Deo Petroleum PLC : Gamma/Spaniards Amalgamation Agreement

DEO Petroleum PLC ("DEO" or "the Company")

Gamma/Spaniards Amalgamation Agreement

London, 12 January 2012
DEO Petroleum plc, the oil and gas development and production company focused on the UK Continental Shelf ("UKCS") region of the North Sea, is pleased to announce 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 the agreement 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."
12 January 2012
Enquiries:

DEO Petroleum plc
David Marshall, Chief Executive Officer	+ 44 (0) 1224 548777
Heather Ruth, Communications Officer
Canaccord Genuity (Nominated Adviser and Joint Broker)
Charles Berkeley / Henry Fitzgerald-O'Connor	+ 44 (0) 207 050 6500
FirstEnergy Capital LLP (Broker)
Hugh Sanderson / Derek Smith	+ 44 (0) 20 7448 0200

College Hill
Nick Elwes / Alexandra Roper	+ 44 (0) 20 7457 2020

Notes to editors:
DEO Petroleum
DEO is an Aberdeen based company whose strategy is to invest in North Sea oil development and production projects with the potential to generate high value returns for shareholders. DEO's ambition is to be a leading independent energy company within the UK Continental Shelf sector with a reputation for technical and commercial innovation and dynamic project delivery. DEO has a highly experienced management team who will seek, within its asset portfolio, to design creative development solutions particularly where there are technical and/or other challenges, to execute the project delivery of that solution, and to operate throughout the development and production phase of the asset's life-cycle.
www.deo-petroleum.com
Mike Cooper B.Sc. (Hons.) in Geological Sciences and M.Sc. in Petroleum Geochemistry and DEO's VP Exploration & Subsurface, who has over 30 years' experience in the oil exploration and production industry, has reviewed and approved the technical information contained in this announcement.