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Energean inks deal to sell Edison UK, Norwegian upstream units to Neptune Energy

Energean Oil & Gas PLC will sell the U.K. and Norwegian subsidiaries of Edison Exploration & Production SpA to Neptune Energy Group Holdings Ltd. for $250 million, as Energean positions itself to become the largest independent gas exploration and production company in the Mediterranean.

The sale and purchase agreement is dependent on Energean's previously announced $750 million acquisition of the Edison SpA unit, according to an Oct. 14 news release from Energean.

The transaction has an additional cash consideration of up to $30 million that is contingent upon the 2P reserves of the Glengorm field exceeding 16 million barrels of oil equivalent.

In a separate Oct. 14 news release, Neptune Energy said the deal is expected to close in early 2020.

Edison's Norwegian subsidiary holds a 15% stake in the Nova gas project and a 10% interest in the Dvalin gas project. Neptune Energy said the Norwegian assets will boost its production by 12,000 boe per day in the next two years.

Edison's U.K. subsidiary also owns a 10.5% stake in Scott, a 15.7% interest in Telford, a 68% stake in Tors, an 80% interest in Wenlock, a 3.1% stake in Markham asset, a 25% interest in the Glengorm discovery and a 10% interest in the Isabella license.

The subsidiaries had gross assets amounting to $408 million last year and recorded $33 million in losses before tax in 2018.

BNP Paribas served as financial adviser to Neptune Energy for the transaction.