TSXV:ESR.H - Post by User
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Spicoli420on Feb 22, 2012 12:14pm
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TLM farmout to Mitsubishi
TLM farmout to Mitsubishi UPDATE 1-Talisman Energy, Mitsubishi in Papua New Guinea JV 2 hours ago - Reuters
UPDATE 1-Talisman Energy, Mitsubishi in Papua New Guinea JV * Talisman reaches $280 mln deal with Mitsubishi
* Deal gives Mitsubishi entry into 9 onshore licences (Adds shares, details, background)
Feb 22 (Reuters) - Canada's Talisman Energy Inc said it reached a $280 million deal with Mitsubishi Corp, giving the Japanese company entry into nine of Talisman's onshore licences in Papua New Guinea's natural gas-rich Western Province.
The companies will aggregate natural gas and potentially export about 3 million metric tonnes of liquefied natural gas (LNG) per annum, Talisman said in a statement on Wednesday.
The farm-out agreement -- under which an owner of a working interest in an oil and gas lease assigns all or part of that interest to another party -- is effective Jan. 1.
Mitsubishi is looking at Papua New Guinea's huge LNG reserves to secure a stable energy supply for Japan -- the world's biggest LNG importer.
Japan, which has idled nearly all of its nuclear reactors following the Fukushima disaster last March, has rapidly increased LNG purchases, with imports growing 12 percent to a record 78.5 million tonnes last year.
Recently, Mitsubishi signed a C$2.9 billion deal with Encana Corp to buy a stake in the Canadian company's British Columbia gas assets.
Shares of Talisman were trading marginally lower at C$13.83 on Wednesday on the Toronto Stock Exchange. (Reporting by Shounak Dasgupta in Bangalore; Editing by Roshni Menon)