Energean Oil & Gas $750 million acquisition of Edison Exploration & Production

Overview:

• Greek oil and gas producer Energean has acquired Edison Exploration and Production from Italian energy company Edison.
• The deal is initially priced at $750 million with an additional $100 million subject to gas production in Cassiopea fields in Sicily. Edison will also receive further royalties from exploration projects in Egypt should Energean make any profits from them. The add-ons are likely to increase the acquisition cost to near $1 billion.
• The acquisition will add oil and gas fields in Algeria, Croatia, Egypt, Italy, and the UK's North Sea along with the development projects in Egypt, Italy and Norway to Energean's portfolio increasing its presence in the Mediterranean gas hub.
• Energean estimates the combined group will have reserves of 639 mmboe (million barrels of oil equivalent) and an operating cash flow of $302 million.

Rajeeb Gurung - Researcher