Business
Disposal of Edison E&P North Sea Assets
Disposal of Edison E&P North Sea Assets.
About this update from Energean Plc
[{"type":"text","content":"\n \nRNS Number : 6990P Energean Oil & Gas PLC 14 October 2019 \n\n \n \nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \nEnergean Oil & Gas plc\n(\"Energean\" or the \"Company\")\n \n \nDisposal of Edison E&P North Sea Assets for up to $280 million\n \n \nLondon, 14 October 2019 - Energean Oil and Gas plc (LSE: ENOG, TASE: אנאג), the oil and gas producer focused on the Mediterranean, is pleased to announce that, further to Energean's proposed acquisition of Edison Exploration and Production S.p.A. (\"Edison E&P\") as announced on 4 July 2019, it has entered into a conditional Sale and Purchase Agreement (\"SPA\") to sell Edison E&P's UK and Norwegian subsidiaries to Neptune Energy Group Holdings Limited (\"Neptune\") for $250 million of cash, to be adjusted for working capital (effective date 1 January 2019), with additional cash contingent consideration of up to $30 million1. The sale is contingent on Energean completing its proposal to acquire Edison E&P and is expected to close as soon as is reasonably practicable thereafter.\n \nThe onward sale is in line with Energean's stated strategy of becoming the largest independent gas-focused E&P Company in the Mediterranean, and its previously stated intention to dispose of non-core assets. The net proceeds further strengthen Energean's balance sheet and provide additional financial flexibility across the expanded portfolio.\n \nThe Edison E&P UK and Norway subsidiaries include the Nova (15% Working Interest) and Dvalin (10% Working Interest) gas developments offshore Norway, and in the UK, the producing Scott (10.5% Working Interest), Telford (15.7% Working Interest), Tors (68% Working Interest) and Wenlock (80% Working Interest) fields, the Markham asset (3.1% Working Interest), the Glengorm discovery (25% Working Interest) and the Isabella licence (10% Working Interest), upon which an exploration well is expected to spud in the coming weeks. Combined, the subsidiaries represent $408 million of 2018 Gross Assets and $33 million of 2018 Losses before Tax.\n \nNeptune will take on the Edison UK and Norway employees and has agreed to guarantee their terms of employment and severance pay for a period of 18 months from Completion.\n \nMathios Rigas, Chief Executive of Energean, commented:\n&n...