Consort Resources buys North Sea interests

Consort Resources Ltd. has agreed to buy interests in several fields in the North Sea from TXU Corp.'s European arm for �138 million ($201 million). The interests include 64.2% in and operatorship of Johnston gas field, 14.75% of Ravenspurn North gas field, 11.24% of Welland field, 4.83% of Schooner field, and 30% of the Eagles/ETS pipeline system.


Consort Resources Ltd. has agreed to buy interests in several North Sea fields from TXU Corp.'s European arm for �138 million ($201 million).

The interests include 64.2% in and operatorship of Johnston gas field, 14.75% of Ravenspurn North gas field, 11.24% of Welland field, 4.83% of Schooner field, and 30% of the Eagles/ETS pipeline system.

Consort Energy Trading Ltd. will replace a TXU affiliate as buyer of Johnson field gas. The acquisitions triple Consort's assets base.

TXU Europe originally bought the North Sea assets to develop of its energy business in the UK. TXU said it is selling the interests at a profit.

Martin Stanley, president of TXU Europe Energy Trading, said, "Given current market conditions, now is clearly the right time for TXU Europe to sell these assets and to assign the long-term gas supply agreement to a company well set to realize the full potential of these assets, including the development and exploration licenses that were not used by TXU. The sale will allow us to concentrate more on our core businesses and to reduce debt, which naturally strengthens the balance sheet."

Jonathan Legg, Consort's Group Managing Director, said, "The Johnston part of the deal gives Consort both its first upstream UK production operatorship and its first footing in the UK downstream gas market and, thus, marks a significant step towards Consort's ultimate objective of becoming a fully integrated company in the UK gas chain."

Lehman Brothers advised TXU Europe on the transaction.

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