Noreco buys Talisman's Danish oil unit for $83 mln

OSLO (Reuters) - Norwegian Energy Co ASA (NOR.OL: Quote, Profile, Research) said on Friday it will buy Talisman Energy Inc's (TLM.TO: Quote, Profile, Research) oil Danish unit for $83 million, and that it plans to finance the purchase with a share issue.

"The acquisition price is set at $83 million and Noreco will finance the acquisition through a private placement of a minimum of 300 million crowns and up to 450 million crowns ($59 million to $88 million), whereof the minimum amount has been guaranteed," the company, known as Noreco, said.

The interests in the Danish sector of the North Sea include 30 percent of License 6/95, which contains the Siri field.

Talisman's production from the field in 2007 averaged about 2,600 barrels of oil equivalent a day. Its share of proved reserves were 2.1 million barrels of oil equivalent.

Talisman, Canada's No. 3 independent oil producer, said the move fits with its plan to rejig its asset base around the world to concentrate on key regions.

Chief Executive John Manzoni is expected to outline soon which regions the company will pour its resources into following a review of its assets.

Talisman shares were off 20 Canadian cents at C$20.24 on the Toronto Stock Exchange.

($1=5.1 Norwegian crowns)

($1=$1.01 Canadian)

(Reporting by Wojciech Moskwa and Jeffrey Jones; editing by Rob Wilson)