As part of the deal, Progress Energy will acquire 75% or 127,000 net acres of Talisman’s Montney position in the Farrell Creek and Cypress areas.

Progress will also acquire 65 mmcfe/d of Farrell Creek production, and associated facilities.

Talisman will retain Groundbirch and Saturn assets, which include around 48,000 net acres of prospective Montney land.

Talisman Energy CEO Hal Kvisle said the latest deal is priced in line with recent major Montney transactions and enables the company to focus on Edson-Duvernay producing and development assets.

"Following receipt of applicable regulatory approvals, expected in the first quarter of 2014, we will use the proceeds to pay down debt and strengthen our balance sheet," Kvisle added.