Energean announced that it has received a discount for its acquisition of the Edison E&P, paying only $178 million from an initial $750 million, according to a press release.
The company will gain operations in Egypt, Italy, UK, Croatia and Malta with 226 million barrels of equivalent (mmboe) 2P reserves and 2C resources. The company’s assets produced 58,700 boe/d in 2019 which generated $264 million of EBITDAX.
Energean explained that it expects to pay an contingent payment for its first gas production from Cassiopea if natural gas price is recovered. By all of that, the company will have reserves and resources of more than of 800 mmboe, with plans to produce more than 130,000 boe/d to make it one of the largest E&P companies listed on the London Stock Exchange.
This was approved in Energean’s general meeting, which also saw the approval of the addition of UK North Sea to the company’s expanded portfolio including interests in two recent, material gas discoveries.
The company entered into a conditional sale and purchase agreement to acquire Edison E&P for $750 million on July 4, 2019. Both parties have agreed on several amendments to the deal after negotiations, including reducing the value of acquisition by $466 million to become $284 million, but after working capital, Energean expects to pay just $178 million for the acquisition.