CALGARY, Nov. 8, 2013 /CNW/ - Progress Energy Canada Ltd. (Progress
Energy), a subsidiary of Petroliam Nasional Berhad (PETRONAS), has
reached an agreement to acquire an interest in two partnerships from
Talisman Energy Inc. (Talisman). The acquisition includes about 127,000
net acres of Montney lands and production, as of October 1, 2013, of
approximately 11,000 barrels of oil equivalent per day, which is
expected to increase in the fourth quarter of 2013.
"These natural gas interests are an attractive complement to our
existing North Montney asset base in northeastern British Columbia and
are among the largest remaining North Montney lands not dedicated to a
potential liquefied natural gas (LNG) project. The location, resource
potential and operational synergies of these assets make this an ideal
fit that expands our British Columbia resource base and increases our
land position to 1.2 million acres," said Michael Culbert, President &
CEO of Progress Energy.
The acquisition includes wells, pipelines and processing plants in the
Greater Farrell and Great Cypress areas. Progress Energy will be
acquiring Talisman's 50 percent interest in Greater Farrell, where
Talisman's partner owns the remaining 50 percent interest. Under the
terms of the Talisman partnership, the partner pays a disproportionate
share of development costs. The value of this "capital carry" is
approximately $870 million at the October 1, 2013 effective date, and
will be used to fund a portion of Progress Energy's share of capital
investments in Greater Farrell area over the coming years. This capital
carry offsets the total Progress Energy acquisition cost of
approximately $1.5 billion. In addition, Progress Energy will acquire
Talisman's partnership interest in the Greater Cypress area where
Progress Energy has joint operations with Talisman. The acquisition is
subject to customary closing conditions and adjustments, including the
approval of Industry Canada.
About Progress Energy
Progress Energy, a leader in Canadian natural gas development, is
building upon its history of performance excellence in North America to
pioneer new infrastructure for delivering LNG to Pacific Rim markets.
Producing more than 350 million cubic feet equivalent of natural gas
per day in northeast British Columbia and northwest Alberta, Progress
is serving Canadian markets and ambitiously expanding productive
capacity on its large Montney land holdings in preparation for the
opening of new LNG markets in Asia. Progress is wholly owned by
PETRONAS of Malaysia, a global leader in LNG and the principal owner of
Vancouver-based Pacific NorthWest LNG Ltd. Progress and Pacific
NorthWest LNG are helping craft a bright new future for Canada's energy
SOURCE: Progress Energy Canada Ltd.
For further information:
President & CEO
Progress Energy Canada Ltd.
Vice President Corporate Relations & Land
Progress Energy Canada Ltd.