Talisman Sells Non-Core North American Assets for $815 Million
Talisman Energy has entered into agreements to sell approximately 16,000 boe/d of non-core North American assets with proceeds of $815 million(1).
The intention to sell these assets was announced in October 2006 as part of a program to focus on core growth properties and extract value from non-strategic assets. Of the 16,000 boe/d sold (net Talisman share) approximately 65% is natural gas and 1,300 bbls/d is conventional heavy oil. These are predominantly low working interest, non-operated assets, which include over 2,000 wellbores. Proved reserves associated with the assets were estimated by third party engineers at approximately 38 mmboe.
The assets were sold through seven major transactions and a number of minor ones, with the last agreement expected to close in August. Talisman was also able to retain approximately $170 million in tax pools connected with the properties.
"I am pleased with the results of our asset disposition program," said Dr. Jim Buckee, President and Chief Executive Officer. "Once we close the Brae package in the North Sea late this year, we will have sold non-core assets with production totaling approximately 55,000 boe/d. As a result, I believe we are a leaner, more focused company and the emphasis in 2008 and 2009 will shift back to growth. As promised, we have used most of the proceeds to repurchase Talisman shares. In the 18 month period ending June 30, we repurchased approximately 80 million shares at a cost of $1.6 billion while proceeds from asset sales, net of taxes and adjustments, have totaled $1.8 billion. In addition, money is coming in from the North American deals and final proceeds from Brae will be received when the transaction closes."
Talisman Energy Inc. is an independent upstream oil and gas company headquartered in Calgary, Alberta, Canada. Talisman has operations in Canada and its subsidiaries operate in the North Sea, Southeast Asia, Australia, North Africa, the United States and Trinidad and Tobago. Talisman's subsidiaries are also active in a number of other international areas. Talisman is committed to conducting its business in an ethically, socially and environmentally responsible manner. The Company is a participant in the United Nations Global Compact and included in the Dow Jones Sustainability (North America) Index, as well as the Jantzi Social Index. Talisman's shares are listed on the Toronto Stock Exchange in Canada and the New York Stock Exchange in the United States under the symbol TLM.
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