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Talisman Forms Strategic Joint Venture with Mitsubishi in Papua New Guinea; Talisman Edging Higher in Afternoon Trade

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Talisman Energy Inc. (TLM.TO) edged higher by almost 1% in the afternoon, nearly hitting day high $13.99, after announcing that it has reached an agreement with Mitsubishi Corporation on Mitsubishi's entry into 9 of Talisman's licences in Papua New Guinea's onshore Western Province.

The transaction is via a farmout from Talisman effective January 1, 2012, subject to approvals by government and joint venture partners. The deal is valued at approximately US$280 million and will be paid in the form of a capital carry. Following the farmout, Talisman and MC licensed equity positions will average 40% and 20%, respectively, in these nine licences.

TLM is now priced $13.95 a share. More than 1.6 million TLM shares have already changed hands.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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