Boston, MA 05/06/2014 (wallstreetpr) – As per reports from Bloomberg, Statoil ASA (ADR) (NYSE:STO) alongwith its joint venture partner Talisman Energy Inc. (NYSE:TLM) are evaluating options to sell their joint holding in Texas’ Eagle Ford basin. According to people with knowledge of the matter, the sale could bring $4 billion cash to the two entities.
Sale Plans To Get Attention From Exploration Giants
Anonymous sources have disclosed that the two companies have been negotiating with the banks to manage the proposed sale of 50-50 partnership. The sale could attract large exploration companies such as Murphy Oil Corporation (NYSE:MUR), Encana Corporation (USA) (NYSE:ECA) and Devon Energy Corp (NYSE:DVN), which are looking at acquiring oil-producing properties. Both Statoil and Talisman have been divesting from assets across the globe as they intend to raise fresh capital for more profitable projects. Talisman had started looking for a prospective buyer for its share of interest in the Eagle Ford last year, but failed to find any buyer in part as Statoil was not willing to sell its share. In the meanwhile, representatives of both Statoil and Talisman refused to comment relating to the matter. Statoil initiated the operations at the eastern part of the Eagle Ford basin in July 2013, and as per its annual report, which currently produces 27,200 boe per day.
Talisman Failed To Progress Last Year
Last December, Talisman accepted to appoint two members on its board backed by Carl Icahn, who took a stake in Statoil ASA (ADR) (NYSE:STO). Additionally, the company took the services of Toronto-Dominion Bank (TD) in April to negotiate for the sale of its stake in Central Foothills region in Canada. In June, last year, Reuters had first published that Talisman had taken the services of Royal Bank of Canada to explore prospective buyers for its Eagle Ford stake for nearly $2 billion.
Statoil’s shares slipped marginally by 0.26% and closed at $30.58 yesterday.
