IGas Energy Stocks Up Onshore U.K. Holdings
To buy Star Energy Group, which holds onshore U.K production assets, gaining 2,800 BOE/d, 11.1 MMBOE 2P.
IGas Energy Plc, London, (London: IGAS) plans to acquire Star Energy Group Ltd. from PETRONAS International Corp. Ltd., a subsidiary of Malaysian state-owned oil company Petronas for US$172.7 million (£110 million).
The deal includes the U.K. onshore production assets of Star Energy but excludes certain non-U.K. assets and the gas-storage business currently conducted by Star Energy.
Production is 2011 is approximately 2,800 barrels of oil equivalent per day. Proved and probable reserves as of June 30 was 11.1 million barrels equivalent, and proved, probable and possible reserves are 15.6 million barrels equivalent.
The deal also includes extensive operating equipment including workover rigs and a generating plant.
IGas chief executive Andrew Austin says, “With this acquisition we will be creating a substantial onshore oil and gas company in the U.K. The enlarged group is expected to have a growing production profile as IGas Energy's combined oil and gas resources are developed. It is anticipated that this growing production profile could potentially see the combined group being financed without the need for further recourse to additional equity. The enlarged team will have the necessary capabilities to exploit its significant asset base.”
The deal is expected to close by the end of October.