Deo lifted by share placing and Perth deal

DEO Petroleum, the Aberdeen-based oil and gas company, yesterday saw its market value leap after completed a placing of shares and its first acquisition.

The company raised 16 million by placing 35 million shares to fund the acquisition of a 42 per cent interest in a number of licences in the Perth exploration area of the North Sea from Nexen Petroleum. Shares finished the day at 55p, compared to the placing price of 45p and valuing the company at more than 23m compared to just over 4m at Monday's close.

Chief executive David Marshall said : "We are delighted to have completed the acquisition of the Perth assets which will provide the company with a solid platform from which to grow. Our aim is to become a leading independent oil and gas player. These assets are the first step in this strategy."