Talisman to Raise C$1.9B in Canadian Asset Sales
Talisman has agreed to sell a number of non-core assets in Canada with total proceeds of approximately C$1.9 billion, through five separate transactions.
"We are very pleased with the outcome of the sales process that we announced in January," said John A. Manzoni, President and Chief Executive Officer. "Although these are excellent assets with a great future, they can't effectively compete for capital within our emerging strategic asset mix. These sales are value accretive and will help us focus on, finance and build our growing, low-cost North American shale gas business."
These transactions include approximately one million net acres of land in the greater Peace River Arch, central Alberta Foothills and greater Hinton areas in Alberta, as well as the company's Ontario properties. The assets are currently producing 42,500 boe/d (approximately 90% natural gas), with net proved reserves of 120 mmboe. The sale equates to approximately $44,000/boe/d and $16/boe of proved reserves and seven times cash flow.
These transactions are expected to be finalized by the end of the second quarter of 2010, subject to normal regulatory approvals.
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