Deo targets 2013 for first oil from its Perth field

The company, which recently set up a partnership with former Dana boss Tom Cross' Parkmead to look at potential acquisitions, expects to submit its plans for developing the field by the end of September.

The update came as Deo announced its full-year losses widened from 80,000 in 2009 to 800,000 in 2010 following a share placing last year to raise 16 million to fund the purchase and development of the Perth field.

Deo chief executive David Marshall described 2010 as "an extremely successful year".

"At the beginning of the year we set out a strategy to become a leading independent oil and gas player within the UK continental shelf (UKCS) and with the acquisition of the Perth assets we are now a step closer to achieving this," he said.

Marshall noted that the firm was on track to deliver a field development plan for Perth to the Department of Energy and Climate Change by 30 September and expected approval to be granted by the first quarter of 2012 with first oil targeted in 2013.

Deo also highlighted acquisition opportunities arising from the recent increases in North Sea taxes announced in the last Budget. It believes the move will accelerate asset disposal by large oil companies "in favour of deploying their capital in other parts of the oil producing world".

Deo recently announced it had entered into a joint strategic partnership with Parkmead to explore opportunities in three specific North Sea locations.

The two firms will work together on acquisition opportunities as well as bidding for new licences in next year's UK continental shelf licensing round.

"Both companies have a deep understanding of the North Sea, complementing one another in their core skills, and we believe this collaboration will allow us to deliver further value to all our shareholders," said Marshall.

Shares in Deo closed unchanged at 44.5p.