independent oil and gas company, on its £14.5 million takeover of Lochard Energy Group plc (Lochard). Lochard is an independent oil and gas production, appraisal and development company focused on the UK Continental Shelf (UKCS).
The deal will increase Parkmead's production of oil and gas by over 400 per cent, and the combination of the two companies will create a stronger, more diversified portfolio of assets, balanced across the UKCS and the Netherlands. Stephenson Harwood advised on Parkmead's offer to Lochard shareholders of 0.385 Parkmead shares for each Lochard share held which valued the entire issued share capital of Lochard at £14.5 million. The transaction was structured by way of a scheme of arrangement under Part 26 of the Companies Act 2006.
This acquisition is in line with Parkmead's business strategy to exploit the exploration and production opportunities that exist in areas of the UKCS and the Netherlands, which involve developing North Sea assets that are too small to interest the major energy companies. Lochard has a 10 per cent stake in the Athena field 110 miles north-east of Aberdeen.
Commenting on the Lochard acquisition, Tom Nicholls, partner in the corporate group at Stephenson Harwood, said: "We are delighted to have advised Parkmead on its latest acquisition which will greatly help Parkmead achieve its ambitious long term growth plans to continue to source and fund exciting exploration prospects and development opportunities."
The Stephenson Harwood team was led by Tom Nicholls, with associates Guy Morgan and Luwisha Neskovic assisting. Lochard was advised by Eversheds LLP.