Talisman Energy To Sell Part Of Montney Position For C$1.5 Bln Cash -Quick Facts

(RTTNews) - Talisman Energy Inc. (TLM, TLM.TO) has agreed to sell a portion of its Montney acreage in northeast British Columbia to Progress Energy Canada Ltd. for C$1.5 billion cash. The transaction represents the sale of nearly 75% of Talisman's Montney position in the Farrell Creek and Cypress areas of British Columbia; 65 mmcfe/d of Farrell Creek production as of Oct 1, 2013; and C$800 million of remaining third party capital carry estimated at 2013 year end.

Chief Executive, Hal Kvisle, stated, "The sale of this long-dated position represents a strong return on our Montney investment and brings us closer to achieving the $2-3 billion asset disposition target we set out in March this year."

Following the receipt of applicable regulatory approvals, the company expects to use the proceeds to pay down debt and strengthen its balance sheet in the first quarter of 2014. Talisman retains its Groundbirch and Saturn assets, including around 48,000 net acres of prospective Montney land.

Jefferies LLC and Scotiabank acted as joint advisors to Talisman.