2010-08-31-2010-08-12-2010-10-01

Acquired properties in Wildcat Hills area of AB, gaining 80 MMcfe/d.

Direct Energy, a subsidiary of Centrica Plc, Windsor, U.K., (London: CNA) has closed its acquisition of certain Alberta assets from Suncor Energy Inc., Calgary, (NYSE, Toronto: SU) for C$367.5 million.

The deal was originally estimated at C$375 million.

The assets include the Wildcat Hills properties near Cochrane, Alberta. Current production is approximately 80 million cubic feet of gas and gas equivalent per day.

Direct Energy's total production has now increased 80% to approximately 180 million cubic feet equivalent per day (95% gas). The properties also bring Direct Energy's upstream asset cover to approximately 35% of the load required by its North American retail natural gas customers.

Direct Energy upstream and trading president Badar Khan says, "Our initial impression of the strength of the Wildcat Hills assets, in terms of the expected natural gas production and dedicated staff, has been affirmed during the process of integrating it into our existing operations."

The Wildcat Hills properties were part of a larger strategic business realignment by Suncor, which include the sale all oil and gas producing assets in the U.S. Rockies region, certain noncore gas properties in Western Canada, all shares in Petro-Canada Netherlands BV and all Trinidad and Tobago assets. Remaining proposed divestments include certain gas assets in Western Canada and noncore North Sea assets.

The effective date of the deal is May 1.