Centrica enters into agreement to acquire Canadian assets from TransGlobe Energy

Centrica plc today announced that its North American subsidiary, Direct Energy, has made an agreed offer to acquire the Canadian based oil and gas assets of TransGlobe Energy Corporation (TSX:TGL, NASDAQ:TGA), for a total cash consideration of C$56.7 million (£28.4 million). Internal assessments indicate that this acquisition will increase Direct Energy's reserves by at least 15 Bcfe.

The assets acquired are located next to Direct Energy's current gas portfolio in Alberta. In addition to a production base of 8.7 Mmcfe per day (of which 75 per cent is natural gas), the acquisition also includes 50,000 acres of land with development potential.

Deryk King, Managing Director, Centrica North America said: "TransGlobe Energy's Canadian assets are an excellent fit with Direct Energy's current upstream portfolio. This acquisition reaffirms our commitment to growing the profit stream from this important part of the business."

The transaction is expected to close by the beginning of May and is not subject to shareholder approval.