2009-09-21-2009-08-12-2009-08-12

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
187MM
Description

To acquire 70% interest in Breagh gas field in block 42/13a & 42/12a of U.K. North Sea from 6 stakeholders.

RWE Dea UK SNS Ltd., a subsidiary of German utility RWE Dea AG, plans to acquire a 70% interest in the U.K. North Sea Breagh gas field from six stakeholders including operator Sterling Resources Ltd., Calgary, (Toronto Venture: SLG) in a deal valued at approximately US$350 million, according to Reuters estimates. The Breagh gas discovery is in block 42/13a and 42/12a of the southern North Sea, 65 kilometers from the northeastern coast of England in the Southern Gas Basin. Development costs are expected to be in excess of US$1 billion. The sellers of Breagh Field are a consortium of Sterling Resources, EnCore (SNS) Ltd., EnCore Petroleum Ltd., RegEnersys Ltd., Stratic Energy Corp., Calgary, (Toronto Venture: SE), Faroe Petroleum (UK) Ltd. and Petro Ventures Ltd. Sterling will receive C$103 million for a 15% working interest in Breah and varying interests in surrounding exploration blocks. Encore SNS will receive US$68.8 million for its 15% interest. Faroe will receive US$41.6 million for its 10% interest. Stratic will receive US$61.8 million for its 10% interest. The other companies did not report the sale. RWE Dea will take over the majority of the Breagh gas field and operatorship. Sterling Resources will retain a 30% share in the asset. Standard Chartered Bank is advisor to the selling companies.