Centrica buys Canadian gas fields

British gas owner Centrica is to spend $58m (£37m) buying gas assets in Canada as it continues to grow its North American business.

The 'Carrot Creek' assets include 80 producing wells, associated infrastructure and a gas processing plant with natural gas liquid extraction capability.

Centrica called the deal "a unique opportunity to invest in a liquids-rich, multi-zone area that had significant development potential".

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The purchase will provide the firm's North American subsidiary, Direct Energy, with a net additional 25.6bn cubic feet equivalent of proven and probable reserves, an increase of approximately 4%, split 42% gas and 58% liquids.

The resulting net increase in production will be 6.2m cubic feet equivalent per day, Centrica said.

"This represents both a valuable addition to our existing reserves and offers the potential to develop significant resources," said Chris Weston, chief executive of Direct Energy.

This acquisition marks the latest stage in the growth of Direct Energy's upstream business.

Last year it bought natural gas assets in the Wildcat Hills region of Alberta, increasing its natural gas reserves by approximately 60%.