Energean Oil and Gas plc has entered a conditional Sale and Purchase Agreement (SPA) to sell the UK and Norwegian subsidiaries of Edison Exploration and Production (E&P), the company announced on October 14.

“Neptune is a leading player in the UK and Norway upstream sectors and, as such, we are convinced that under Neptune’s ownership, Edison E&P’s UK and Norway teams will benefit from the increased focus and investment that will result from this strategic alignment,” Mathios Rigas, Chief Executive of Energean, said.

The deal is worth around $250 million of cash to be adjusted for working capital, with a contingent consideration of up to $30 million.

Additionally, completing the deal depends on finalizing the proposal of Energean to acquire Edison E&P, and is expected to be closed as soon as is reasonably practicable thereafter.

“The acquisition of Edison E&P established Energean as the leading independent, gas-focused E&P company in the Mediterranean with a mainly operated, low-cost, gas-weighted portfolio and a highly experienced team to prosper in our rapidly changing industry,” Rigas added.

“At the time of announcement, we committed to our Shareholders that we would seek to dispose of non-core assets that do not adhere to our strategy. I am delighted to be able to make this announcement today, which demonstrates our commitment and capability to deliver upon our stated goals,” he commented.

It is worth noting that the agreement comes in line with Energean’s strategy to become the largest independent gas-focused E&P company in the Mediterranean.