Talisman evaluating its unconventional assets
Talisman Energy Inc. plans to spend $1.1-1.3 billion through 2009 evaluating natural gas potential within its 2.5 million net acres of unconventional assets in Canada and the US.
By OGJ editors
HOUSTON, May 22 -- Talisman Energy Inc. plans to spend $1.1-1.3 billion through 2009 evaluating natural gas potential within its 2.5 million net acres of unconventional assets in Canada and the US.
Speaking in New York on May 21, Talisman Chief Executive Officer John Manzoni outlined anticipated spending for drilling and pilot programs in Western Canada's Outer Foothills region, northeastern British Columbia's Montney area, and Saskatchewan's Bakken region. Some spending also is planned in Quebec and Appalachia.
"By the end of 2009, we will be able to make informed choices about ongoing levels of investment into our unconventional resource plays," Manzoni said. 'We will continue to invest into our existing operations in North America and the UK North Sea, giving us a firm base to underpin production growth elsewhere."
The Calgary company is repositioning its UK assets "as a steady, high-quality stream of cash flow" with a sustainable production of 80,000-100,000 boe/d through 2013, he said. Talisman also plans to boost its gas production in Southeast Asia, he said.
Emphasizing a strategy aimed at fewer, more material assets, Manzoni anticipates that Talisman will divest 35,000-40,000 boe/d of production by the end of 2009, and he expects proceeds of $1.5-2 billion from those sales.
Talisman plans to increase capital spending by $500 million to $4.9 billion in 2008 with the increment going to unconventional gas programs. Next year's capital budget is likely to reach $5.8 billion, although the final amount depends on the success and pace of Talisman's unconventional gas programs, Manzoni said.