Canadian oil producer Talisman Energy has sold off a 75% share in its British Columbia shale interests to Progress Energy Canada.
The £890million all cash deal covers 75%, or around 127,000 acres, of the company’s Montney shale interests in the Farrell Creek and Cypress areas of British Columbia.
The deal also includes production, as of 1 October 2013, of around 11,000 barrels of oil equivalent per day, which is expected to rise in the fourth quarter of 2013.
Natural gas producer Progress Energy is a subsidiary of Malaysian national oil and gas company Petronas.
Chief executive Michael Culbert said: “The location, resource and operational synergies of these assets makes this an ideal fit that expands our British Columbia resource base and increases our land position to 1.2 million acres.”
The deal, which is subject to the approval of Industry Canada, brings Talisman closer to achieving its £1.25-£1.87 billion asset disposition target, set out in March this year.
Talisman Energy chief executive Hal Kvisle said: “During the five years we have held our Montney position, our employees have worked hard to develop and operate our properties, as well as establish strong working relationships with local government and communities.
“As we progress the Montney sales process, we will continue in a safe and environmentally responsible manner, and our employees will be treated fairly and with respect.”
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