DEO Petroleum Announces Finalisation of Agreement for Blocks Gamma and Spaniards

DEO Petroleum plc, the oil and gas development and production company focused on the UK Continental Shelf (“UKCS”) region of the North Sea,  announces that the amalgamation agreement to combine the Licence P218 Block 15/21a Gamma Sub Area(“Gamma”) and Block 15/21g (“Spaniards”) areas has been finalised.

The parties to theagreement will now effect the relevant transfer documentation. A firm commitment well is expected to be drilled by Encore (Operator) in the third quarter of 2012. DEO has a carried interest of 12.62% and will make no cash contribution to the dry-hole cost of the first well. The remaining Gamma/Spaniards equity is held by Encore (28%), Nautical Petroleum (21%), Serica Energy (21%), Faroe Petroleum (8.4%), Maersk Oil (5.74%), and Atlantic Petroleum (3.24%).

David Marshall, DEO Chief Executive Officer Comments:

“We are delighted to announce the signature of the amalgamation agreement which will allow detailed well planning activities to be finalised. We look forward to the results of the commitment well later in 2012.”

[mappress]

Offshore Nieuws Staff , January 16, 2012 ; Image: Nautical Petroleum