Centrica acquires its first Norwegian gas producing interests

Centrica plc, the parent company of British Gas, today announced it has reached
agreement to acquire interests in a package of non-operated gas and oil assets
in Norway for $375 million (£190 million) in cash, including its first gas
production in the Norwegian sector. The agreement, with Marathon Oil, will see
Centrica acquire interests in the Heimdal area of the Norwegian North Sea, which
includes producing fields, discoveries and exploration prospects.

Additional capital investment of approximately £125 million will be required to
maximise the total reserves potential of 165 billion cubic feet equivalent
(bcfe) over the next four years. At the effective date of acquisition, 1 January
2008, the immediately recognisable reserves were 100 bcfe, of which 70 per cent
was gas. On closing, the final consideration will be adjusted downwards to
reflect production since the start of 2008.

Centrica will acquire a 23.8 per cent interest in the Heimdal field, a 46.9 per
cent interest in Vale and a 20 per cent interest in Skirne/Byggve, all of which
are producing fields. It will also acquire interests in the Heimdal East and
Peik discoveries which could be developed by 2012. Gas currently being produced
from the fields is contracted until 2011 at prices directly linked to the UK
market. After 2011, Centrica could deliver the gas to the UK or continental
Europe.

The agreement will further build on the company's position within the Norwegian
and UK sectors of the North Sea. Over the past two years Centrica has acquired
interests in twelve exploration licences in the Norwegian sector and holds
interests in over thirty producing, development or exploration stage assets in
the UK sector.

Sam Laidlaw, Chief Executive of Centrica, said: "This investment is in line with
our strategy to reduce the Group's exposure to movements in gas prices through
securing additional upstream assets. It also increases the level of gas reserves
to supply our British Gas customers and gives us our first producing interests
in Norway, building on our existing exploration position."

"This deal underlines our commitment to invest in energy supplies from across
the globe as the UK's existing North Sea production declines. It also provides
us with a good combination of producing fields, discoveries and exploration
prospects."

Enquiries:
Centrica Investor Relations:                      +44 (0)1753 494900
Centrica Media Relations:                         +44 (0)1753 492551

Notes:

1/ The agreement is subject to Norwegian government approvals.

Copyright Business Wire 2008