Parkmead has announced the completion of drilling activities at a well in the Netherlands, which is now ready for tie-in to production.
The LDS-01 well was the first of a two-well campaign on the Drenthe VI concession targeting several onshore gas prospects.
Shares closed yesterday's trading 7% - or 3.7 pence - higher at 56.3p off the back of the announcement.
Tom Cross, executive chairman at the independent energy company, commented: "We are delighted to announce a gas discovery from the first well of the two-well LDS drilling campaign - the immediate proximity to production infrastructure allows for an extremely short tie-in period, and we expect first gas to be on-stream within the first quarter of this year."
The stock exchange update noted that this will provide Parkmead with immediate net production and cashflow, de-risking follow-on prospects that the LDS-02 well is targeting.
Cross continued: "Parkmead's assets in the Netherlands continue to yield additional gas discoveries and so enhance production from this prolific onshore region.
"Our existing onshore gas fields are performing exceptionally well, with very low operating costs of less than $9 per barrel equivalent due to astute financial and operational discipline."
The AIM-listed group is Aberdeen-headquartered, with its drilling focus being off the Netherlands coast.
It currently produces natural gas from four fields and holds significant additional oil and gas interests across the UK and Dutch sectors.
Parkmead also owns and operates the Kempstone Hill wind energy company, producing electricity direct to the UK grid.
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