* To sell 127,000 acres to Malaysia-controlled Progress
* Deal part of Talisman's plan to raise $3 bln in asset
sales this year
* Regulatory nod expected in first quarter of 2014
Nov 8 Talisman Energy Inc said it would
sell a stake in some of its natural gas assets in British
Columbia's Montney field to Malaysia-controlled Progress Energy
Canada Ltd for C$1.5 billion ($1.44 billion) as it restructures
Talisman, in which activist investor Carl Icahn has a 6
percent stake, has been trying to cut costs and boost its share
The Canadian oil producer will sell about three quarters, or
127,000 acres, of its holdings in the Farrell Creek and Cypress
areas of British Columbia as a part of the deal.
The assets produced about 11,000 barrels of oil equivalent
per day as of Oct. 1 and production is expected to increase in
the fourth quarter, Progress Energy, a unit of Malaysia's state
oil firm Petronas, said on Friday.
Petronas acquired Canadian explorer Progress Energy
Resources for $5 billion last year to access shale fields in
northeastern British Columbia.
Talisman will retain its Groundbirch and Saturn holdings,
spanning 48,000 acres in Montney.
The Montney stake sale is a part of the company's plan to
raise between $2 billion and $3 billion from asset sales this
year. Talisman is also looking to shed its stake in the Ocensa
pipeline in Colombia.
The company said it expected to get regulatory approvals for
the deal in the first quarter of 2014 and would use the proceeds
to repay debt.
The sale will help Talisman focus on its Edson-Duvernay
The company said earlier this week that it scrapped plans to
sell properties in the northern portion of the Duvernay shale
field in central Alberta after it failed to find a suitable
Talisman said it now wanted to find a joint venture partner
for its Duvernay properties to help finance drilling in the
Jefferies LLC and Scotiabank were joint advisers to the
Talisman shares closed at C$12.22 on Thursday on the Toronto