Talisman's Montney shale play in British Columbia provides Talisman with many opportunities at different stages of maturity. Talisman holds 194,000 Tier 1 net acres with approximately 5,400 net drilling locations.
Talisman drilled approximately 30 net wells in the Montney shale play in 2010. Talisman will continue with the ongoing development of the Farrell Creek and Greater Cypress areas in 2011. The Company plans to drill approximately 35 net wells as part of the development program.
In December 2010, Talisman reached an agreement to sell 50% of its working interest in its Farrell Creek assets in the Montney shale play to a subsidiary of Sasol Limited. Talisman and Sasol further agreed to establish a partnership to develop the Farrell Creek assets with Talisman acting as managing partner and operator. Pursuant to the agreement, Sasol has agreed to pay Talisman $262.5 million at closing with the remaining $787.5 million as a funding commitment for Talisman's share of future capital spending in the Farrell Creek area for a total consideration of $1.05 billion. In addition, Talisman and Sasol have agreed to conduct a feasibility study around the economic viability of a facility in Western Canada to convert natural gas to liquid fuels using Sasol's commercial gas to liquids technology. Talisman and Sasol have also agreed to collaborate on certain other western Canadian natural gas opportunities. Subject to finalization of definitive agreements and receipt of regulatory approvals, closing is expected to occur in the first quarter of 2011.
We are currently in the process of fracturing one well in the Montney region and anticipate that by mid-2011 our program will increse to 45 - 50 wells.
Learn more about Hydraulic fracturing and Talisman's shale operations.
