Monday 14th July 2008
Star does double Dutch
Oil and gas specialist Star Energy Group Plc has increased its interests in the Netherlands with the acquisition of two gas storage projects.
The group, which is part of Petronas International, has bought Gas Storage and Overseas Gas Storage in the Waalwijk licence area from Northern Petroleum Plc for £10 million.
On completion, Star paid £7 million for the assets with further payments of £2 million and £1 million written into the acquisition agreement.
Northern, which is an oil and gas production, development, exploration and asset trading company, retains oil and gas interests in the Waalwijk area following the disposal.
Northern managing director Derek Musgrove said the board sold the assets as they were non-core to the group’s operations. “They would not have generated positive cash flow for five years at the very least and would have required considerable investment at some point.
“The proceeds from the sale will be deployed in other projects, which we believe have the potential to generate more substantial gains for shareholders in the short and medium term,” he added.
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