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Talisman Energy Inc. announced that it has reached an agreement to sell part of its Montney acreage in northeast British Columbia to Progress Energy Canada Ltd. for a total cash consideration of $1.43 billion.

The transaction includes the sale of 75% (127,000 acres) 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, which is expected to increase in the fourth quarter as we conclude the 2013 completion program, and associated facilities.

Also included is $750 million of remaining third party capital carry estimated at 2013 year end

“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,” said Hal Kvisle, CEO. “It is priced in line with recent major Montney transactions, further simplifies the company, and enables us to strengthen our focus on our Edson-Duvernay producing and development assets. Following receipt of applicable regulatory approvals, expected in the first quarter of 2014, we will use the proceeds to pay down debt and strengthen our balance sheet.”

Talisman retains its Groundbirch and Saturn assets including approximately 48,000 net acres of prospective Montney land.