Deo Petroleum Share Discussion Threads

[lucky_punter] 29/5/2012 08:36

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.

[liquid millionaire] 29/5/2012 07:41

DAILY MAIL



Geoff Foster



29/05/12



Shares of North Sea oil minnow Deo Petroleum gushed 5.75p to 26.75 in response to an agreed £12.7m share exchange bid from Parkmead, 1.75p cheaper at 13p.

Former Dana Petroleum boss Tom Cross is the driving forcebehind Parkmead and believes the deal will add significant value for shareholders.
The enlarged group will have a wider base of oil and gas assets in the UK and Netherlands.


Read more:

[swiftnick] 29/5/2012 07:02

I feel better about this now that I have read this article about Tom Cross:

.

Maybe I'll keep my Parkmead shares after all.

[steve73] 29/5/2012 05:56

To think I sold PMG at 13 to buy these at 50 way back in late 2010 when PMG looked to be a basket case.....!

Oh well, at least now Perth may actually get monetised.

[afcal1972] 29/5/2012 03:18

Most of the directors are in at 13p here from June 2010. Not a bad return I guess for them. It is a shame that most of the long term private investors have come in since then at somewhere between 30 - 50p.(I average at 36p)

But is this deal just another bad traders day for the down trodden PI on AIM ?

Looking with retrospec at the 2 for 1 share deal as a way of buying PMG the numbers look a little better. You couldn't find a cheaper way of buying PMG on the market for less capital in the last 12/18 months or so.

Also I don't think many here would have expected DEO to succeed in developing the Perth and Spaniards assets alone without additional funding or massive share dilution so something had to happen.

The TC / Dana team connection has always been there. I originally bought DEO on a gamble that TC would join DEO but he (and his private money) went to PMG instead.

On a sheer gut feeling I am sticking around to see how things work out even though from a traders perspective the deal isn't one to write home about. After all, TC is a famously known as a deal maker and with the combined DEO/PMG team now in place there is potentially another Dana in the making.

So no selling for me by the looks of it for sometime. I wonder what Paul C is going to do.

[failedqs] 28/5/2012 23:36

Poor deal for you DEO shareholders! Overpriced PMG have no cash either, and their shareprice is underpinned by a NAV of about 3p if I recall properly!

Still Tom Cross may pull a rabbit out of the hat!

[seball] 28/5/2012 21:34

Not a good deal for DEO shareholders imo. PMG is overvalued imo... I don't hold either...

[rhubarbe] 28/5/2012 21:31

Christ. PMG shares? I just repapered the house, what the hell would I want PMG paper for?

[anotherardbeg] 28/5/2012 20:36

Ziblot what do you reckon for PMG tomorrow? I'd need to borrow to dive in.

[ziblot] 28/5/2012 20:32

Welcome to Pmg. I'm sure we'll do well together . I think Perth was on the cards for a farm in but as some say perhaps their were problems with Deo financing. Keep your shares and enjoy the journey .

[christianf12] 28/5/2012 20:12

Pmg going down on the news. Maybe pmg will go sub 10p Meaning 20pps to deo holders so maybe best to sell now?

[mr_dross] 28/5/2012 19:45

well fwiw this is a dead play now unless you fancy pmg paper .
which i dont so good luck im out tomorrow

[molatovkid] 28/5/2012 19:38

Too true Kim, It was going to be a long wait anyways...first oil 2014 - 2015?

Maybe we're going to be in the next Dana! Which would be nice....:-)

I reckon this has all been very hush hush to wrap the deal up before anyone gets wind of it and prepares a counter offer.

Maybe this will flush out a potential counter bidder....if its not too late

[kim_clay] 28/5/2012 19:27

You only need 75% of those that actually vote, not 75 % of the shareholders.
Done deal....what's he alternative... A slow horrible death and then 5p a share...?

[p o n a] 28/5/2012 19:02

yeh Mr M. read today's RNS a bit more.. there's a table showing the resource attributable to DEO.

[ireminisces] 28/5/2012 19:00

SO DO YOU THINK 75% WILL BE ACHIEVED OR SHAREHOLDERS TO BLOCK.

[mr macgregor] 28/5/2012 18:14

That was a cheeky edit Pona and a good discount to your initial estimate of £3 (good discount for Parkmead that is). Here's my take.
Deo have 52% of Perth with management assessment of 21.5m barrels net to Deo.
You can add 1.6 for Perth beta, 3.2 for dolphin, 8.4 for gamma central and 2.5 for sigma (TRACS consultancy 2C figures)giving a total of 37.2m barrels so that equates to 34p/barrel.
The Perth figure is a management estimate. If we go with TRACS 2C of 14.5m barrels it is 42p/barrel. With the budget concessions (£25m tax bonus) and Spaniards (12.6% interest - is that where you got your figure?) exploration to come later this year, you can safely say Parkmead have a steal. That's an understatement. Does the offer include a brown envelope?
Womder if there will be a counter bid.

[p o n a] 28/5/2012 17:14

Mid resource net to DEO = 25.6mboe

Parkmead paid £12.7m

50p / barrel

[p o n a] 28/5/2012 17:09

thanks ghh.

anyone do the sums ? How much Parkmead are paying per barrel ?

[fangorn2] 28/5/2012 16:58

I see GHH posted just prior to my copy&paste. Have therefore deleted.

[mr_dross] 28/5/2012 16:43

im lucky i only picked up 15k a few weeks ago so i will get out around level maybe a full english breakfast and a tea up after charges .

never mind .. we all need a good fry up no an again

[p o n a] 28/5/2012 16:42

Wonder what Mr Curtis thinks of this ?

[pyemckay] 28/5/2012 16:38

no mr dross, you are still getting a shafting then maybe a bit of fisting from deo directors