Deo Petroleum Share Discussion Threads

[rhubarbe] 27/3/2012 20:40

Yes, that was it but AFAIA that was the only announcement that ever came out on the subject. Nothing else was ever announced.

[the marlboro man] 27/3/2012 20:38

Found it now.. But doesn't explain much.

12 May 2011

DEO Petroleum plc

("DEO" or "the Company")

DEO AND PARKMEAD SIGN STRATEGIC PARTNERSHIP IN CENTRAL NORTH SEA

DEO Petroleum U.K. Limited ("DEO") and the Parkmead Group plc ("Parkmead") 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, DEO and Parkmead 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.

[rhubarbe] 27/3/2012 20:35

I don't thik so. I rather think that Tom Cross was supposed to be the silver bullet with his City connections.

Of course, the deal may be done and dusted - plenty other oilers have announced debt funding of late - and we just don't know about it yet.

[the marlboro man] 27/3/2012 20:33

Not thinking of investing in Parkmead as it does indeed look way overvalued. But thought they signed an agreement with DEO a while back? Was thinking maybe they had cash to farm-in to Perth.

[rhubarbe] 27/3/2012 20:29

Premier not my fave, TBH. Parkmead (IMHO) is hugely overvalued but strange things happen at sea.

[the marlboro man] 27/3/2012 20:27

Agreed, TRAP probably too small of a company. A Premier Oil or the likes.. Must have a look into the Parkmead thing a little more.

[rhubarbe] 27/3/2012 20:23

What, Lybster?

Oh, you mean Athena. Many a slip as they say.

No, it needs a bigger fish than TRAP, methinks.

[the marlboro man] 27/3/2012 20:21

Don't know much about them or how much cash they have. Thought TRAP might have jumped on board, but they played it safe with producing assets.

[rhubarbe] 27/3/2012 20:17

Virgin Oil, perhaps?

[the marlboro man] 27/3/2012 20:15

Surprised there hasn't been a bid here with such a low market cap.

A placing is out of the question now with such a low share price So a farm-in agreement looks like the only option. They are tied up some way with Parkmead/Cross, but I forget the details. Do Parkmead have much cash lying around, I wonder?

If DEO own 51% of Perth, then there's plenty of scope for a farm-out. The share price would then rise accordingly (as the current valuation is tiny), thus enabling them to do a placing (at a much higher price) to raise the rest of the costs. DEO's must raise £110m to to develop Perth.

Not invested here, just trying to get my head around it. Perth isn't exactly a small field. Perth Core 14mmbbls Net 2C, 85% COS. Perth North 8.3mmbls (prospective) ,77% COS.

[rhubarbe] 25/3/2012 12:48

I wait with bated breath.

[bigbigdave] 25/3/2012 08:10

ST

BP's £2bn North Sea sale


BP has launched its largest ever auction of North Sea oil fields amid a new wave of interest sparked by the chancellor's tax breaks for the industry.

Assets worth close to £2 billion have been put on the block by the oil giant, according to industry sources.

In a separate North Sea deal, Kuwait's national oil company is in advanced takeover talks with Ithaca Energy, the £500m producer listed in London and Toronto.

Both potential deals received a boost from George Osborne's budget last week. The chancellor pledged to cover up to 75% of the "decommissioning" costs of old fields, which companies must pay to dismantle and clean up when reservoirs have run dry.

The lack of clarity about whether the Treasury would cover its share of the future liabilities, which run to tens of billions of pounds, has been one of the biggest barriers to North Sea takeovers.

Sellers regularly required buyers to guarantee all future costs.

The new guarantee largely eliminates that problem and could lead to a wave of takeovers. Osborne also revealed breaks for developers of small fields, counteracting the effects of the surprise tax rise

[talkman2] 23/3/2012 12:27

Was this good news ? the market has not even blinked ! strange markets at the moment.

[bomfin] 23/3/2012 07:38

And a near £50 million improvement to total field economics.

Government won't get any cash from Perth if field doesn't go ahead.

[optimist at large] 23/3/2012 07:08

From the rns:

"This will reduce DEO's tax payable by approximately GBP25 million over the life of the field, improving project economics."

Current Market cap: 12.4m

[christianf12] 21/3/2012 12:59

Good news in budget for North Sea oilers!

[christianf12] 21/3/2012 11:57

What is the max offer at 30p guys?

[greyingsurfer] 21/3/2012 11:56

"I think that a plan for Perth has to be submitted by 31st march or else deo lose the field"

FDP had to be submitted by 30th Sept, 2011 - and was.

Estimated time for decision at submission was 6 months - which would be 31st March, but that was only an estimate.

[christianf12] 21/3/2012 11:18

What is the max offer at 30p guys?

[rhubarbe] 21/3/2012 10:46

Perth ES submitted 18th January 2012.

From Faroe website:

Faroe Petroleum is working closely with the operator, Deo Petroleum, to address technical challenges relating to development of the Perth field, and will investigate further exploration and appraisal opportunities on the licence block. On 30 September 2011 the operator submitted a draft field development plan to allow the environmental statement approval process to commence. Further refinements of the project are expected during the next six months ahead of project consent.