Edison grows in UK
Edison to acquire Scott & Telford fields in North sea and increases its activities in UK. Edison adds 3,500 barrel of oil equivalent per day to its current production of 50,000.
Milan, 13 January 2015 – Edison announces the execution of a put&call option agreement with Apache Beryl I Ltd (a subsidiary of Apache Corporation) to acquire its assets in license P185 Block 15/22 in the UK Central North Sea, which include non-operated equity stakes in the Scott (10.5% unitised Working Interest “WI”), and Telford (15.7% unitised WI) fields. This transaction is subject to customary closing conditions and, when completed, will increase Edison’s reserves by 8.7 Million barrel of oil equivalent (85% oil and 15% gas).
In 2014 the equity production of Scott and Telford fields has been 1.276 million barrels of oil equivalent and it is expected to remain stable in the next 3-4 years - ensuring an average of 3,500 barrel of oil equivalent per day to Edison. Thanks to the operation Edison expects to reach an overall UK production of 6,500 barrel of oil equivalent per day, increasing Edison daily total production to 53,500 barrels of oil equivalent.
Scott and Telford fields are operated by Nexen, one of the most reputable and experienced operators in the region.
“The transaction strengthens Edison’s presence in the United Kingdom Continental Shelf and, together with already existing activities in the country, creates significant operational synergies and provides several additional strategic rationales.” - comments Nicola Monti, Executive Vice President for Edison Upstream – “The acquisition in Scott and Telford fields, combined with the recent awards in the 28th Seaward licensing round, demonstrates Edison determination in strengthening its UK portfolio and represents a further growth platform for the Company”.
Edison successfully participated to the 28th Seaward Licensing Round and, on November the 6th 2014, has been awarded 4 licenses in the UK Central North Sea and 1 license in the UK Northern North Sea. One further license, in the West of Shetland and one in the Central North Sea are still pending approval.
Edison currently holds interests in 4 production fields in the Southern Gas Basin (Markham, Killmar, Garrow e Wenlock) in addition to the participation in 3 exploration licenses in the Central North Sea and West Shetland Islands.
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Edison, second largest gas company in Italy, is active in production and sale of electric power and hydrocarbons with an increasing interest abroad, especially in the E&P sector through 58 concessions and permits in Italy and 37 outside the country: Egypt, Norway, Croatia, Algeria, UK and Israel.In the E&P business the company can count on hydrocarbons reserves for a total amount of 369 million cubic meters equivalent, including reserves in the Egyptian concession of Abu Qir, of which Edison holds all the rights since 2009. Edison gas supply is 15.8 billion cubic meters and covers about a fifth of Italian needs.
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Public disclosure required by Consob Resolution No. 11971 of May 14, 1999, as amended.
Edison’s External Relations Department:
T 02 6222 7331 E ufficiostampa@edison.it
Edison’s Investor Relations:
T 02 6222 8415; E investor.relations@edison.it