Acquisition

Centrica PLC
                  

Centrica enters into agreement to acquire Canadian assets from TransGlobe Energy

Centrica plc today announced that its North American subsidiary, Direct Energy,
has made an agreed offer to acquire the Canadian based oil and gas assets of
TransGlobe Energy Corporation (TSX:TGL, NASDAQ:TGA), for a total cash
consideration of C$56.7 million (£28.4 million). Internal assessments indicate
that this acquisition will increase Direct Energy's reserves by at least 15
Bcfe.

The assets acquired are located next to Direct Energy's current gas portfolio in
Alberta. In addition to a production base of 8.7 Mmcfe per day (of which 75 per
cent is natural gas), the acquisition also includes 50,000 acres of land with
development potential.

Deryk King, Managing Director, Centrica North America said: 'TransGlobe Energy's
Canadian assets are an excellent fit with Direct Energy's current upstream
portfolio. This acquisition reaffirms our commitment to growing the profit
stream from this important part of the business.'

The transaction is expected to close by the beginning of May and is not subject
to shareholder approval.

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Enquiries:

Centrica Investor Relations: 01753 494900
Centrica Media Relations: 0845 072 8001
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