Talisman update on subsea projects and offshore exploration
Talisman (TSX:TLM) (NYSE:TLM) updated status on their projects and exploration in their 2007 Year result this week. The result of new projects coming onstream at Tweedsmuir, Enoch, Blane, Duart and Wood increased production from continuing operations in the North Sea.Production from continuing operations in the North Sea increased by 2% in 2007, the result of new projects coming onstream at Tweedsmuir, Enoch, Blane, Duart and Wood. In addition, the region continued to generate very high returns with netbacks averaging approximately $47/boe for the year.
Late in 2007, the Company announced a significant gas condensate discovery at Cayley in the Montrose Arbroath area. Appraisal drilling has been completed and the Company booked 21 mmboe of probable reserves associated with the discovery at year end. Talisman has a 58.97% working interest in the field. During the quarter, Talisman drilled a successful appraisal well at Auk North. The Auk field was acquired in the fourth quarter of 2006 and Talisman intends to redevelop the field, which should significantly increase production. The Wood field started production on December 19.
Talisman entered into an agreement to sell the Beatrice oil field with the transaction expected to close mid-2008. Near the Beatrice platform, the second wind farm demonstrator turbine was fully commissioned. Talisman drilled two successful Gyda development wells during the quarter. Development work is continuing on the Rev field with first production expected in mid-2008 and at Yme with first production expected in 2009.
In the Commercial Arrangement Area between Malaysia and Vietnam (PM-3 CAA), the Company has a major development project underway in the Northern Fields, with first gas sales expected by mid-2008 and oil production early in 2009. Development drilling commenced on schedule in late 2007 and a number of platforms and other major pieces of equipment were installed during the fourth quarter.
In Vietnam, the Hai Su Den exploration well in Block 15-02/01 was successful and tested at combined rates of over 21,000 boe/d, limited by test equipment. Two new exploration wells at Hai Su Bac and Hai Su Nau will start drilling shortly.
The five-well development drilling program in the Song Doc Field in Block 46/02 is complete and first oil is expected in the third quarter of 2008.
In Trinidad and Tobago, successful offshore exploration and development wells were completed during the quarter and pre-development activities continue for the Angostura Phase 2 gas development project.In South America, the Company continues to evaluate exploration opportunities, with 3-D seismic programs completed on Blocks 64 and 101 in Peru and acquisition of 2-D seismic in the Niscota and Tangara blocks in Colombia.
