Talisman Energy Inc (TSX:TLM) (NYSE:TLM) and Mitsubishi Corporation
(MC) have reached agreement on MC's entry into nine of Talisman's
licences in Papua New Guinea's onshore Western Province, via a
farmout from Talisman effective January 1, 2012, subject to
approvals by government and joint venture partners. The deal is
valued at approximately US$280 million and will be paid in the form
of a capital carry. Following the farmout, Talisman and MC licensed
equity positions will average 40% and 20%, respectively, in these
nine licences.
Talisman and MC have agreed to work together closely to
aggregate natural gas in the Western Province of PNG with a view to
potential LNG export of approximately 3 million metric tonnes per
annum. "Talisman is delighted to have MC as a strategic partner in
our onshore licences in PNG," said Paul Blakeley, Executive
Vice-President, International Operations East. "MC brings extensive
experience in LNG development and marketing and I am confident they
will be a key success factor in helping us unlock the value of our
Papua New Guinea assets."
Talisman has been working in PNG since 2001. The company entered
the onshore licences of the Papuan Foreland in 2009 and now has a
portfolio comprising interests in nine petroleum prospecting
licences (PPLs) and five petroleum retention licences (PRLs),
covering 13.7 million acres. Talisman has participated in the
acquisition of over 1,550 kilometres of 2D seismic and the drilling
of eight wells in the PNG Foreland Basin to date. As one of the
most active explorers in PNG over the past two years, Talisman has
participated in a new gas discovery at Ubuntu in PRL 28 and the
successful appraisal of the Stanley and Elevala gas discoveries in
PRL 4 and PRL 21, respectively. Talisman intends to commence a
four-well drilling program on PPLs 235 and 261 during 2012, as well
as ongoing appraisal in PRL 21.
MC has held interests in LNG operations since 1969 and currently
participates in nine major LNG projects. Most recently, MC has
commenced construction of the Donggi-Senoro LNG project in
Indonesia in its capacity as project lead in planning and
operation. MC also has an extensive downstream marketing and LNG
tanker business. Seeing PNG as a vast and under-explored country
with huge LNG supply potential within the Asia Pacific region, MC
aims to maximize its contribution by leveraging its experience, not
only to promote economic growth for PNG, but also potentially
linking this with securing a stable energy supply for Japan. MC
will participate in five PPLs and four PRLs, including discovered
resources in PRLs 4, 8, 21, 28 and PPL 235.
Talisman and MC have an aligned vision for the aggregation and
monetization of gas and condensate liquids in the Western Province
and intend to leverage their respective skills in upstream
exploration, production and LNG project development to deliver
development success for the benefit of all stakeholders, including
the people and government of PNG and the Western Province.
Talisman Energy Inc. is a global, diversified, upstream oil and
gas company, headquartered in Canada. Talisman's three main
operating areas are North America, the North Sea and Southeast
Asia. The company also has a portfolio of international exploration
opportunities. Talisman is committed to conducting business safely,
in a socially and environmentally responsible manner, and is
included in the Dow Jones Sustainability (North America) Index.
Talisman is listed on the Toronto and New York stock exchanges
under the symbol TLM. Please visit our website at
www.talisman-energy.com.
Mitsubishi Corporation (MC) is a global integrated business
enterprise that develops and operates businesses across virtually
every industry including industrial finance, energy, metals,
machinery, chemicals, foods, and environmental business. MC's
current activities are expanding far beyond its traditional trading
operations as its diverse business ranges from natural resources
development to investment in retail business, infrastructure,
financial products and manufacturing of industrial goods. With over
200 bases of operations in approximately 80 countries worldwide and
a network of over 500 group companies, MC employs a multinational
workforce of nearly 60,000 people. Please visit our website at
www.mitsubishicorp.com/jp/en/.
To view the "Talisman and MC Licences" map associated with this
release, please see the following link:
http://media3.marketwire.com/docs/222tlm_map.pdf
Advisories
This news 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,
priorities and plans in PNG and with respect to the strategic joint
venture with Mitsubishi; potential natural gas aggregation;
expectation of drilling on PPLs 235 and 261; appraisal of PRL 21;
and other expectations, beliefs, plans, goals, objectives,
assumptions, information and statements about possible future
events, conditions, results of operations or performance.
The factors or assumptions on which the forward-looking
information is based include: assumptions inherent in current
guidance; projected capital investment levels; the flexibility of
capital spending plans and the associated sources of funding; the
successful and timely implementation of capital projects; the
continuation of tax, royalty and regulatory regimes; ability to
obtain regulatory and partner approval; commodity price and cost
assumptions; and other risks and uncertainties described in the
filings made by the Company with securities regulatory authorities.
The Company believes the material factors, expectations and
assumptions reflected in the forward-looking information are
reasonable but no assurance can be given that these factors,
expectations and assumptions will prove to be correct. Closing of
any transactions will be subject to receipt of all necessary
regulatory approvals and completion of definitive agreements.
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
news release. The material risk factors include, but are not
limited to: the risks of the oil and gas industry, such as
operational risks in exploring for, developing and producing crude
oil and natural gas; risks and uncertainties involving geology of
oil and gas deposits; the uncertainty of reserves and resources
estimates, reserves life and underlying reservoir risk; the
uncertainty of estimates and projections relating to production,
costs and expenses; risks related to capital allocation decisions,
including potential delays or changes in plans with respect to
exploration or development projects or capital expenditures;
fluctuations in oil and gas prices, foreign currency exchange
rates, interest rates and tax or royalty rates; the outcome and
effects of any future acquisitions and dispositions; health,
safety, security and environmental risks; environmental regulatory
and compliance risks; uncertainties as to the availability and cost
of credit and other financing and changes in capital markets; risks
in conducting foreign operations (for example, civil, political and
fiscal instability and corruption); changes in general economic and
business conditions; the possibility that government policies,
regulations or laws may change or governmental approvals may be
delayed or withheld; and results of the Company's risk mitigation
strategies.
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 or strategy are included
in Talisman's most recent Annual Information Form. 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. 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.
Contacts: Talisman Energy Inc. - Media and General Inquiries
David Mann, Vice-President, Corporate & Investor Communications
403-237-1196 403-237-1210 (FAX)tlm@talisman-energy.com Talisman
Energy Inc. - Shareholder and Investor Inquiries Lyle McLeod,
Vice-President, Investor Relations 403-237-1020 403-237-1902
(FAX)tlm@talisman-energy.com www.talisman-energy.com Mitsubishi
Corporation - Media and General Inquiries: Shunsuke Nanami, Manager
Press Relations Team, Corporate Communications Dept. +81 (3) 3210
3917 +81 (3) 5252 7705 (FAX)shunsuke.nanami@mitsubishicorp.com
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