Progress Energy to acquire Talisman Montney properties

The Progress Energy Canada Ltd. subsidiary of Malaysia’s Petroliam Nasional Bhd. will acquire an interest in two Montney-related partnerships from Talisman Energy Inc.

The acquisition will include 127,000 net acres of Montney lands and 11,000 b/d of oil equivalent production as of Oct. 1. Output is expected to increase in this year’s fourth quarter.

Progress Energy said, “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 [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,” the company added.

The acquisition will include wells, pipelines, and gas processing plants in the Greater Farrell and Great Cypress areas. Progress Energy will acquire Talisman’s 50% interest in Greater Farrell, where Talisman’s partner owns the remaining 50% interest.

Under the terms of the Talisman partnership, the partner pays a disproportionate share of development costs. The value of this “capital carry” is $870 million at the Oct. 1 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.

The capital carry offsets the total Progress Energy acquisition cost of $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.

Related Articles

Market watch: Energy futures prices rose slightly Friday

05/06/2002 Crude oil futures prices rose slightly Friday amid lingering uncertainty about a possible disruption of Middle East supplies, although tensions in ...

Gulf of Mexico oil service sector showing signs of an upturn

05/06/2002 The Gulf of Mexico oil service sector is experiencing the signs of an upturn, analysts with Simmons & Co. International, UBS Warburg LLC, and RBC D...

OTC: Industry, national agencies need to work together to make FPSOs work in the gulf

05/06/2002 Over the coming years, the oil and gas industry will have to keep an open line of communication with national agencies such as the US Coast Guard a...

Market watch: Energy futures prices fall as Iraq lifts embargo

05/07/2002 Crude oil futures prices fell Monday after Iraq announced plans to lift a self-imposed export embargo with exports expected to resume by Wednesday.

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected