17th Sep 2007 07:00
Centrica invests to acquire North Sea gas assets Centrica plc, the owner of British Gas, today announced the purchase of theentire share capital of Newfield UK Holdings Limited, the UK subsidiary ofNewfield Exploration Company, for $486.4 million (£242 million) in cash. Theprice is subject to certain adjustments based on working capital andindebtedness. Centrica will take an 85 per cent operated interest in the Grove gas field whichstarted production in summer 2007, an 80 per cent interest in the Seven Seas gasdevelopment, the Sloop gas discovery and associated exploration acreage. Sam Laidlaw, Chief Executive of Centrica, said: "This important investment toacquire Newfield UK is in line with our strategy of increasing our level of gasreserves to supply our British Gas and European customers. As a result of theacquisition, we expect to add net gas reserves of up to 300 billion cubic feetof gas over the next three years, equivalent to more than a fifth of Centrica'scurrent UK gas reserves. "We will also benefit through equity gas being delivered into continentalEurope, close to our main customer base in Holland and Belgium. The acquisitionalso brings organisational capability and helps build our competitive advantagethrough the experience of operating development-stage gas fields." Enquiries: Centrica Investor Relations: 01753 494900Centrica Media Relations: 0845 072 8001 Notes:1/ Grove has been developed with a normally unmanned platform exporting gas viapipeline to the Venture operated Markham field and then to Den Helder in theNetherlands. Centrica's partner in the field is Sojitz, a Japanese conglomerate,with 15 per cent interest. Seven Seas is a development prospect which Centricawill operate with an 80 per cent interest, with Sojitz holding 20 per cent.First production is anticipated around 2010. Exploration acreage includesinterests in six licences within the Southern North Sea 2/ It is currently estimated that additional capital expenditure of around £150million will be required to realise the full gas reserves potential. 3/ The seller is Newfield International Holdings Inc. The purchaser is GB GasHoldings Limited, a subsidiary of Centrica plc. Copyright Business Wire 2007Related Shares:
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