Energy giant Centrica plc is continuing its internationalisation programme with the agreed takeover of oil and gas assets in Canada, for C$56.7 million (£28.4 million).

Energy giant Centrica plc is continuing its internationalisation programme with the agreed takeover of oil and gas assets in Canada, for C$56.7 million (£28.4 million).

Centrica’s acquisition of TransGlobe Energy Corporation’s Canada-based oil and gas assets will be made through its North American subsidiary Direct Energy and is expected to complete by the beginning of May.

Internal assessments indicate that the deal will increase Direct Energy’s reserves by the equivalent of at least 15 billion cubic feet a day (Bcfe).

The assets, located next to Direct Energy’s existing gas portfolio in Alberta, comprise a production base with a capacity equivalent to up to 8.7 million cubic feet a day (MMcfe) – 75 per cent of which is natural gas – and 50,000 acres of land for development.

Deryk King, managing director of Centrica North America, describes TransGlobe Energy’s Canadian assets as an excellent fit with the company’s current upstream portfolio. “This acquisition reaffirms our commitment to growing the profit stream from this important part of the business.”

Centrica operates under the British Gas name in England, Nwy Prydain and British Gas in Wales, and Scottish Gas in Scotland, supplying gas and electricity to residential customers.

It was formed in February 1997 following a demerger from British Gas plc. The new company, headquartered in Berkshire, comprised the gas supply, services and retail businesses of British Gas, together with the gas production business of the North and South Morecambe gas fields.

Centrica entered the North American market in 2000 with the purchase of Direct Energy, and is currently exploring its international strategy with ventures in Belgium, Germany, the Netherlands, Nigeria, Norway, Spain and Trinidad.