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.
â€œBoth parties have worked diligently and cooperatively towards the completion of the agreements that form the basis of our strategic partnership,â€ 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 provinceâ€™s west coast. The feasibility study for the project is expected to begin immediately.