Aberdeen firms Parkmead Group and DEO Petroleum announced a “strategic alliance” yesterday, paving the way for collaboration on projects.
The pair have agreed to pursue joint opportunities and work together on a 50:50 basis in three areas within the UK central North Sea.
They said their partnership would run initially until December 2013. In addition to working together in the anticipated UK continental shelf 27th licensing round, Parkmead and DEO said they were also looking at joint acquisition opportunities in the areas covered by the deal.
Parkmead is a specialist oil and gas investment and advisory firm led by former Dana Petroleum chief executive Tom Cross, while oil and gas company DEO was set up in 2009 to seek acquisitions of North Sea assets.
The two companies have agreed, subject to regulatory consents, that Parkmead will act as exploration operator for the partnership during the application, bidding and exploration phases.
DEO will become development operator following commercial discoveries.
Mr Cross said: “This strategic partnership is a win-win for both companies.
“We are very pleased to be working with DEO, whose core skills are entirely complementary to Parkmead’s. Our combined teams share a deep understanding of the North Sea and this collaboration will allow both companies to create and accelerate significant value for our respective shareholders.”
DEO chief executive David Marshall said: “We are delighted to join forces with Parkmead in pursuing opportunities in these key areas of the UK central North Sea.
“The strategic partnership offers DEO the opportunity to expand into areas beyond our core Perth assets, where our existing relationships are strong and unchanged.
“Parkmead Group has an outstanding team of industry professionals with a proven track record of identifying excellent exploration and appraisal targets. DEO’s core expertise in development and production makes this a very strong joint-venture grouping. Together we can bring the full range of skills to the life cycle of prospective oil and gas assets.”
