The total consideration for the transaction is £5.2 million, with an effective date of January 1, 2002. The net consideration of approximately £1.2 million, paid by Tullow on completion, reflects revenues and costs accruing to the interest since the effective date. The net remaining reserves attributed to the acquired interest at the effective date are estimated at 10 bcf of sales gas. Gas associated with this interest is sold on long-term contract to British Gas Trading.
In a separate transaction, Tullow has also completed the sale to Viking Petroleum UK Limited of its remaining UK onshore interests, principally comprising a 60% equity in the North Yorkshire gas fields and operatorship of the Knapton Power Station on behalf of ScottishPower. The consideration for the transaction was $8.3 million with an effective date of October 1, 2003. Tullow's other onshore UK interest, in the West Firsby oil field in Lincolnshire, was sold earlier in 2003.
Commenting on the transactions Aidan Heavey, Chief Executive of Tullow said: "During 2003 Tullow has strengthened its position and influence throughout the Thames/Hewett Area. Completion of the Eni deal represents another important step in this process. Our exit from the onshore UK is part of an ongoing rationalization program relating to non-core areas and we are delighted that our North Yorkshire assets have been purchased by a company with exciting plans for the area."
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