Gulf Oil and Gas accountACCOUNT

IGas to Acquire Nexen Exploration U.K. Limited

Source: www.gulfoilandgas.com 1/31/2011, Location: Europe

The Board of IGas, a domestic gas producer and leading developer of unconventional gas resources in the UK, is delighted to announce the signing of an agreement with Nexen Petroleum U.K. Limited, a wholly owned subsidiary of Nexen Inc (Nexen), to acquire Nexen Exploration U.K. Limited, and as a result, IGas Group will become the operator and sole owner of each of its licences (subject to approval of change of control by DECC).

IGas' Contingent Recoverable Resource 2C (P50) will increase by 115% to 1,736bcf or 290 million barrels of oil equivalent and its current production will almost triple.

In exchange Nexen will receive 39,714,290 IGas shares equivalent to 29.9% of the enlarged issued share capital. These shares will be subject to a lock up agreement for nine months.

The Agreement will also give IGas on-going access to Nexen's unconventional gas technology, including the secondment of key personnel. Nexen will have the right to be represented on the board of IGas by one director.

Andrew Austin, CEO, of IGas said: "This accretive acquisition marks a major turning point in our history. IGas is more than doubling its Contingent Recoverable Resources, with a consequential effect on future production. As a result of this deal we will have enough recoverable gas to supply electricity to 15% of UK homes for 15 years.

Additionally, as operator of all our acreage, we will be able to accelerate our production plans and increase our ability to deliver gas. This landmark deal brings significant value not only to IGas' existing shareholders but also to Nexen, as its onshore UK gas interests will be held in a company dedicated to delivering secure gas onshore.

Nexen has been a great partner in the appraisal and pilot production phases of the development of our assets and we look forward to having them as shareholders as we move to full field development. We remain funded for our existing plans including the delivery of our first commercial production site in 2011."

The closing of the transaction is subject to DECC approval of a change of control of Nexen Exploration UK Limited, and the approval of the shareholders of IGas. A letter describing the transaction and the timing of the required General Meeting will be posted to IGas shareholders shortly.

Mergers and Acquisitions News in United Kingdom >>

France >>  12/30/2019 - CGG is completing its exit from the seabed data acquisition business and has terminated the Seabed Geosolutions’ joint venture agreement effective Dec...
Norway >>  12/30/2019 - Fugro has entered into an agreement to acquire CGG’s 40% shareholding in Seabed Geosolutions and to terminate the Seabed Geosolutions’ joint venture a...

United States >>  12/20/2019 - Callon Petroleum Company (CPE) ("Callon") announced that it has completed its acquisition of Carrizo Oil & Gas, Inc. ("Carrizo"). ...
United States >>  1/29/2019 - AIM-listed Nostra Terra, the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, has announced the opening...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


United Kingdom Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 |

More News

Related Links

00 AL AT BE BG CH CY CZ DE DK ES FI FR GR HR HU IE IT NL NO PL PT RO SE SI TR UK
Gulf Oil and Gas
Copyright © 2019 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.