SSE Plc (SSE) - Increase in Equity Holding of Upstream Gas Assets
RNS Number : 0522R
14 November 2012
INCREASE IN EQUITY HOLDING OF UPSTREAM GAS ASSETS
SSE, through its wholly-owned subsidiary SSE E&P UK Limited, has entered into
an agreement with Perenco to increase its equity stake in three producing gas
fields in the Southern North Sea - Apollo, Minerva and Mercury. SSE will pay a
total cash consideration of US$52.75m (£33m).
SSE currently has a 35% equity interest in Apollo and Minerva, and a 26.67%
equity interest in Mercury. As a result of this deal SSE's equity interest in
all three fields will increase to 50%. Following Perenco's recent acquisition
of a larger package of assets from BP in the Southern North Sea, they will
hold the remaining 50% equity in the fields and become the Operator.
Net to SSE, on a proven and probable (2P) basis, the deal will increase SSE's
producing gas reserves by over 200 million therms over the life of the fields.
The transaction is expected to be completed by the end of the year.
David Franklin, Managing Director Energy Portfolio Management, said:
"Our decision to increase our equity stake in Apollo, Minerva and Mercury,
reflects SSE's growing confidence and expertise in owning producing gas
assets. These fields have performed well since we acquired them in 2011 and in
Perenco we have an experienced owner and Operator as a partner.
"SSE's upstream gas assets provide a good source of primary fuel and a hedge
for our gas generation and supply activities, and we are therefore proactively
seeking new opportunities to increase our presence in this sector where assets
can be acquired for a fair price."
This information is provided by RNS
The company news service from the London Stock Exchange
MSCDGBDBCGBBGDX -0- Nov/14/2012 07:01 GMT
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