Star Energy Regulatory News (STAR)

2 Apr 2007 07:04

Star Energy Group PLC02 April 2007 Star Energy Group plc Agreement to acquire 50% interest in Northern Petroleum's Waalwijk gas storage projects - Star Energy to acquire 50% of Northern Petroleum's interests in gasstorage projects on the Waalwijk field, Netherlands Star Energy Group plc ("Star Energy" or "the Company"), the gas storage andonshore UK oil and gas E&P company, announces that it has entered into anagreement ("The Agreement") with Northern Petroleum Plc ("Northern") to acquire50% of Northern's interests in any and all underground gas storage projects onits Waalwijk Production Licence ("The Licence") onshore The Netherlands. StarEnergy will provide all operator services for those projects. Under the terms of the transaction, Star Energy will pay: • an initial consideration of €970,000 to acquire 50% of Northern's interests in any underground gas storage projects within The Licence • Northern's share of costs on any such projects until final investment decision ("FID") • €2.25 million (50%) of the contingent consideration payable upon a FID being made on a gas storage project on The Licence within five years of completion Under The Agreement, Star Energy will acquire Northern's wholly-ownedsubsidiary, Overseas Gas Storage Limited, which owns 50% of Northern's rights inthe underground gas storage projects referred to above, for an initialconsideration of €970,000. The interests in the potential underground gas storage projects within theWaalwijk North reservoir are held 33.33% by Northern and 66.67% Essent EnergyGas Storage B.V. ("Essent"). The interests in all other potential undergroundgas storage projects within the rest of The Licence are held 50% by Northern and50% by Essent. Northern's above interests will be reduced to 16.67% and 25%respectively under the terms of The Agreement. In accordance with the AIM Rules - Guidance for Mining and Oil & Gas Companies,the information contained in this announcement has been reviewed and signed offby the Technical Director of Star Energy, Dr Melvyn Horgan, who has 26 yearsexperience as a reservoir engineer. Roland Wessel, Chief Executive of Star Energy, said: "This announcement adds to our portfolio of potential gas storage projects andunderlines Star Energy's position as one of the leading gas storage developers.The Waalwijk field is close to infrastructure leading to the Interconnectorpipeline linking the Continent to the UK. This is part of our plan to build amulti-site gas storage business onshore and offshore, in the UK and WesternEurope." 2 April 2007 Enquiries: Star Energy 020 7925 2121Roland Wessel, Chief Executive Financial Dynamics 020 7831 3113Ben Brewerton / Ed Westropp This information is provided by RNS The company news service from the London Stock Exchange