StockMarketWire.com - Energy company Energean said it had agreed to acquire Edison E&P at a revised price of $284m, down from the original sum of $740m, after the latter's Norwegian assets were excluded from the takeover deal.

The reduction of $466m to the initial consideration included a $155m reduction relating to the exclusion of the Algerian asset from the transaction perimeter; $200m reduction relating to exclusion of the Norwegian subsidiary from the transaction perimeter; and $111m of additional reductions relating to the macro environment.

Edison's UK North Sea subsidiaries, which included interests in the large Glengorm and Isabella gas-condensate discoveries, would now be retained within the perimeter of the transaction, further supplementing the growth potential of the enlarged group, the company said.

The change in the terms of the deal reduced the capital expenditure outlook for 2020 to $760-to-$780m from $840m.

Energean said it would have working interest 2P reserves plus 2C resources of more than 800m barrels of oil equivalent (boe), and guidance for 2020 was 44,500-to-51,500 boe per day.

'Following completion, around 70% of our production will be sold under long-term gas sales agreements that insulate our future revenues against oil price volatility,' the company said.

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