Talisman sells properties for $1.9B

Calgary-based Talisman Energy Inc. has sold natural gas fields in five deals totalling $1.9 billion,the company announced Wednesday.

The properties being sold are in northern and central Alberta and Ontario and produce the energy equivalent of 42,500 barrels of oil per day.

The Ontario properties are onshore and offshore wells in Lake Erie, near Port Colborne, for which the buyer, Calgary-based Eurogas, paid $131 million.

Eurogas's primary project is its part interest in a $2-billion offshoregas storagefacility in Spain, expected to be operational in 2012. Eurogassaid in a news release the properties will provide it with cash flow of $2 million per month.

Talisman didn't disclose the names of the other buyers.Typically in the oil industry, it's left to the buyers to disclose the salebecause there might be competitively sensitive issues at play.

Talisman will use the proceeds from its sale to develop itsNorth American shale gas business. New technology is enabling energy companies to create fractures underground to produce gas from previously inaccessible shale formations. Talisman is exploring in shale formations in New York, Pennsylvania and Quebec.

Talisman shares closeddown 43 cents at $17.40 in Toronto Wednesday.