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
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
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%.
-
Watch out for fake Steven Bartlett video – you could lose thousandsScammers are trying to tap into the Trump tariffs chaos, but knowing what to look out for could save you thousands of pounds, says Kalpana Fitzpatrick
-
Can Donald Trump fire Jay Powell – and what do his threats mean for investors?Donald Trump has been vocal in his criticism of Jerome "Jay" Powell, chairman of the Federal Reserve. What do his threats to fire him mean for markets and investors?
