Energean, an Israeli oil and gas group, acquired Italian energy firm Edison’s exploration & production (E&P) segment in July of this year for US$750mln.
Under the new agreement, Edison E&P’s subsidiaries in UK and Norway will be sold to Neptune, a London-based oil and gas company, for US$250mln in cash.
Another US$30mln will be payable following approval for development plans in two UK fields, expected in 2025 and 2026.
The deal is part of Energean’s strategy to dispose of non-core developments to focus on a gas-focused portfolio.
“Neptune is a leading player in the UK and Norway upstream sectors and, as such, we are convinced that under Neptune's ownership, Edison E&P's UK and Norway teams will benefit from the increased focus and investment that will result from this strategic alignment,” said Energean’s chief executive Mathios Rigas.
"We see this as a positive step for Energean given the assets are outside the company’s core area of operations, and the price achieved is significantly above Energean’s previously guided sale price for the North Sea assets of US$200mln," said broker Peel Hunt, reiterating the "buy" recommendation.
Shares were down 0.54% to 922p in the early morning.
--Adds broker comment--