Talisman Farms into Hallwood’s US Shale Plays

Talisman Energy’s wholly owned limited partnership, FEI Shale, has reached an agreement to earn up to a one-third working interest in US properties owned by Hallwood Energy.

The agreement calls for a financial commitment of up to $125 million by FEI Shale (Fortuna) over a period of 12 to 18 months depending on the pace of drilling.

Upon completion of the capital program, Fortuna will have earned a one-third interest in substantially all of Hallwood’s assets, including properties in Texas, Arkansas and Louisiana, for a total of 108,000 acres net.

As part of the agreement, Hallwood will provide Talisman and its affiliates with technical and consulting services for one year. Talisman and its affiliates will have access to Hallwood’s technical staff for assistance on its developing plays in the Montney, the Bakken, the Utica and Lorraine shales in Quebec, Canada, and Marcellus shales in New York and Pennsylvania.

John Manzoni, president and CEO of Talisman Energy, said: “This agreement gives us exposure in a number of areas where we have not been active, including the deep Barnett and Fayetteville shales. We also have a technical services agreement which is a significant part of this deal.”