CALGARY, March 12, 2014 /CNW/ - Progress Energy Canada Ltd. (Progress
Energy), a subsidiary of Petroliam Nasional Berhad (PETRONAS), has
closed its previously announced agreement to acquire assets in
northeast British Columbia from Talisman Energy Inc. (Talisman). In a
second transaction, Progress Energy has also acquired Montney lands in
the Julienne area of northeast British Columbia.
"These two acquisitions continue to build upon our natural gas resource
base in the North Montney. With the complementary fit we have captured
operational synergies as well as additional strategic assets," said
Michael Culbert, President & CEO of Progress Energy.
The acquisition from Talisman includes about 127,000 net acres of
Montney lands and has current production of approximately 12,500
barrels of oil equivalent per day (BOE/d). Progress Energy will acquire
Talisman's interest in the Kobes area where Progress Energy has
existing joint operations with Talisman. In addition, Progress Energy
will be acquiring Talisman's 50 percent interest in the Farrell and
Cypress areas, where Talisman's partner owns the remaining 50 percent
interest. Under the terms of the Talisman agreement, the partner pays a
disproportionate share of development costs. The value of this "capital
carry" was approximately $870 million at the October 1, 2013 effective
date, and will be used to fund the majority of Progress Energy's share
of upstream capital investments in the joint venture area over the
coming years. This capital carry offsets the total Progress Energy
acquisition cost of approximately $1.5 billion.
In January, Progress Energy closed an acquisition in the Julienne area
for approximately $130 million which includes 4 Montney wells that are
awaiting completion and about 33,500 net acres of undeveloped Montney
lands in the heart of the company's North Montney Joint Venture British
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 400 million cubic feet equivalent of natural gas
per day in northeast British Columbia and northwest Alberta, Progress
Energy 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 Energy is wholly owned by
PETRONAS of Malaysia, a global leader in LNG and the principal owner of
Vancouver-based Pacific NorthWest LNG Ltd. Progress Energy 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.