Spring offloads license interests to Talisman

Spring Energy is selling stakes in three Norwegian licenses to Talisman Energy for $114-129.5 million, dependent on reaching near-term milestones.

Offshore staff

OSLO, Norway -- Spring Energy is selling stakes in three Norwegian licenses to Talisman Energy for $114-129.5 million, dependent on reaching near-term milestones.

The package comprises 15% of PL 378, containing the Grosbeak discovery; 20% of PL 375, including the Beta discovery; and 20% of PL 551. Talisman will also assume Spring Energy’s remaining carry commitments in these licenses.

Following the sale, Spring Energy says it will be in a much stronger financial position to accelerate and expand its growth plan. It plans to use the proceeds to further develop its remaining exploration assets, and to pursue development of certain discoveries through to the production phase.

Over the next 18 months, Spring Energy expects to participate in eight or nine exploration wells, results of which should add 80-100 MMbbl of contingent resources to its asset base. The company also plans to pursue opportunities in Norway’s forthcoming licensing rounds.

Among ventures it is committed to are Wintershall’s Maria oil and gas discovery on PL 475BS in the Norwegian Sea and the BG-operated Bream field in the North Sea, where development planning is advanced.

09/16/2010

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