Parkmead Regulatory News (PMG)

02 August 2012

The Parkmead Group plc

("Parkmead", "the Company" or "the Group")

Strong Results from Platypus Appraisal Well in UK Southern North Sea

The Parkmead Group is pleased to announce strong results from its Platypus gas appraisal well in the Southern North Sea, which recorded a test flow rate of 27mmscf per day on a 96/64" choke.

Well 48/1a-6 was spudded on 11 April 2012 with the Ensco 80 jack up drilling rig. The well reached a total measured depth of 14,175 feet on 19 June having successfully drilled a 3,100 foot horizontal section within the reservoir. A Drill Stem Test was successfully completed on 23 July and the well is being suspended for use as a future production well.

The Dana-operated Platypus gas field is located in Block 48/1a in the UK Southern North Sea. It was discovered in 2010, when the Dana-operated 48/1a-5 well encountered significant gas bearing Lower Leman Sandstone reservoir.

Parkmead holds a 15% interest in the Platypus gas field. Other partners in the venture are Dana Petroleum plc (Operator 59%), First Oil Expro Ltd (11%) and CalEnergy Gas Ltd (15%).

Tom Cross, Executive Chairman of Parkmead, commented:

"We are delighted to report successful and conclusive results from Parkmead's first well in the North Sea and will be working with our partners to move ahead with the development of the significant gas field at Platypus. This is a very exciting time for Parkmead as the Group's oil and gas portfolio continues to grow rapidly, giving Parkmead a balanced asset base of production, development, appraisal and exploration opportunities."

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Notes to Editors:

1. 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 upstream oil and gas exploration and production sector, targeting transactions at both asset and corporate levels.

2. In November 2011, Parkmead completed the acquisition of stakes of 15% each in UK Blocks 48/1a, 47/5b and 48/1c containing the Platypus gas field, discovered in 2010, and the Possum gas prospect.

3. In December 2011, Parkmead announced that it had signed an agreement to acquire stakes of 20% each in blocks 47/4d, 47/5d, 47/10c and 48/6c in the UK Southern North Sea, which contain the large Pharos gas prospect. This structure has the potential to hold up to 500 billion cubic feet of gas in place. These two acquisitions have marked important steps in Parkmead's first stage of its development as a new independent energy company. This acquisition completed in February 2012.

4. In March 2012, Parkmead announced that it had signed an agreement to acquire a portfolio of Netherlands onshore assets comprising four producing gas fields and two oil fields from Dyas B.V. The acquisition of these assets provides the Group with its first producing assets. At the effective date of the acquisition, 1 January 2012, these assets were producing at a rate of approximately 2,000 boepd, being 300 boepd net to Parkmead. In addition, the portfolio being acquired provides the Group with near term oil developments at Ottoland and Papekop with the former forecast to come onstream later in 2012 or in 2013.

5. In May 2012, Parkmead announced that it had reached an agreement on the terms of a recommended acquisition of the entire issued and to be issued ordinary share capital of DEO by Parkmead. The acquisition will be implemented by way of a Court sanctioned Scheme of Arrangement under Part 26 of the Companies Act 2006 (the "Scheme").The Scheme Circular, containing the terms and conditions of the Scheme, was posted to DEO Shareholders on 25 June 2012. All resolutions were passed at the Court Meeting and General Meeting held on 18 July 2012 to approve the Scheme and associated matters. In order to become effective, the Scheme requires to be approved by the Court. The Court Hearing seeking that approval is to be held on 8 August 2012.The Scheme is expected to become effective on 9 August 2012. DEO's principal asset is its interest in the Perth field in the UKCS. DEO owns 52% and is operator of the Perth Field. The Perth field is targeting Proven and Probable (2P) reserves of 21.5mmbls (net to DEO).

6. 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.

7. Through its wholly owned subsidiary, Aupec, the Parkmead 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 largest super-major oil companies.

For further information please refer to Parkmead's website at www.parkmeadgroup.com and Aupec's website at www.aupec.com