News

July 23, 2009

EnCore Oil And Faroe Petroleum Cash Out Of Breagh

A consortium of oil and gas companies has sold its stake in the Breagh gas field in the UK to RWE Dea UK as the small cap owners cashed out of the discovery before committing to an expensive offshore development. Following the transaction, German energy firm RWE Dea will hold 70 per cent of the equity with operator Sterling Resources retaining a 30 per cent interest.

The purchase makes good sense for the German firm, which counts the North Sea as a core area and is keen to grow its upstream gas production here to support its investments in new gas-fired power generation plant in the UK.  The field lies 86 km from the Cavendish gas field, which is also operated by RWE Dea.

The sellers of Breagh are Sterling Resources, EnCore Oil, RegEnersys Ltd, Stratic Energy Corp, Faroe Petroleum and Petro Ventures Ltd. The sellers were advised on the deal by...