Talisman Energy Inc. is setting its short-term priority on developing liquids in the South Texas Eagle Ford liquids shale play and also on drilling to hold strategic land positions in some of its dry gas plays, Talisman Pres. and Chief Executive Officer Hal Kvisle said in a Mar. 6 webcast with investors.
“In the current low natural gas price environment, we have sharpened our focus in North America in 2013, reducing spending on dry gas plays.” Kvisle said.
In the Marcellus shale, Talisman has accumulated 5 tcf of contingent resource and an estimated 1,600 prospective drillsites. The Calgary parent company plans for Talisman Energy USA to selective spend capital to hold strategic core acreage in the Marcellus this year.
“The play is currently self-funded and provides material upside with an increase in North American natural gas prices,” Kvisle said of the Marcellus.
Elsewhere, Talisman said it is looking to sell some assets in the Montney and North Duvernay plays in Canada.
Kvisle said the Montney holdings are “far too large for a company like Talisman.”
He said, “We plan to spend approximately $1.1 billion in our core North American business in 2013—a decrease of roughly 30% from the previous year. Approximately 80% of capital is being allocated to three liquids-rich plays, with a significant reduction in spending on dry gas plays. This activity set positions Talisman to double its North American liquids production over the next few years.”
In the Eagle Ford, Talisman entered the year with 50 uncompleted wells, which it plans to complete and tie-in. Talisman’s partner in the Eagle Ford is Statoil ASA.
In the liquids-rich Duvernay shale, Talisman holds 350,000 net acres. ”We recently completed a well reporting one of the highest liquids ratios in the play, and we plan continued appraisal drilling in 2013,” Kvisle said.
In the Montney, Talisman continues to assess and appraise property and develop the liquids-rich eastern part of the play. “We will also invest capital at Edson to maintain mineral rights and assess liquids-rich opportunities,” Kvisle said.
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