Acquisition of Interest in Exploration Licence

Centrica PLC
                  

Centrica continues exploration drive with North Sea well

Centrica plc today announced it has reached agreement with Endeavour Corporation
to acquire 20 per cent equity in a North Sea exploration licence as it looks to
secure supplies for its British Gas customers from a range of different sources,
including targeted exploration prospects.

Centrica will acquire a 20 per cent interest from Endeavour in the 'Turnberry'
licence covering block 31/26b in the Central North Sea. Under the agreement,
Centrica will farm-in to the licence and cover 26 per cent of the cost to drill
the well, expected to be up to a maximum of £2.6 million.

Turnberry is in line with Centrica's plans to consider a range of prospects to
increase the overall probability of success from exploration.

The agreement follows Centrica's participation in the Prometheus exploration
prospect in the North Sea, announced in June. Within its future gas sourcing
strategy it intends to consider a limited number of targeted future exploration
opportunities, largely through partnership activities close to current producing
fields, alongside equity investments, contractual agreements and traded market
purchases.

Sir Roy Gardner, Chief Executive of Centrica, said: 'The Turnberry prospect is
firm evidence of Centrica looking at a range of opportunities to add reserves to
our portfolio, building on our recent agreement to participate in the Prometheus
exploration licence.

'The current high wholesale price of gas makes exploration activity an
increasingly viable option. Our intention is to work alongside partners and
consider prospects close to producing assets within the UK, Norwegian or Dutch
sectors.'

Notes to editors:
The partners in the Turnberry licence block are:

Endeavour (operator) 40%
Palace 21.875%
Centrica plc 20%
Challenger 13.125%
Reach 5%

Enquiries:

Centrica Media Relations 01753 494085
Centrica Investor Relations 01753 494900