Husky Energy buys Alberta gas assets from Talisman
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Sep 02, 2010 12:12PM
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* Deal includes 65 mmcfd of gas production * Husky aims to fill Ram River gas plant * Transaction brings Talisman sale proceeds to C$1.9 bln CALGARY, Alberta, Sept 1 (Reuters) - Husky Energy Inc <HSE.TO> is buying Alberta natural gas properties from Talisman Energy Inc <TLM.TO> for an undisclosed sum as a way to get better use out of one its gas plants, it said on Wednesday. Husky, which is controlled by Hong Kong billionaire Li Ka-shing, said the acquisition provides it with 65 million cubic feet a day of gas production in the Rocky Mountain foothills of west-central Alberta. The company already produces about 50 million cubic feet a day in the region. The assets have proved reserves of 37 million barrels of oil equivalent and probable reserves of 11.7 million barrels of oil equivalent on 160,000 acres (64,750 hectares). For Talisman, the sale represents the last of five packages of non-core Canadian properties it had put up for sale as part of its effort to concentrate on unconventional gas in Canada and the United States, spokeswoman Phoebe Buckland said. Neither company gave a price tag for the deal, which comes during a period of weak natural gas prices. In April, Talisman pegged its proceeds from all the sales at C$1.9 billion ($1.8 billion). Husky said its Ram River gas plant already processes a large portion of the output it is buying. It expects to integrate more production from the acquired assets over the next five years. Husky shares rose 30 Canadian cents, or 1 percent, to C$25.14 on the Toronto Stock Exchange. Talisman climbed 36 Canadian cents, or 2 percent, to C$17.13.