Talisman increases E&D spending
Encouraged by prospects for high oil and gas prices, Talisman Energy Inc., Calgary, is increasing its Canadian exploration and development spending this year by 23% to $641 million. The company plans to spend some $1.6 billion overall, including net property and asset acquisitions of $260 million.
Encouraged by prospects for high oil and gas prices, Talisman Energy Inc., Calgary, is increasing its Canadian exploration and development spending this year by 23% to $641 million (Can.).
The company plans to spend some $1.6 billion (Can.) overall, including net property and asset acquisitions of $260 million. Talisman expects to generate almost $2.3 billion in cash flow, based on a full-year average price of $28 (US)/bbl for benchmark West Texas Intermediate oil and total production of 415,000 boe/d, up 34% from 1999 production levels, officials said.
"As some of our international projects come to successful completion and their demands for cash reduce, we can profitably step up activity in Canada,'' said Jim Buckee, Talisman's president and CEO. "Strong fundamentals for better oil and domestic gas prices give us the confidence to pursue domestic opportunities more vigorously," he said.
A significant portion of Talisman's increased budget is directed at natural gas opportunities in the deeper portion of the Western Canada Sedimentary Basin.
"We are one of the leading North American deep gas companies, with the land base, technical skills, and financial strength to grow our large existing gas portfolio. We have positioned Talisman in areas with the greatest onshore reserve potential in Canada. In addition, we have numerous development opportunities within our Western Canada oil operations,'' Buckee said.
The company is increasing its Canadian exploration budget by 31% to $222 million (Can.), with virtually all of that addition earmarked for gas opportunities. Of that increase, about 30% will be spent on land, 20% on seismic data acquisition, and 50% on drilling 22 net wells in the Peace River Arch, West Central Plains, Deep Basin, and Foothills areas.
Talisman also plans to increase its Canadian development program by 19% to $419 million (Can.). Most of that budget will be directed at low-cost, low-risk oil projects in Chauvin, Ontario, and Carlyle. About $15 million will be spent on gas development opportunities, official said.
That increased spending is expected to add 5,000-6,000 boe/d of production next year.
Talisman is the largest independent Canadian oil and gas producer, with operations in Canada, the North Sea, Indonesia, and Sudan.