By OGJ editors
HOUSTON, Jan. 11 -- Talisman Energy Inc., Calgary, outlined a $5.2 billion (Can.) budget for 2010—an increase of more than 10% from its 2009 budget.
Talisman says it plans to spend $1.6 billion on North American shale plays. Within the Pennsylvania Marcellus play in the US and the Montney play in British Columbia, Talisman expects to double its development drilling as compared with 2009.
Talisman plans development spending of $780 million in Southeast Asia, primarily on oil developments in Vietnam and Australia. The company also plans to spend $800 million on UK development projects.
About $270 million was allotted for 2010 spending on conventional properties.
Talisman said it is examining “the sale of a significant amount of noncore conventional assets in North America, depending on market conditions.” These assets, which were not identified, currently produce 40,000 boe/d.
John A. Manzoni, Talisman president and chief executive officer, said the company remans “vigilant” in looking for acquisitions.
"We expect returns to increase,” Manzoni said, adding he expects the company will reduce its finding and development costs.
Talisman said its activity levels will be “robust” given $60/bbl oil and $3.50/MMbtu gas prices on the New York Mercantile Exchange. The company plans to issue yearend 2009 results on Feb. 10.