Deal will see Progress take over 127,000 acres of B.C. land; Talisman will retain 48,000 net acres
CALGARY—Talisman Energy Inc. has continued to lean out its operations, announcing the closing of the $1.5-billion sale of its natural gas assets in northeastern British Columbia to Progress Energy Canada Ltd.
First announced in November 2013, the sale sees Progress takes ownership of approximately 127,000 acres of land in B.C.’s Montney formation.
Talisman will keep about 48,000 net acres in the area near the Alberta border.
The land sold to Progress has produces approximately 12,500 barrels of oil equivalent per day.
The sale comes as Talisman looks to streamline its operations and cut back its roster of “capital intensive assets.”
“Coupled with other previously announced deals, we have achieved over $2-billion in dispositions within 12 months,” Talisman president and CEO Hal Kvisle said in a statement.
“During the next 18 months, we will continue to focus our portfolio and aim to divest a further $2-billion of long dated, capital intensive assets. We will use proceeds from dispositions to maintain a strong balance sheet.”