Talisman Energy Announces $595 million Sale of Colombian Pipeline Interest
December 10 2013 - 6:42AM
Marketwired
Talisman Energy Announces $595 million Sale of Colombian Pipeline
Interest
CALGARY, ALBERTA--(Marketwired - Dec 10, 2013) - Talisman Energy
Inc. (Talisman) (TSX:TLM)(NYSE:TLM) today announced that two of its
affiliates have reached agreement to sell their approximately 12%
equity interest in the Ocensa Pipeline in Colombia to an investment
group led by Advent International for a total cash consideration of
approximately $595 million. All values in this press release are in
US$ unless stated otherwise.
"In March, I set a $2-3 billion, 18-month disposition target for
Talisman," said Hal Kvisle, President and CEO of Talisman Energy.
"In November, we announced the sale of the majority of our Montney
position for CDN$1.5 billion, which when combined with some small
Canadian assets and our equity interest in the Ocensa pipeline,
brings our sale proceeds to approximately $2.2 billion. We will use
these to reduce debt and strengthen our balance sheet, and will
continue to progress additional opportunities to unlock value.
These transactions provide strong momentum going into 2014, where
we will continue to focus on our two core regions, our four
strategic priorities, and on creating sustainable shareholder
value."
As part of the transaction:
- Two Talisman affiliates will sell their approximately 12%
equity interest in the Ocensa Pipeline for approximately $595
million.
- Other Talisman affiliates retain crude transportation rights
for approximately 63,000 bopd. Talisman will use these rights to
transport proprietary crude, and will generate third party revenue
from surplus capacity.
The dispositions announced by Talisman are part of a larger
Talisman led sales process involving Total Colombia Pipeline
(affiliates of Total S.A.) and CEPSA, which will result in the
investment group led by Advent International acquiring an aggregate
approximately 22% shareholding in the Ocensa pipeline.
"Through this transaction, we have unlocked net value from our
portfolio and retained our crude transportation rights," said Hal
Kvisle, President and CEO of Talisman Energy. "This enables us to
maintain our competitive advantage by transporting oil from our own
operations and generating third party revenue from any surplus
capacity."
BMO Capital Markets and Credit Suisse Securities acted as joint
advisors to Talisman.
Advisories
This news release contains information that constitutes
"forward-looking information" or "forward-looking statements"
(collectively "forward-looking information") within the meaning of
applicable securities legislation. This forward-looking information
includes, among others, statements regarding: business strategy,
priorities and plans; planned use of proceeds; and other
expectations, beliefs, plans, goals, objectives, assumptions,
information and statements about possible future events,
conditions, results of operations or performance.
The factors or assumptions on which the forward-looking
information is based include: assumptions inherent in current
guidance; projected capital investment levels; the flexibility of
capital spending plans and the associated sources of funding; the
successful and timely implementation of capital projects; the
continuation of tax, royalty and regulatory regimes; ability to
obtain regulatory and partner approval; commodity price and cost
assumptions; and other risks and uncertainties described in the
filings made by Talisman with securities regulatory authorities.
Talisman believes the material factors, expectations and
assumptions reflected in the forward-looking information are
reasonable but no assurance can be given that these factors,
expectations and assumptions will prove to be correct.
Forward-looking information for periods past 2013 assumes
escalating commodity prices. Closing of the transaction will be
subject to receipt of all necessary regulatory approvals and
completion of definitive agreements.
Undue reliance should not be placed on forward-looking
information. Forward-looking information is based on current
expectations, estimates and projections that involve a number of
risks which could cause actual results to vary and in some
instances to differ materially from those anticipated by Talisman
and described in the forward-looking information contained in this
news release. The material risk factors include, but are not
limited to: the risks of the oil and gas industry, such as
operational risks in exploring for, developing and producing crude
oil and natural gas; risks and uncertainties involving geology of
oil and gas deposits; risks associated with project management,
project delays and/or cost overruns; uncertainty related to
securing sufficient egress and access to markets; the uncertainty
of reserves and resources estimates, reserves life and underlying
reservoir risk; the uncertainty of estimates and projections
relating to production, costs and expenses, including
decommissioning liabilities; risks related to strategic and capital
allocation decisions, including potential delays or changes in
plans with respect to exploration or development projects or
capital expenditures; fluctuations in oil and gas prices, foreign
currency exchange rates, interest rates and tax or royalty rates;
the outcome and effects of any future acquisitions and
dispositions; health, safety, security and environmental risks,
including risks related to the possibility of major accidents;
environmental regulatory and compliance risks, including with
respect to greenhouse gases and hydraulic fracturing; uncertainties
as to the availability and cost of credit and other financing and
changes in capital markets; risks in conducting foreign operations
(for example, civil, political and fiscal instability and
corruption); risks related to the attraction, retention and
development of personnel; changes in general economic and business
conditions; the possibility that government policies, regulations
or laws may change or governmental approvals may be delayed or
withheld; and results of Talisman's risk mitigation strategies,
including insurance and any hedging activities. The foregoing list
of risk factors is not exhaustive. Additional information on these
and other factors which could affect Talisman's operations or
financial results or strategy are included in Talisman's most
recent Annual Information Form. In addition, information is
available in Talisman's other reports on file with Canadian
securities regulatory authorities and the United States Securities
and Exchange Commission. Forward-looking information is based on
the estimates and opinions of Talisman's management at the time the
information is presented. Talisman assumes no obligation to update
forward-looking information should circumstances or management's
estimates or opinions change, except as required by law.
Unless the context indicates otherwise, references in this news
release to "Talisman" includes, for reporting purposes only, the
direct or indirect subsidiaries of Talisman Energy Inc. and the
partnership interests held by Talisman Energy Inc. and its
subsidiaries. Such use of "Talisman" to refer to these other legal
entities and partnership interests does not constitute waiver by
Talisman Energy Inc. or such entities or partnerships of their
separate legal status, for any purpose.
Talisman Energy Inc. - Media and General InquiriesBrent
AndersonManager, External
Communications403-237-1912tlm@talisman-energy.comTalisman Energy
Inc. - Shareholder and Investor InquiriesLyle McLeodVice-President,
Investor
Relations403-767-5732tlm@talisman-energy.comwww.talisman-energy.com
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