The Parkmead Group plc (Parkmead) and DEO Petroleum U.K. Limited (DEO) declarethe signing of a strategic alliance agreement pertaining to certain areas of the United Kingdom Central North Sea. The companies have agreed to pursue joint opportunities and collaborate together on a 50:50 basis in three specific areas within the UK Central North Sea. The collaboration arrangements in these areas will initially span the period through to December 2013. In addition to working together in the anticipated UKCS 27th Licensing Round, Parkmead and DEO are also looking at joint acquisition opportunities in the identified areas. The parties have also agreed, subject to the necessary regulatory consents, that during the application, bidding and exploration phases Parkmead will act as exploration operator for the partnership, and following commercial discovery DEO will assume the role of development operator.

Tom Cross, Executive Chairman of Parkmead commented, 'This strategic partnership is a win-win for both companies and 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.'

David Marshall, DEO's Chief Executive Officer commented, '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. The Parkmead Group has an outstanding team of industry professionals with a proven track record of identifying excellent exploration and appraisal targets. Parkmead is particularly knowledgeable about opportunities and assets in this region. 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.'

Tags: DEO Petroleum, Parkmead Group