Talisman Energy Sells Canadian Non-Core Assets for $379 Million
Talisman Energy Canada, a wholly owned subsidiary of Talisman Energy Inc. has entered into a number of agreements for the sale of non-strategic assets in Canada. These sales are expected to generate proceeds of C$379 million, made up of $371 million in cash, plus $8 million in land and other strategic assets. The assets being sold are producing approximately 7,000 boe/d, with proved reserves of 16 mmboe as at December 31, 2005. Thirteen transactions have been completed and it is expected that all 18 agreements will close by July 19, 2006. All sales are subject to customary closing adjustments and conditions, including regulatory and third party consents. Tristone Capital Inc. acted as exclusive financial advisors to Talisman on the sales process.
"After the acquisition of Paladin Resources we announced
that we would rationalize our North American and UK portfolios.
These assets are not strategic to Talisman and we realized
excellent value in the marketplace," said Dr. Jim Buckee,
President and Chief Executive Officer. "In total, we expect
to generate about C$830 million from the combined UK and
North American asset sales. The proceeds from these asset
sales will more than repay the remaining balance on the
Paladin acquisition bridge facility."
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