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Real-Time news about Deo Petroleum (London Stock Exchange): 0 recent articles
|nicd: each DEO Share valued at 29.5 pence. This represents a premium of 40.5 per cent. over the share price of 21.0 pence per DEO Share on 25 May 2012.
Final Results for the year ended 31 December 2011
London, 7 June 2012 - DEO Petroleum plc, the oil and gas development and production company, is pleased to announce its final results for the year ended 31 December 2011 and an updated Competent Persons Report.
Proposed Acquisition of DEO by Parkmead
-- The boards of The Parkmead Group plc ("Parkmead") and DEO have agreed terms of a recommended offer under which Parkmead would, subject to shareholder approval, acquire the entire issued and to be issued ordinary share capital of DEO (the "Acquisition").
-- It is intended that the Acquisition be implemented by way of a Court sanctioned scheme of arrangement under Part 26 of the Companies Act (the "Scheme").
-- Pursuant to the Acquisition, which will be subject to the conditions and further terms set out in the Rule 2.7 announcement made on 28 May 2012 (the "Announcement"), "Scheme Shareholders" will receive two Parkmead Shares for each ordinary share of DEO.
-- Based on the price of a Parkmead Share of 14.75 pence, the Acquisition values the ordinary share capital of DEO at GBP12.7 million and each DEO Share at 29.5 pence. This represents a premium of 40.5 per cent. over the share price of 21.0 pence per DEO Share on 25 May 2012.|
|mr macgregor: My logic, greyingsurfer is that people selling this morning have taken the huff and are acting on emotion. I think that's an understandable reaction for those who have been holding for some time as the management (and George Osborne/Danny Alexander who precipitated the collapse in the share price of North Sea Juniors last year)have let them down.
I bought into Deo because I thought the Perth asset was way undervalued and I think it still is. I'm certain it's worth more than the 24p a share I'd get now so I am in no rush to sell.
I have some research to do on Parkmead but I do appreciate the dealmaking skill of Tom Cross. My main concern about Deo was the management's ability to attract the funding necessary to deliver on their aims. If the deal goes through that is less of a concern. I wouldn't rule out a counter offer either as the deal implies that independently assessed North Sea 2C resources are valued at a fifth of those elsewhere in the world. I don't agree with that. George was a clown last year but seems to have seen the error of his ways.|
|molatovkid: I suppose the real question is how much value does Tom Cross bring to the table?
Can he do another Dana?
By common consent he appears to have done a good deal for Parkmead here, maybe he has spotted a financing weakness and swooped in who knows?
As a future Parkmead shareholder - this is what i want to see from a CEO. A good deal maker who has an eye on aggressively building the company.
What I dont particularly want to see, is what we have just had from the DEO board - months of pretty much nowt, other than a deteriorating share price.
I guess you pays your money and takes your chance.....|
|hugepants: Agree with that. I sold at 25.5p. Happy with that because IMO the real value of this offer is about 10p per share for DEO shareholders because PMG's share price is 3 times overvalued. DYOR!|
|greyingsurfer: Anyone selling Deo at the price this morning shouldn't have held the shares in the first place.
Your logic escapes me. People didn't buy DEO because they wanted PMG paper. Many will feel that it's far better to take what can be obtained now in the market than ending up with shares in a company whose share price has little obvious means of support (other than DEO's assets).|
|p o n a: FoxDavies :
DEO Petroleum (DEO LN, 255p, ▼ 4.7%) - A lesson in Value and Worth: Parkmead has offered the regulation 30% premium to the prevailing pre-offer share price, valuing DEO at less than $1/bbl. DEO's management has recommended the offer. Who is failing who here? I am pretty certain that DEO's management believed at their IPO that they were worth more than that. Yes there is a lot of work for the management team to do before UKCS reserves can be valorised, but it is worth more than the $1/bbl being offered; if it were cash, it may be more understandable, but this is an all share deal. If a management team can have that little appreciation of their own worth, why should anybody else? The silver lining to the cloud is that DEO's shareholders can be assured that in Tom Cross, they will align themselves with a CEO who not only has a proven track record in generating value for shareholders, but maximises the value of the company's asset base. We agree with DEO's management that this offer should be accepted, although not for the same reasons. In this news:
Based on the price of a Parkmead Share of 14.75 pence, being the Closing Price of a Parkmead Share on 25 May 2012, the Acquisition values the entire issued and to be issued share capital of DEO at approximately £12.7 million, and each DEO Share at 29.5 pence. This is based on 43,109,931 DEO Shares in issue as at the date of this announcement.
