Genesis ups stakes in North Sea blocks

Offshore staff

LONDON --Genesis is set to acquire the 50% interest held by PGS in their joint venture company, Genesis Petroleum Europe.

The latter was created in May 2006 to explore for oil and gas, mainly in northwest Europe. It has since been awarded interests in two licenses offshore Norway and a share of one UK exploration license.

However, in April 2007 PGS and Aker Capital both became major shareholders in Genesis as a result of fund raising. Genesis' board now says it would be in the company's best interests "to simplify PGS' position in the group structure and ensure transparency of ownership."

Once the transaction is completed, Genesis will acquire an additional 50% of UK block 16/8c, containing one oil discovery, and a further 10% of Norwegian blocks 34/8, 9 and 11 (including a gas find), and a further 12.5% of Norwegian block 33/12.

Further, Genesis will secure expanded licensing rights to PGS seismic data valued at up to $30 million.

12/25/2007