Progress completes acquisition of Montney acreage

Progress Energy Canada Ltd., a wholly owned subsidiary of Malaysian national oil and gas company Petronas, has acquired acreage in northeast British Columbia’s Montney basin from Talisman Energy Inc. for $1.5 billion (Can.).

In an existing agreement with Talisman, partner Sasol would have been able match the Progress bid within 30 days of the notice from Talisman, but Sasol opted not to exercise its right of first refusal.

Progress and Sasol now will work as partners in the development of shale gas in the Montney.

The deal, first reported in November, includes 127,000 net acres of Montney lands in two Montney-related partnerships from Talisman, producing 11,000 b/d of oil equivalent as of Oct. 1 (OGJ Online, Nov. 11, 2013).