Re Agreement

Centrica PLC
                  

           Centrica Acquires Share of Gas Asset Development

Centrica plc today announced it has reached agreement with Tullow Oil plc to
acquire Hawkeye Exploration Limited, which owns a 50 per cent interest in the
undeveloped Horne and Wren gas fields in the Southern North Sea. The acquisition
is expected to add approximately 230 million therms to Centrica's equity gas
portfolio. Following development of the fields, first gas is scheduled for
summer 2005, with the reserves being extracted over a two year period.

Centrica will make an anticipated payment of £7.1 million, of which £4.6 million
will be paid immediately. Its share of the development cost is estimated at £24
million.

This acquisition will also benefit Centrica through tariff income received via
its interests in the Thames field (10 per cent) and the Hewett Bacton terminal
(23.15 per cent) through which gas from Horne and Wren will be transported.
Development of the fields started in June this year.

Jake Ulrich, Managing Director of Centrica Energy, said: 'This acquisition is
further evidence of our investment in upstream gas and power assets to secure
energy supplies for our British Gas customers.

'The agreement fits with our strategy of acquiring producing or development
stage assets that bring uncontracted gas to our portfolio. Centrica will also
benefit by receiving tariff income through our interests in the infrastructure
that will transport gas from Horne and Wren.'

Enquiries:

Centrica Investor Relations 01753 494900

Centrica Media Relations 01753 494085