Centrica completes acquisition of Avalanche Energy

Centrica plc has today announced that its acquisition of Avalanche Energy Limited, a privately held Canadian gas and oil production company for a total consideration of C$253.5m (£114.5m) including debt, has been completed.

The transaction, announced on 1 November, follows acceptance of the overwhelming majority of Avalanche shareholders and receipt of the necessary regulatory consents.

The purchase follows Centrica's acquisition of Direct Energy Marketing Limited in August this year, and will provide additional reserves to support a reliable and competitively priced gas supply to its growing customer base in Canada.

The key Avalanche Energy assets are the Entice, Hackett and Bashaw gas fields in South Central Alberta. These assets complement Direct Energy's existing production, which is from similar, nearby gasfields. Avalanche Energy has shallow gas reserves, which are largely uncontracted and land holdings with significant potential for future exploitation drilling.

Centrica's Chief Executive Roy Gardner, said: "I am pleased to complete this acquisition, enabling us to take another important step towards our longer term goals in North America. This consolidates Direct Energy's ability to serve both existing and future customers through a combination of value, reliability and excellent service."