Norway: Centrica Increases Fogelberg Stake

Centrica Resources has increased its interest in Norwegian gas and condensate discovery Fogelberg following the sale of North Energy's interest in the prospect for NOK70 million (approx. €9.16 million).

As part of the agreement, Centrica will take North's 12 per cent interest in Licence 433 which includes the Fogelberg discovery in the north of Norway.

CEO of North Energy Erik Karlstrøm said the company would take what it had learned from the discovery and will use that knowledge in future activities.

"We are very pleased to have been involved in making a commercial discovery, and will use the added value that realized through this sale to create further value for our shareholders though our exploration activities on the Norwegian continental shelf," he said. "The sale demonstrates that our business model works."

The Fogelberg discovery was made in 2010 and has proven gas and condensate reserves. North Energy said today that the shareholders expect to begin a plan and development on the discovery in the coming years.

"In 2011 the licence partnership decided to concretize possible development solutions, which are expected to lead to a plan for development and operation within a few years," a statement for North said.

The transaction date for the sale is the 1st of January 2012, with completion of the deal expected in the second quarter of this year. 

Centrica is the operator for the Fogelberg discovery and currently holds a 28 per cent share. Petro-Canada holds a 30 per cent stake each in the project; E.ON Ruhrgas and Faroe Petroleum hold a 15 per cent stake each.