Talisman Energy Inc., Calgary, acquired several US companies to solidify its position in the Ordovician Trenton-Black River gas play fairway in the northern Appalachian basin, where it has had an exploration joint venture since early 2001.
Through its Fortuna Energy Inc. subsidiary, Talisman paid $58.6 million to acquire Fairman Drilling Co. and FDC Venture 15 LP, DuBois, Pa., East Resources Inc., Wexford, Pa., and Abarta Oil & Gas Co., Pittsburgh.
The acquired interests include 23 bcf of proved gas reserves and 10 MMcfd of production. Target is 30 MMcfd in 2005. Half the purchase price will be allocated towards land, seismic, and other assets, including tax pools.
Subject to certain preferential rights, Talisman will acquire 268,000 acres of land in New York State, most of it 100% working interest. Talisman has identified more than 30 development locations on the lands and plans to drill two exploration and four development wells in 2003.
Dr. Jim Buckee, Talisman president and chief executive officer, said, "We are excited by the addition of this acreage, which will provide us with high netback, low cost, gas production and prospects close to infrastructure and markets. We are developing a highly prospective acreage position in the region, with the potential to develop a new core area over the next few years."
The Trenton-Black River play in New York is similar to the Trenton oil play in Ontario, Canada, where Talisman is the largest oil and gas producer.
Talisman announced in January 2001 that it formed a 5-year exploration joint venture in the Appalachian basin with the Seneca Resources Corp. arm of National Fuel Gas Co. Nearly 1 million acres of Seneca land in western New York and northwestern Pennsylvania were dedicated to that program. The program targets hydrocarbons in Ordovician age formations at 6,500-11,000 ft. Seneca is based in Buffalo, NY.