DEO Petroleum Takes Stake in Nexen's North Sea Assets
DEO Petroleum updated proposed acquisition of North Sea assets from Nexen, placing to raise £16 million and readmission to trading on AIM.
- Conditional agreement to acquire 42.08 percent. working interest in certain license areas in UK Central North Sea from Nexen
- Proposed placing of ordinary shares to raise £16 million (before expenses) at 45 pence per ordinary share
- Proposed acquisition constitutes a reverse takeover under AIM Rules - shareholder approval to be sought at general meeting
- Application to be made to London Stock Exchange for enlarged share capital to be admitted to trading on AIM
- Licenses to be acquired are P588 (Blocks 15/21c (All) and 15/21b (Residual Area)) and P218 (Block 15/21a (Residual Area)), referred to as Perth Core, Perth North, Perth Beta Terrace and Perth Beta East
- Temporary suspension expected to be lifted on October 8, 2010 upon publication of AIM Admission Document
David Marshall, Chief Executive Officer, commented, "This is an exciting time for DEO as we make our first acquisition. We have a proven and experienced management team who have successfully developed and commercialized North Sea assets in recent times. By applying advanced subsea technology and first class drilling operations to stranded assets we aim to become the leading independent operator of high value subsea developments in the Central North Sea."