Independent gas producer Consort purchased by Caledonia Oil & Gas
Consort Resources, the UK independent gas producer established three years ago by former energy minister Colin Moynihan and veteran negotiator Jonathan Legg, has been sold to Caledonia Oil & Gas for a sum around £200 million. Caledonia is a start-up company headed by Jeff MacDonald, who previously set up and ran Highland Energy. Highland was sold to Germany’s RWE last year.
The deal, which is subject to DTI approval, is expected to be finalised in September, after which Consort will be known as Caledonia. The former Highland team running Caledonia is more geared to exploration than was Consort. Lord Moynihan may remain associated with Caledonia.
Consort began life in 2000 by acquiring 49% of the Caister field and 24.5% of the CMS pipeline system from Total. It subsequently purchased a wide portfolio of Southern Basin producing and transport assets, including Johnston, Ravenspurn North, Welland, Schooner and Anglia. It also amassed promising acreage in the Orca/Beta sector on the Anglo-Dutch median line and off Easington. It currently produces around 75 mmscf/d, but this is slated to more than double over the next three years.
Consort’s principal backers, US-based venture capitalists, had resisted the company’s preference for an IPO in favour of a trade sale. Other companies in the running included Centrica, GdF Britain and Perrenco. PH
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