Centrica Offer for Reserves

Centrica PLC
1 November 2000


Centrica builds on its North American gas reserves
                              
Centrica plc announced today that it has agreed to buy
Avalanche Energy Limited, a privately-held Canadian gas and
oil production company. The total consideration, including
the assumption of debt, is C$253.5m (£114.5m).

The acquisition, which will be made by way of an offer to
Avalanche Energy shareholders by a wholly owned subsidiary
of Centrica plc, has the unanimous support of the Avalanche
Energy board of Directors. The offer will be subject to the
approval of Avalanche Energy shareholders and regulatory
authorities.

The agreement to acquire Avalanche Energy follows Centrica's
acquisition of Direct Energy Marketing Limited in August
this year, and will provide additional reserves to support a
reliable and competitively priced gas supply to its growing
customer base in Canada.

The  key Avalanche Energy assets are the Entice, Hackett and
Bashaw  gas  fields in South Central Alberta.  These  assets
compliment Direct Energy's existing production which is from
similar, nearby gas fields. Avalanche Energy has shallow  gas
reserves  which are largely uncontracted and  land  holdings
with significant potential for future exploitation drilling.

It is expected that the offer will be posted to shareholders
within seven days and will be completed by the end of
November 2000.

Roy Gardner, Chief Executive, of Centrica said; 'This is an
important step towards our longer term goals in North
America, and will consolidate Direct Energy's ability to
serve both existing and future customers through a
combination of value, reliability and excellent service.'

Further information:

UK  Media enquiries     James Donnan      01753 758443
                        Neville Barltrop  01753 758442
    Investor enquiries  Chris Milburn     01753 758114
                        Jo Sommers        01753 758114
Canada Enquiries        Nick Fulford   [phone]
& USA                   or      [phone] ex 3516


Notes to Editors

1.   Centrica plc is a leading supplier of energy and
  services at home and on the road, trading under the AA,
  British Gas, Scottish Gas and Goldfish brands. The
  acquisition of Canada's Direct Energy Marketing Limited, for
  £406m, in August this year, marked the first step in
  delivering its international strategy.

2.   The offer to acquire Avalanche Energy will be made
  through 3742245 Canada Ltd, a wholly-owned subsidiary of
  Centrica plc

3.   Direct Energy is North America's largest unregulated
  retailer of energy.  The Company supplies gas and
  electricity to homes and businesses in Canada and has a
  27.5% interest in Energy America, a joint venture with
  Sempra.

4.   Avalanche Energy is a small independent gas producer
  set up in 1997. Approximately 90% of the assets are gas
  producing, the remainder are oil.