Talisman Energy Inc. has reported an agreement with Xstrata Coal to sell certain non-producing, non-core coal properties located in Northeast British Columbia for US$500 million in cash.

"This is in keeping with our strategic objective to focus Talisman's portfolio on material, core assets," said Paul Smith, Executive Vice-President of North American Operations. "Unlocking the value from the divestment of this coal property will provide funds to support the objectives announced in our 2012 guidance."

The Sukunka coal property is located 60 kilometres south of Chetwynd, along the Peace River coalfield that extends 400 kilometres across Northeastern British Columbia. The licences cover an area of over 20,000 acres and contain an underground mineable deposit of coking coal (all Talisman 100% working interest).

The transaction is expected to close in March 2012. BofA Merrill Lynch has acted as advisor to Talisman for the sale process.

Tags: Talisman