Under the deal, the companies will 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

In addition to working together in the anticipated UKCS 27th Licensing Round, the companies are also looking at joint acquisition opportunities in the identified areas.

DEO and Parkmead have also agreed 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.