Direct Energy Enters Agreement to Acquire Canadian Assets From TransGlobe Energy
Posted on: Wednesday, 16 April 2008, 09:01 CDT
Direct Energy, one of North America's largest energy and energy-related services providers, today announced that it has made an agreed offer to acquire the Canadian based oil and gas assets of TransGlobe Energy Corporation (TSX: TGL)(NASDAQ: TGA), for a total cash consideration of C$56.7 million. Internal assessments indicate that this acquisition will increase Direct Energy's reserves by at least 15 Bcfe.
The assets acquired are located next to Direct Energy's current gas portfolio in Alberta. In addition to a production base of 8.7 Mmcfe per day (of which 75 per cent is natural gas), the acquisition also includes 50,000 acres of land with development potential.
Deryk King, Chairman and Chief Executive Officer of Direct Energy said, "We are pleased to announce the acquisition of these high quality assets. With over 80 per cent of the assets located adjacent to our existing Alberta properties, this acquisition offers an excellent geographic, strategic and operational fit for Direct Energy. This deal, together with our recent acquisition of Rockyview Energy, reaffirms our commitment to growing the profit stream from this important part of our business."
Direct Energy owns and operates approximately 3,600 natural gas wells in Alberta, three gas-fired electrical power plants in Texas, is a leading retailer of green power in Canada and has renewable power purchase agreements totalling 813MW in Texas.
The transaction is expected to close by the beginning of May.
About Direct Energy
Direct Energy is one of North America's largest energy and energy-related services providers with over 5 million residential and commercial customer relationships. Direct Energy provides customers with choice and support in managing their energy costs through a portfolio of innovative products and services. A subsidiary of Centrica plc (LSE: CNA), one of the world's leading integrated energy companies, Direct Energy operates in 21 states plus DC and 10 provinces in Canada. To learn more about Direct Energy, visit www.directenergy.com.
About TransGlobe Energy Corporation
TransGlobe Energy Corporation is a Calgary-based, growth-oriented oil and gas exploration and development company focused on the Middle East/North Africa region with production operations in the Arab Republic of Egypt and the Republic of Yemen. TransGlobe's common shares trade on the Toronto Stock Exchange under the symbol TGL and on the NASDAQ Exchange under the symbol TGA.
Contacts: Direct Energy Aishling Cullen (416) 590-3779 Email: aishling.cullen@directenergy.com Direct Energy Lisa Frizzell (403) 290-6835 Email: lisa.frizzell@directenergy.com Website: www.directenergy.com
SOURCE: Direct Energy
Source: MARKET WIRE
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