Calgary-based Progress Energy Resources Corp. has closed a deal to create a strategic partnership with a Malaysian oil and gas company worth $1.07 billion.

The deal gives the Malaysian company, Petronas, a 50 per cent stake in the working interest to develop part of the Montney shale assets, in Northeast B.C.

The specific assets are the Altares, Lily and Kahta properties.

“Both parties have worked diligently and cooperatively towards the completion of the agreements that form the basis of our strategic partnership,” said Michael Culbert, president and CEO of Progress.

Petronas will also be examining the possibility of developing a Liquefied Natural Gas export facility on the province’s west coast. The feasibility study for the project is expected to begin immediately.