Drilling success establishes new core natural gas area for Talisman Energy

16-Feb-2007 Intellasia | 05-OCT-2005 Ccnmatthews | Press Release | 3:23 PM Print This Post

Talisman Energy Inc. plans to add upwards of 35 mmcf/d of production (net Talisman sales gas) from the Northern Alberta Foothills area over the next 14 months. This forecast is based on six wells that have already tested and are waiting to be tied in.

In the Narraway area, one well tested(1) at 19mmcf/d and three others tested at rates between 7 and 12 mmcf/d each. Two wells in the Grande Cache area tested at approximately 15 mmcf/d each. Talisman’s working interest in these wells ranges between 50-68%. Talisman plans to drill 10 additional wells in the area by the end of 2006.

“This development is an example of the application of Talisman’s North American deep gas strategy. We have built a significant land position to create this core area, using our technical expertise to find and develop the gas, which we will ship through Talisman owned infrastructure,” said Dr Jim Buckee, President and Chief Executive Officer. “There is significant natural gas potential in the Northern Alberta Foothills region and Talisman is extremely well-positioned.”

The Northern Alberta Foothills is a new core exploration and development area, mid-way between Talisman’s successful structural plays in Northeastern B.C. and the Central Alberta Foothills, with significant high deliverability, multi-zone potential. Talisman is the largest mineral rights holder in the area, having an average 56% working interest in 345,600 gross acres. The Co recently acquired 73,100 gross (66,500 net) acres of prospective land along the trend.

Talisman and its co-venturers have sanctioned and commenced construction of the Lynx Pipeline System which will act as the main trunk system for the Grande Cache area. The system, extending from the Findley area (east of Grande Cache) northwest through the heart of the trend, will consist of 72 kilometres of 12 inch line and will have an initial raw gas capacity of 130 mmcf/d. Regulatory approval has been received and completion of the US$72 million (45% Talisman working interest) project is expected by the fourth quarter of 2006. The Lynx system will deliver raw gas at Findley to a variety of pipelines including Talisman’s wholly owned Central Foothills Gas Gathering System (CFGGS), generating incremental transportation and processing revenues for Talisman’s Midstream operations.

Talisman is also planning the Palliser Pipeline System which will connect wells in the northernmost part of the Narraway trend to existing pipelines that move gas into British Columbia. The Palliser system will have an initial raw gas capacity of 45 mmcf/d and will cost approximately US$30 million (100% Talisman working interest). Startup is also planned for the fourth quarter of 2006.

Talisman Energy Inc. is a large, independent oil and gas producer with operations in Canada and, through its subsidiaries, the North Sea, Indonesia, Malaysia, Vietnam, Algeria, Trinidad and Tobago and the United States. Talisman’s subsidiaries also conduct business in Colombia, Qatar and Peru. Talisman has adopted the International Code of Ethics for Canadian Business and is committed to maintaining high standards of excellence in corporate citizenship and social and environmental responsibility wherever its business is conducted. The Co is a participant in the United Nations Global Compact, a voluntary initiative that brings together companies, governments, civil society and other groups to advance human rights, labour and environmental principles. Talisman’s shares are listed on the Toronto Stock Exchange in Canada and the New York Stock Exchange in the United States under the symbol TLM.

 


Category: ResourceAsia

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