Norway's North Energy has agreed to sell its interest in the Fogelberg gas discovery (license 433) for $12.2 million (NOK 70 million) to Centrica Resources (Norway).

Production license 433 contains the Fogelberg gas/condensate discovery proven in 2010. North Energy holds 12 percent of the license. In 2011 the license partnership decided to concretize possible development solutions, which are expected to lead to a plan for development and operation within a few years.

"We are very pleased to have been involved in making a commercial discovery, and will use the added value that is realized through this sale to create further value for our shareholders though our exploration activities on the Norwegian continental shelf. The sale demonstrates that our business model works," said Providence's CEO Erik Karlstrøm.

The effective date for the transaction is January 1, 2012. The sale amount will be settled in cash at the time of completion, which is subject to approval by Norwegian authorities, is expected to take place in the second quarter of 2012.

Tags: North Energy AS