RWE Dea Takes Bigger Bite of Breagh in UK North Sea

With a 70% stake RWE Dea will take over the majority of the Breagh gas field and its operatorship. Sterling Resources Ltd. will keep a 30% share in the asset. The estimated resources probably make Breagh and the surrounding fields one of the largest undeveloped natural gas discoveries in the British southern North Sea.

"This development project is an ideal supplement to RWE Dea's portfolio in the United Kingdom and our core region North Sea," said Thomas Rappuhn, Chief Operating Officer of RWE Dea AG. "Production of this field will contribute significantly to our overall aim to double RWE Dea's natural gas and oil production within the next few years." Completion of the acquisition and the handover of the operatorship are subject to the approval of the Secretary of State for Energy and Climate Change of the United Kingdom.

"Breagh fits very well into RWE Dea's technical expertise in gas fields," added René Pawel, Managing Director of RWE Dea UK. The field development is to be implemented speedily. The estimated net resources are substantial and will significantly contribute to the increase of RWE Dea's gas resources. Further upside potential is expected in the surrounding exploration blocks.

Beside the overall strategy of RWE to grow the upstream position of natural gas, the acquisition supports the committed investment in new, high efficiency gas fired power generation in the United Kingdom. It is envisaged to market the natural gas produced at Breagh via RWE Supply and Trading.

The Breagh gas field is located in block 42/13a and 42/12a of the southern North Sea, 65 kilometres from the Northeast coast of England and 86 kilometres from Cavendish gas field, which is also operated by RWE Dea. The sellers of Breagh gas field are a consortium of Sterling Resources (UK) Ltd., EnCore (SNS) Ltd., EnCore Petroleum Ltd., RegEnersys Ltd., Stratic Energy Corp., Faroe Petroleum (UK) Ltd. and Petro Ventures Ltd.