Progress Energy agrees to purchase Talisman's Montney natural gas interests in British Columbia

Progress Energy agrees to purchase Talisman's Montney natural gas interests in 
British Columbia 
CALGARY, Nov. 8, 2013 /CNW/ - Progress Energy Canada Ltd. (Progress Energy), a 
subsidiary of Petroliam Nasional Berhad (PETRONAS), has reached an agreement 
to acquire an interest in two partnerships from Talisman Energy Inc. 
(Talisman). The acquisition includes about 127,000 net acres of Montney lands 
and production, as of October 1,2013, of approximately 11,000 barrels of oil 
equivalent per day, which is expected to increase in the fourth quarter of 
"These natural gas interests are an attractive complement to our existing 
North Montney asset base in northeastern British Columbia and are among the 
largest remaining North Montney lands not dedicated to a potential liquefied 
natural gas (LNG) project. The location, resource potential and operational 
synergies of these assets make this an ideal fit that expands our British 
Columbia resource base and increases our land position to 1.2 million acres," 
said Michael Culbert, President & CEO of Progress Energy. 
The acquisition includes wells, pipelines and processing plants in the Greater 
Farrell and Great Cypress areas. Progress Energy will be acquiring Talisman's 
50 percent interest in Greater Farrell, where Talisman's partner owns the 
remaining 50 percent interest. Under the terms of the Talisman partnership, 
the partner pays a disproportionate share of development costs. The value of 
this "capital carry" is approximately $870 million at the October 1, 2013 
effective date, and will be used to fund a portion of Progress Energy's share 
of capital investments in Greater Farrell area over the coming years. This 
capital carry offsets the total Progress Energy acquisition cost of 
approximately $1.5 billion. In addition, Progress Energy will acquire 
Talisman's partnership interest in the Greater Cypress area where Progress 
Energy has joint operations with Talisman. The acquisition is subject to 
customary closing conditions and adjustments, including the approval of 
Industry Canada. 
About Progress Energy 
Progress Energy, a leader in Canadian natural gas development, is building 
upon its history of performance excellence in North America to pioneer new 
infrastructure for delivering LNG to Pacific Rim markets. Producing more than 
350 million cubic feet equivalent of natural gas per day in northeast British 
Columbia and northwest Alberta, Progress is serving Canadian markets and 
ambitiously expanding productive capacity on its large Montney land holdings 
in preparation for the opening of new LNG markets in Asia. Progress is wholly 
owned by PETRONAS of Malaysia, a global leader in LNG and the principal owner 
of Vancouver-based Pacific NorthWest LNG Ltd. Progress and Pacific NorthWest 
LNG are helping craft a bright new future for Canada's energy exports.

SOURCE  Progress Energy Canada Ltd. 
Michael Culbert President & CEO Progress Energy Canada Ltd. 403-265-2510 
Media Contact: Cindy Rutherford Vice President Corporate Relations & Land 
Progress Energy Canada Ltd. 403-539-1777 
To view this news release in HTML formatting, please use the following URL: 
CO: Progress Energy Canada Ltd.
ST: Alberta
-0- Nov/08/2013 11:00 GMT
Press spacebar to pause and continue. Press esc to stop.