DEO Petroleum unveils first deal in North Sea from Nexen

DEO Petroleum, the Aberdeen-based oil and gas company launched to build up a portfolio of North Sea assets, will complete its first acquisition deal next week.

The company said yesterday it had received consent from the Department of Energy and Climate Change for 10.5 million of assets to be transferred from Nexen Petroleum.

The company is funding the deal, which will given DEO a 42 per cent interest in a number of licence areas 115 miles north east of Aberdeen, by raising 16m through a placing of shares at 45p each.

The new shares are also expected to be admitted for trading on AIM next week giving the company a market capitalisation of around 19.4m.

Partners in the Perth licence areas are Petro-Canada UK, Maersk Oil UK and Atlantic Petroleum UK. Dana Petroleum has an agreement to acquire Petro-Canada UK's interest.

DEO was founded by a number of industry veterans including David Marshall who was previously senior vice-president, operations and general manager of Oilexco's North Sea exploration business. Chairman Kevin Burke has 30 years' experience in strategic development of companies in the natural resources and oil and gas sectors.