Centrica continues exploration drive with North Sea well

Centrica plc today announced it has reached agreement with Endeavour Corporation to acquire 20 per cent equity in a North Sea exploration licence as it looks to secure supplies for its British Gas customers from a range of different sources, including targeted exploration prospects.

Centrica will acquire a 20 per cent interest from Endeavour in the ‘Turnberry’ licence covering block 31/26b in the Central North Sea. Under the agreement, Centrica will farm-in to the licence and cover 26 per cent of the cost to drill the well, expected to be up to a maximum of £2.6 million.

Turnberry is in line with Centrica’s plans to consider a range of prospects to increase the overall probability of success from exploration.

The agreement follows Centrica’s participation in the Prometheus exploration prospect in the North Sea, announced in June. Within its future gas sourcing strategy it intends to consider a limited number of targeted future exploration opportunities, largely through partnership activities close to current producing fields, alongside equity investments, contractual agreements and traded market purchases.

Sir Roy Gardner, Chief Executive of Centrica, said: “The Turnberry prospect is firm evidence of Centrica looking at a range of opportunities to add reserves to our portfolio, building on our recent agreement to participate in the Prometheus exploration licence.

“The current high wholesale price of gas makes exploration activity an increasingly viable option. Our intention is to work alongside partners and consider prospects close to producing assets within the UK, Norwegian or Dutch sectors.”