PETRONAS acquires Montney assets from Talisman for Cdn$1.5 billion
Talisman is to sell 127,000 net acres in the Montney (Canada) to PETRONAS subsidiary Progress Energy for US$1.44 billion. The deal includes a 50% interest the Farrell Creek and Cypress A lands (Sasol holds the other 50% interest), plus acreage in the Greater Cypress area. Under our base case, we value the assets at US$1.2 billion. This assumes that around 70% of the land can be commercially developed, and that all gas is sold into North American markets.For PETRONAS, however, this deal is ...