The two Calgary-based companies are reportedly joining other producers who are offering acreage after Exxon Mobil, and the Malaysian company Petronas, paid billions of dollars for stakes in the Montney. Located in Alberta and British Columbia, the 26,000 square kilometre Montney formation is estimated by the B.C. government to contain 450 trillion cubic feet of natural gas.
“It’s undeniably a buyer’s market,” says Toronto industry analyst Robert Mark. “There is more up for sale than I've ever seen in my 12 years in the business, between land packages, joint venture opportunities and full companies."
There's speculation private talks may have prompted Talisman and CNRL to list acreage for sale, but Greg Dean, another Toronto based analyst, citing a supply and demand imbalance, suggests going forward buyers now won’t offer the same premiums as Exxon and Petronas, due to an acreage glut, much of it not in the best parts of the Montney.
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