PARKMEAD Group, the oil and gas firm run by Tom Cross, moved closer to taking control of DEO Petroleum after winning backing from investors holding the majority of shares in the company.
Aberdeen-based Parkmead crossed the threshold after winning an irrevocable undertaking from RAB Capital in respect of DEO shares representing 8.1% of those in issue.
Parkmead has received irrevocable undertakings regarding 24,257,944 DEO shares representing, in aggregate, approximately 56.3% of the issued ordinary share capital of DEO Petroleum.
Recommended by the company's board, the two-for-one share offer values DEO at £12.7 million.
The acquisition would give Parkmead Group a majority stake in the undeveloped Perth oil field in the North Sea, which DEO Petroleum has been working to bring into production in 2014.
In its annual results announcement yesterday, DEO said: "Due to international demands on the supply chain, access to development equipment is very tight.
"This may impact the Perth 2014 first oil schedule previously expected by the board of DEO Petroleum, and discussions with Perth partners on optimum timing are currently in progress."
But DEO has received confirmation from the Department of Energy and Climate Change that there are no environmental objections to the issue of consent for the proposed development.
DEO's chief executive David Marshall said: "The recently announced proposed acquisition by Parkmead will not only help DEO progress the Perth development but also to pursue other opportunities in key areas of the UK Central North Sea."
DEO made an operating loss of £0.6m in 2011. It had £14.9m net assets at December 31.
Mr Cross joined Parkmead following the hostile £1.9 billion takeover of the Dana Petroleum business he developed by Korea National Oil Corporation.
The acquisition and the resolutions required to implement a related scheme of arrangement will be put to DEO shareholders at Court and General Meetings, which are expected to be held by July 20.
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