RWE-DEA Acquires British Minnow
The RWE Group is consistently strengthening its core activity of Gas. RWE-DEA AG signed an agreement with the shareholders of Highland Energy Holdings Ltd. on the acquisition of all shares of the British gas producer. The acquisition is still subject to approval by the British Secretary of State for Trade and Industry. The parties agreed to keep the purchase price confidential.
Dr. Dietmar Kuhnt, Chief Executive Officer of RWE AG says: "After our success in bidding for Czech Transgas and achieving the related key position in gas transit operations, the acquisition of Highland Energy will considerably strengthen our upstream activities. The transaction is another important step toward consolidating our position as the new Number Four in the growing European gas market through the broadening of our reserve base. The reserves are strategically located close to the European key markets."
The acquisition provides an important base for RWE-DEA in developing a viable upstream position in the British North Sea with good prospects for the future and will add 13 billion cu.m. to its available 34 billion cu.m. of gas reserves. The newly acquired fields hold additional reserve potential. RWE-DEA will have access to existing marketing links to Great Britain and continental Europe. Long-term supply agreements with customers in Great Britain and the Netherlands are in place for the current production volume.
Highland Energy is an upstream operator with a strong focus on gas. It produces gas from four fields with recoverable reserves of about 2 billion cubic meters (Highland share) in the southern part of the British North Sea. Highland Energy additionally has participations of between 35.8% and 100% in eight gas fields located in four production regions with total gas reserves of 11.3 billion cu.m. that are ready for development.