The Board of IGas Energy has signed a sale and purchase agreement for the acquisition of Star Energy Group Limited from PETRONAS International Corporation Limited, and the agreement of a Gas Sales Agreement (GSA) with PETRONAS Energy Trading Limited. The Acquisition will comprise of the UK onshore production assets of Star Energy but excludes certain non-UK assets and the gas storage business currently conducted by Star Energy.

Andrew Austin, CEO of IGas Energy, commented: "This is a transformational deal for IGas Energy. With this Acquisition we will be creating a substantial onshore oil and gas company in the UK. The enlarged group is expected to have a growing production profile as IGas Energy's combined oil and gas resources are developed. It is anticipated that this growing production profile could potentially see the combined group being financed without the need for further recourse to additional equity. The enlarged team will have the necessary capabilities to exploit its significant asset base.

"In addition, the GSA with PETRONAS Energy Trading Limited offers an important partnership and a customer for our gas as it comes on stream. This agreement constitutes a significant step towards the migration of our resource base to reserves."

Tags: IGas Energy