On a Roll
Calgary-based Talisman Energy Inc. leads its North American-based peers in international oil and gas development
Talisman Energy Inc. is on a roll. The company recently reported record production, cash flow and earnings for 2005. Production exceeded the half-million-barrel mark for oil and natural gas output, making Talisman only the third Canadian company to reach that level, after EnCana Corp. and Canadian Natural Resources Ltd. President and CEO Jim Buckee told investors listening in on the March conference call that he was “sanguine” about the future.
Calgary-based Talisman leads its North American-based peers in international oil and gas development. Forty-seven per cent of the company’s portfolio is in North America. The remainder is in the North Sea (32 per cent), Southeast Asia, Trinidad and Tobago, and Algeria.
North America
Talisman is the leading deep gas explorer in western Canada. Over the past five years, the company has added more natural gas production below 10,000 feet than any of its competitors.
More North American natural gas is to come. Buckee recently hinted to investors that Talisman was up to something big with natural gas domestically, saying “We have one or two new plays in Canada that are quite revolutionary.” He wouldn’t get into specifics, saying only there was the potential for substantial upside.
Talisman anticipates growing its North American natural gas volumes by three to five per cent per year. With access to seven million acres of land, 39 trillion feet of original-gas-in-place and over 2,000 prospects, the company has a lot of room to grow.
North Sea
Beyond North America, Talisman’s primary holdings are in the North Sea, where natural gas production has grown from 30,000 barrels per day in 1995 to over 140,000 barrels per day, and the company is looking to expand. Earlier this year, the company’s subsidiary Talisman Energy (UK) Ltd., announced it was in talks with Shell U.K. Ltd. and Esso Exploration and Production UK to purchase their combined 85.8-per-cent interest in Fulmar field (Talisman already has a 12.7-per-cent interest in Fulmar) and 100-per-cent interest in Auk field.
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