The consideration of 29.50 pence for each DEO Share represents a premium of approximately:
40.5 per cent. over the Closing Price of 21.00 pence per DEO Share on 25 May 2012, being the last practicable date prior to this announcement; and
30.5 per cent. to the average Closing Price of 22.61 pence per DEO Share for the one month period up to and including 25 May 2012, being the last practicable date prior to the date of this announcement.|
|lucky_punter: Parkmead agrees £12.7 million deal to buy DEO Petroleum
DEO Petroleum (LON:DEO) shares closed Monday's session strongly after fellow North Sea oil firm Parkmead (LON:PMG) agreed a £12.7 million deal to buy the company.
Parkmead will issue two new shares in return for each DEO share.
|ghhghh: I had lunch with a larger oil company a few weeks ago. They really liked Perth and had unsuccessfully bid for it pre Deo.
I also got impression they would have bid for Deo if their paper reflected the value of their assets. This, of course is principle reason not more bids.
So I was reassured. If the industry likes Perth then Deo shareholders should be okay.
I wondered if recent share price rise to over 30p would increase chance of dilutive placing. Hopefully shares at 23p rules out a placing.
With Gavin Wilson holding nearly 30% he may be opening doors to financing offers.|
|ghhghh: Appears market panicking that Deo must raise £112m to fund 52% of their development costs for Perth but with market cap of only £8m an equity raise too dilutive.
Taking Edison's most recent Note and updating for 52% and 85% Chance of Commerciality
Perth Tartan = 20.8m gross *0.52 * $5.3 * 0.85 = $63.25m
Perth FPSO upside = 6.7m gross * 0.52 * $6.9 * 0.85 = $20.4m
Perth North = 15.9m gross * 0.52 * $5 * 0.30 = $12.4. (although latest CPR estimated CoC of 77%, up from 54%)
Total $96m or £60m.
Lets say Deo sell 30% of their 52% for pro rata £34.6m.
Development costs for remaining 22% now £47.5m - (22/52*£112m = £47.5m).
Deo finance 40%, hence borrow £19m.
Cash required therefore £47.5m less £19m = £28.5m.
Add 10%/£4.75m for contingencies takes cash required to £33.25m, leaving circa £1m for the gin bill.
Hence on Edison's figures (and with conservative risking of only 30% for Perth North), Deo could finance Perth and be left with 22%.
This 22% would be valued at 60p a share (plus £6m contingency cash worth 14p per share)
And would still have 12.6% of Spaniards which could be a multi bagger.
What worries me is that on this basis Deo could sell the whole company, subject to FDP, for > 140p per share and that seems insane with share price at 19p!
I spoke to Deo this morning and unaware of reason for last week's price fall.|
|triples: Here's Paul's post from the SQZ thread:
ghhghh - 12 Oct'11 - 09:47 - 1982 of 1985
Thanks for the heads up re Canadian Overseas - looks good value and I bought a few yesterday.
I know some of you are keen on Spaniards.
I've also been buying more DEO for this angle.
DEO trading at sgnificant discount to it's Perth development project. Richard Slape of Canaccord (using US$87.50 per barrel flat real/12% discount rate) reckons Phase 1 alone could be worth US$150 million. That's about 95p for DEO's 42% stake. The FDP was submitted end Sept and the big question mark is how will DEO fund their share of development with £14m market cap and only £3.5m cash. My guess is that they will farm out.
If we assume that Peth more than covers current share price, that leaves DEO's 12.6% stake in Spaniards in for free - they have carried interest for first well.
According to recent First Energy broker note, Nautical's Gamma/Spaniards prospect worth 181p to Nautical unrisked. That's £160m by my calcs.
DEO shares in issue only 42m so that's 370p a share versus 33p share price. Has anyone seen other broker note valuations for Gamma/Spaniards?
Serica have 21% interest and are paying 30% of first well cost. By my calcs SQZ's 21% interest worth £112m or 63p a share on pro rata basis.
DEO also has JV with Parkmead to acquire new projects with Parkmead doing the sourcing and DEO the development work. Parkmead trading at premium to NAV thanks to Tom Cross effect but DEO offers same opportunities at discount to NAV.|
Deo Petroleum share price data is direct from the London Stock Exchange