The Parkmead Group, a London-based merchant bank focusing on investments in the oil and gas sector, has agreed to acquire consultancy Aupec through the issue of 235.3 million shares and £1 million in cash.

Aberdeen-based Aupec specialises in providing consultancy services for the energy sector. Clients include oil companies, government ministries and financial institutions. The company generated turnover of £2.7 million and net profit of £639,000 in 2008. Parkmead's share issue is worth £2.9 million at current market levels.

Niall Doran, CEO of Parkmead, said: '[The deal] further strengthens the high level financial, government, major energy company and technical relationships that we have in the oil and gas industry and comes at a time when demand for energy advisory and consultancy services has increased.'

In the year ending June 2008, Parkmead reduced pre-tax losses by 91 per cent to £400,000.