By OGJ editors
HOUSTON, June 12 -- A Talisman Energy Inc. unit plans to invest as much as $125 million within 18 months to earn working interest in properties owned by Hallwood Energy LP.
Talisman Pres. and Chief Executive Officer John Manzoni said, "This agreement gives us exposure in a number of areas where we have not been active, including the deep Barnett and Fayetteville shales."
Previously, Manzoni said Talisman would spend $1.1-1.3 billion through 2009 evaluating its unconventional assets in Canada and the US (OGJ Online, May 22, 2008).
Fortuna Energy Inc. Shale LP, a wholly owned limited partnership of Calgary's Talisman, agreed to invest in Hallwood Energy in exchange for a stake in Hallwood's assets in Texas, Arkansas, and Louisiana.
Privately owned Hallwood Group Inc., a diversified holding company, owns 25% of Hallwood Energy of Dallas. Hallwood Energy's 2008 drilling program calls for 11 wells.
Shale properties
The Talisman agreement involves Hallwood's 40% working interest in more than 43,000 acres in the Barnett and Woodford shales in the West Texas counties of Reeves and Culberson.
The agreement also involves Hallwood's 24,500 net acres in the Fayetteville shale in White and Faulkner counties in Arkansas.
In addition to the assets, the agreement includes a technical-services arrangement in which Hallwood's technical staff would assist Talisman for a year.
Manzoni said, "Hallwood has a proven track record in the early-stage development of shale programs, and we will use this to augment our experience in the piloting and development of our unconventional plays."
