Talisman Energy Ltd., Calgary, plans $120 million (Canadian) in capital spending this year attributable to its 25% working interest in exploration and development operations in southern Sudan.
In fact, the company announced a large oil discovery at the Shelungo wildcat, the first well drilled on the west side of the controversial concession. Appraisal drilling will be required.
Talisman operates the 12.2 million-acre Greater Nile Oil Project (GNOP). Critics allege revenues from the project help the Khartoum government fund the war against Sudanese in the south (OGJ, Jan. 17, 2000, p. 38).
Last year, Talisman endorsed recommendations in an Amnesty International report regarding oil operations and the civil war. Talisman agreed to set up its own human rights monitoring program in Sudan (OGJ Online, Aug. 21, 2000).
The state oil companies of China, Malaysia, and Sudan are partners in GNOP, which is producing 211,000 b/d of crude that is exported.
Six fields produce oil for shipment through a 932-mile buried pipeline to a modern offshore loading and storage facility at Port Sudan on the Red Sea. Several other discoveries are scheduled for development. Production began in late 1999.
Talisman's 52,750 b/d share of production is forecast to increase to 65,000 b/d in 2002. The company plans to drill 17 exploration wells and 25 development wells on the Sudan acreage this year, said Jim Buckee, CEO.
In a report to analysts, Talisman also reported success in its deep drilling program for gas in the Alberta Foothills.
Talisman said it drilled 21 successful wells in 2000, up 62% from 1999, and spent $119 million, up 77% from 1999. It booked 130 bcf of proven gas reserves in 2000. Talisman expects to spend $139 million on deep drilling in the Alberta Foothills this year.
The company said five gas wells drilled in the region in fourth quarter 2000 all produced high rates on testing. Three wells flowed at levels near 10 MMcfd, one produced 13 MMcfd, and a fifth produced 15 MMcfd.
