Centrica, the parent company of British Gas, has signed an agreement with Bow Valley Energy to acquire its 66.67% equity in the UK segment of the Peik field, which straddles the UK continental shelf and the Norway median line, for GBP20.4 million in cash.
According to the company, the agreement, which is subject to pre-emption and approvals, would add to Centrica’s existing holdings in the Norwegian portion of the Peik field.
Following further capital investment of around GBP140 million, Centrica expects to recognize 72 billion cubic feet equivalent (bcfe) of gas and oil reserves, of which 78% is gas.
Centrica said that all of the gas is uncontracted and production is currently scheduled to start around the end of 2012. The profits from production will be subject to the normal UK tax rate for offshore gas production, which is currently 50%.
Earlier in the last week of December 2008, Centrica said that by the European Commission approving EDF SA’s offer for British Energy, subject to certain conditions, and Lake Acquisitions Limited’s announcement of acceptances as of the first closing date. As described in its prospectus published on 31 October 2008, Centrica continues to be in discussions with EDF SA regarding the possible acquisition of a 25% stake in Lake Acquisitions Limited. As requested by the Takeover Panel and for the purposes of Rule 2.8 under the Code, Centrica confirms it does not intend to make an offer for British Energy under Rule 2.5.