SSE PLC
ACQUISITION OF 50% EQUITY STAKE IN SEAN GAS FIELD
SSE, through its wholly-owned subsidiary SSE E&P UK Limited, has completed the acquisition from BP of a 50% working interest in the Sean gas field in the Southern North Sea. SSE has paid a total cash consideration of £117.4 million, which reflects the value of the asset based on an effective economic date of 1 January 2012 (£180 million), less the value of the gas produced between 1 January 2012 and the completion date of the transaction today.
From today, total net proven and probable (2P) reserves to SSE are expected to be approximately 1.1 billion therms over the life of the field, with the possibility of additional resource through infill drilling. The Sean gas field is close to a number of SSE's existing upstream assets.
SSE E&P's total portfolio of assets now represents approximately 3 billion therms of proven and probable (2P) reserves. The volume and production profile of these assets represents a secure and fixed-price supply of gas that meets around 25% of the forecast demand from SSE's domestic gas customers over the next three years.
Martin Pibworth, SSE's Managing Director Energy Portfolio Management, said: "We have made clear that SSE is proactively seeking new opportunities to increase our presence in the upstream gas sector where assets can be acquired for a fair price, and that is exactly what this deal represents.
"SSE has not set a target scale for its Gas Production business, but will continue to grow it in line with SSE's core financial principles and the primary reason for it owning gas assets - securing a long term supply of physical gas that enables it to effectively meet the energy demand of its customers."
