Acquisition

RNS Number : 6655T

SSE PLC

17 December 2012

 



ACQUISITION OF 50% EQUITY STAKE IN SEAN GAS FIELD

SSE, through its wholly-owned subsidiary SSE E&P UK Limited, has entered into an agreement with BP to acquire its 50% working interest in the Sean gas field in the Southern North Sea. SSE will pay a total cash consideration of $288 million, based on an effective date of 1 January 2012.

Total net proven and probable (2P) reserves to SSE (based on an effective date of 1 January 2012 ) are expected to be approximately 1.7 billion therms over the life of the field, with the possibility of additional resource through infill drilling. The Sean gas field is close to a number of SSE's existing upstream assets.

The transaction is expected to be completed during the first half of 2013, subject to receipt of all the necessary partner and regulatory approvals.

David Franklin, SSE's Managing Director Energy Portfolio Management, said:  "We have made clear that SSE is proactively seeking new opportunities to increase our presence in upstream gas sector where assets can be acquired for a fair price, and that is exactly what this deal represents."

 

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