Talisman Energy Inc. will sell a 50 per cent stake in its Farrell Creek shale gas field in northern B.C. to South African energy and mining giant Sasol Ltd. for $1.05 billion.

Talisman president John Manzoni called the pact with Sasol a strategic partnership between the two companies. (Jeff McIntosh/Canadian Press)

Calling the pact a "strategic partnership," Calgary-based Talisman said it will continue to run the property while selling half the working interest in the property, part of its Montney shale gas field.

"This is a strategic move towards unlocking some of the value of our Montney assets for us and our new partner, consistent with the strategy of de-risking and developing Talisman's very large shale opportunities in the region," Talisman president John Manzoni said.

"The acquisition of this high-quality natural gas asset will accelerate our upstream growth while also advancing Sasol's already strong GTL value proposition," Sasol CEO Pat Davies said.

The two companies also agreed to collaborate on other projects, including a feasibility study into the economic viability of a facility in Western Canada to convert natural gas to liquid fuels.

The deal is subject to regulatory approval, but is expected to close in the first half of 2011.

With a market capitalization of roughly $30 billion US, NYSE-listed Sasol explores and develops properties in Africa and Asia. Outside of North America, Talisman is a major natural gas player in the North Sea and Southeast Asia.