Talisman Energy Announces Agreements to Sell Non-Core Canadian Assets for $1.9 Billion
April 07 2010 - 9:00AM
Marketwired
Talisman Energy Inc. (TSX: TLM) (NYSE: TLM) has agreed to sell a
number of non-core assets in Canada with total proceeds of
approximately C$1.9 billion, through five separate transactions.
"We are very pleased with the outcome of the sales process that
we announced in January," said John A. Manzoni, President and Chief
Executive Officer. "Although these are excellent assets with a
great future, they can't effectively compete for capital within our
emerging strategic asset mix. These sales are value accretive and
will help us focus on, finance and build our growing, low-cost
North American shale gas business."
These transactions include approximately one million net acres
of land in the greater Peace River Arch, central Alberta Foothills
and greater Hinton areas in Alberta, as well as the company's
Ontario properties. The assets are currently producing 42,500 boe/d
(approximately 90% natural gas), with net proved reserves of 120
mmboe. The sale equates to approximately $44,000/boe/d and $16/boe
of proved reserves and seven times cash flow.
These transactions are expected to be finalized by the end of
the second quarter of 2010, subject to normal regulatory
approvals.
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.
Forward-Looking Information
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: planned sales of
assets; business strategy and plans; expected timing of completion
of the asset sales 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 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.
Reserves Information
Talisman's disclosure of reserves data and other oil and gas
information is made in reliance on an exemption granted to Talisman
by Canadian securities regulatory authorities, which permits
Talisman to provide certain disclosure in accordance with US
disclosure requirements. The primary differences between the US
disclosure requirements and the Canadian disclosure standards under
National Instrument 51-101 ("NI 51-101") are disclosed in the
Company's most recent Annual Information Form. The information
provided by Talisman in this news release may differ from the
corresponding information prepared in accordance with NI 51-101
standards. Net proved reserves as stated in the release refer to
Talisman's net share before royalty interest.
Gross Production
In this news release, Talisman makes reference to production
volumes. Such production volumes are stated on a gross basis, which
means they are stated prior to the deduction of royalties and
similar payments. In the US, net production volumes are reported
after the deduction of these amounts.
Boe Conversion
Throughout this news release, barrels of oil equivalent (boe) is
calculated at a conversion rate of six thousand cubic feet (mcf) of
natural gas for one barrel of oil and is based on an energy
equivalence conversion method. Boes may be misleading, particularly
if used in isolation. A 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
equivalency at the wellhead.
Canadian Dollars
Dollar amounts are presented in Canadian dollars, except where
otherwise indicated.
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
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)
tlm@talisman-energy.com www.talisman-energy.com