PARKMEAD AND DEO SIGN STRATEGIC PARTNERSHIP IN CENTRAL NORTH SEA
The Parkmead Group plc ("Parkmead") and DEO Petroleum U.K. Limited ("DEO") are pleased to announce the signing of a strategic alliance agreement pertaining to certain areas of the United Kingdom Central North Sea. The companies have agreed to pursue joint opportunities and collaborate together on a 50:50 basis in three specific areas within the UK Central North Sea. The collaboration arrangements in these areas will initially span the period through to December 2013. In addition to working together in the anticipated UKCS 27th Licensing Round, Parkmead and DEO are also looking at joint acquisition opportunities in the identified areas. The parties have also agreed, subject to the necessary regulatory consents, that during the application, bidding and exploration phases Parkmead will act as exploration operator for the partnership, and following commercial discovery DEO will assume the role of development operator.
Tom Cross, Executive Chairman of Parkmead commented:
"This strategic partnership is a win-win for both companies and we are very pleased to be working with DEO, whose core skills are entirely complementary to Parkmead's. Our combined teams share a deep understanding of the North Sea and this collaboration will allow both companies to create and accelerate significant value for our respective shareholders."
David Marshall, DEO's Chief Executive Officer commented:
"We are delighted to join forces with Parkmead in pursuing opportunities in these key areas of the UK Central North Sea. The strategic partnership offers DEO the opportunity to expand into areas beyond our core Perth assets, where our existing relationships are strong and unchanged. The Parkmead Group has an outstanding team of industry professionals with a proven track record of identifying excellent exploration and appraisal targets. Parkmead is particularly knowledgeable about opportunities and assets in this region. DEO's core expertise in development and production makes this a very strong joint venture grouping; together we can bring the full range of skills to the life cycle of prospective oil and gas assets."
The Parkmead Group plc
+44 (0) 1224 622200
Tom Cross, Executive Chairman
Niall Doran, Chief Executive Officer
Kathryn Ramsay, Investor Relations
Charles Stanley Securities
+44 (0) 20 7149 6000
Nominated Adviser & Broker
Marc Milmo/Carl Holmes
College Hill Associates
+44 (0) 20 7457 2020
DEO Petroleum plc
+44 (0) 1224 672111
David Marshall, Chief Executive Officer
Heather Ruth, Communications Officer
Merchant Securities Limited (Nominated Adviser)
Lindsay Mair / Virginia Bull
+44 (0) 20 7628 2200
FirstEnergy Capital LLP (Broker)
Hugh Sanderson / Derek Smith
+ 44 (0) 20 7448 0200
Notes to editors:
Parkmead is an independent oil and gas company that is listed on AIM on the London Stock Exchange (symbol: PMG).
Parkmead's primary focus is in the oil and gas exploration and production sector, targeting transactions at both an asset and corporate level. The Company is seeking to exploit exploration and production opportunities to build a significant new independent oil and gas company and has recently appointed a core oil and gas team. Parkmead's growth plans will be delivered through the combined knowledge, experience and strong track record of its team members and will draw upon the team's extensive industry and government relationships in the oil and gas sector.
Over the last year, Parkmead's capabilities have been significantly enhanced through the acquisition and integration of Aupec Limited ("Aupec"). As a result, going forward the Group plans to actively pursue investment and advisory opportunities throughout the North Sea, and internationally, using the combined capabilities of the enlarged Parkmead Group.
Through its wholly owned subsidiary, Aupec, the Group provides petroleum economics, benchmarking and valuation expertise to a wide range of government bodies and international oil and gas companies. Aupec has to date worked with over 100 governments, national oil companies, majors and independents, across the world, as well as a number of multi-national agencies such as the European Commission and the World Bank. Aupec is currently undertaking an important benchmarking project for a group of the world's most eminent super-majors.
DEO is an Aberdeen based company whose strategy is to invest in North Sea oil development and production projects with the potential to generate high value returns for shareholders. DEO's ambition is to be a leading independent energy company within the UK Continental Shelf sector with a reputation for technical and commercial innovation and dynamic project delivery.
DEO has a highly experienced management team who will seek, within its asset portfolio, to design creative development solutions particularly where there are technical and/or other challenges, to execute the project delivery of that solution, and to operate throughout the development and production phase of the asset's life-cycle.
DEO currently holds a 42% interest in the Perth Licence area in the UK Central North Sea and was appointed Operator in December 2010. The Perth Licence area has c.20m (gross) boe mid case contingent resources, with further exploration targeted in the Perth North, Gamma, Dolphin and Sigma Blocks.
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