Talisman Energy Announces Agreement to Sell Non-Core Saskatchewan Assets for $720 Million
05 March 2009 - 9:22AM
Marketwired
(TSX: TLM) (NYSE: TLM) Talisman Energy Canada and its affiliate,
Fortuna (US) L.P., (collectively, Talisman) have entered into an
agreement with Crescent Point Resources L.P and TOG Partnership, an
affiliate of Tristar Oil & Gas Ltd., who will purchase
Talisman's southeast Saskatchewan and Daniels County, Montana
assets for total proceeds of approximately C$720 million.
"This is in keeping with our strategic objective to focus
Talisman's portfolio on material, core assets," said John A.
Manzoni, President and Chief Executive Officer. "Although southeast
Saskatchewan has been part of our legacy, the majority of our
capital spending and effort in North America going forward will be
deployed to accelerate success in our unconventional natural gas
plays."
The sale includes approximately 610,000 net acres of land (73%
in southeast Saskatchewan, including fee title lands) with
approximately 8,500 boe/d of net production, as well as Talisman
owned and operated infrastructure. An independent, NI-51-101
compliant reserves report by AJM Petroleum Consultants dated March
2, 2009, estimated proved reserves at 20.1 mmboe and proved plus
probable reserves at 34.1 mmboe (before royalties, net to
Talisman). The sale is subject to regulatory approval, with an
expected closing date of June 1, 2009.
FirstEnergy Capital Corp. has acted as exclusive advisor to
Talisman in connection with this transaction.
Talisman Energy Inc. is an independent upstream oil and gas
company headquartered in Calgary, Alberta, Canada. Talisman has
operations in Canada and its subsidiaries operate in the UK,
Norway, Southeast Asia, North Africa and the United States.
Talisman's subsidiaries are also active in a number of other
international areas. Talisman is committed to conducting its
business in an ethically, socially and environmentally responsible
manner. The Company is a participant in the United Nations Global
Compact and included in the Dow Jones Sustainability (North
America) Index. Talisman's shares are listed on the Toronto Stock
Exchange in Canada and the New York Stock Exchange in the United
States under the symbol TLM.
Forward-Looking Information
This press release contains information that constitutes
"forward-looking information" or "forward-looking statements"
(collectively "forward-looking information") within the meaning of
applicable securities legislation. This forward-looking information
includes, among others, statements regarding: business strategy and
plans; expected sale of a subsidiary of Talisman and timing; and
other expectations, beliefs, plans, goals, objectives, assumptions,
information and statements about possible future events,
conditions, results of operations or performance.
The completion of any contemplated disposition is contingent on
various factors, including market conditions, the ability of the
Company to negotiate acceptable terms of sale and receipt of any
required approvals for such dispositions.
Undue reliance should not be placed on forward-looking
information. Forward-looking information is based on current
expectations, estimates and projections that involve a number of
risks which could cause actual results to vary and in some
instances to differ materially from those anticipated by Talisman
and described in the forward-looking information contained in this
press release. The material risk factors include, but are not
limited to uncertainties as to the availability and cost of
financing and changes in capital markets, the possibility that
government policies or laws may change or governmental approvals
may be delayed or withheld and the abilities of the parties to
complete the transactions generally.
The foregoing list of risk factors is not exhaustive. Additional
information on these and other factors which could affect the
Company's operations or financial results are included in the
Company's most recent Annual Information Form and Annual Financial
Report. In addition, information is available in the Company's
other reports on file with Canadian securities regulatory
authorities and the United States Securities and Exchange
Commission (SEC).
Forward-looking information is based on the estimates and
opinions of the Company's management at the time the information is
presented. The Company assumes no obligation to update
forward-looking information should circumstances or management's
estimates or opinions change, except as required by law.
BOE Conversion
Throughout this press release, the calculation of barrels of oil
equivalent (boe) is at a conversion rate of six thousand cubic feet
(mcf) of natural gas for one barrel of oil for, based on an energy
equivalence conversion method. Boe may be misleading, particularly
if used in isolation. An boe conversion ratio of 6 mcf:1 bbl is
based on an energy equivalence conversion method primarily
applicable at the burner tip and does not represent a value
equivalence at the wellhead.
Contacts: Talisman Energy Inc. - Media and General Inquiries
David Mann, Vice-President, Corporate & Investor Communications
(403) 237-1196 (403) 237-1210 (FAX) Email: tlm@talisman-energy.com
Website: www.talisman-energy.com Talisman Energy Inc. - Shareholder
and Investor Inquiries Christopher J. LeGallais, Vice-President,
Investor Relations (403) 237-1957 (403) 237-1210 (FAX) Email:
tlm@talisman-energy.com Website: www.talisman-energy.com
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