(Alliance News) - Energean Oil & Gas PLC said Monday it has agreed to sell Edison Exploration & Production SpA's UK and Norwegian assets to Neptune Energy Group Holdings Ltd for USD280 million in total.
The Norwegian assets include a 15% interest in Nova and 10% in Dvalin, which are both gas developments offshore Norway.
Meanwhile, the UK assets comprise an 11% working interest in Scott, 16% in Telford, 68% in Tors and 80% in Wenlock, which are gas fields offshore UK. There is also a 3.1% working interest in the Markham gas field, 25% in the Glengorm gas condensate discovery, and 10% in the Isabella licence.
Neptune will pay an initial USD250 million in cash, with an additional consideration of up to USD30 million.
The additional USD30 million is depending on Neptune producing proved and probable reserves in excess of 16 million barrels of oil equivalent from the Glengorm field.
The sale of assets is conditional on Energean's completed acquisition of Edison E&P. In July, Energean agreed to acquire Edison for USD750 million, with an additional contingent consideration of USD100 million payable following first gas from the Cassiopea development, offshore Italy.
Energean's UK and Norway asset sale is expected to be completed in early 2020. Energean will use the proceeds from the sale to strengthen its balance sheet.
"At the time of announcement, we committed to our shareholders that we would seek to dispose of non-core assets that do not adhere to our strategy. I am delighted to be able to make this announcement today, which demonstrates our commitment and capability to deliver upon our stated goals," said Chief Executive Mathios Rigas.
"Neptune is a leading player in the UK and Norway upstream sectors and, as such, we are convinced that under Neptune's ownership, Edison E&P's UK and Norway teams will benefit from the increased focus and investment that will result from this strategic alignment," Rigas added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Energean Oil & Gas (ENOG)