Talisman to sell some B.C. gas lands to Progress Energy for $1.5 billion cash

CALGARY – Talisman Energy Inc. (TSX:TLM) has reached a deal to sell its interests in two B.C. natural gas partnerships for $1.5 billion in cash.

The buyer is Progress Energy Corp., a formerly independent Canadian company that’s now a subsidiary of Malaysia’s state-owned Petronas.

Progress is becoming a major player in British Columbia’s plans to become a major gas producer and exporter.

Calgary-based Talisman has said for months that it planned to sell a large chunk of its assets in order to be more efficient and profitable.

The deal with Progress involves the sale of three-quarters of Talisman’s land holdings in the Montney shale formation, covering the equivalent of about 500 square kilometres.

Progress is buying a total of 127,000 acres (51,395 hectares) in the Farrell Creek and Cypress areas that Talisman owns through two partnerships, as well as wells, pipelines and processing plants.

Talisman will retain about 48,000 net acres (19,424 hectares) in the Montney shale formation, known as its Groundbirch and Saturn assets.