(Adds detail and comment in initial four paragraphs and updates
share price; in U.S. dollars unless noted)
CALGARY, Alberta, July 29 Talisman Energy Inc
, Canada's fifth-largest independent petroleum producer,
declined to offer additional details on its talks with Spain's
Repsol SA on Tuesday, after it reported a surprise
loss, hurt by lower gas prices in North America and higher
royalty payments on production.
Hal Kvisle, Talisman's chief executive, declined to offer
further detail on the negotiations, saying on a conference call
that he could not offer any comment beyond what the company
acknowledged in a press release last week.
"We've been approached by Repsol with regards to various
transactions," Kvisle said on a conference call. "There is no
assurance that this will result in any transaction. I hope you
understand that I can't comment further on the matter."
Talisman shares rose more than 11 percent last week after
reports emerged that Repsol may be interested in the Canadian
oil producer whose profits and stock has been hampered by low
natural gas prices and weak results from its North Sea
The company on Tuesday reported a second-quarter loss of
$237 million, or 23 cents per share, compared with a profit of
$97 million, or 9 cents per share, a year earlier.
The loss included a $171 million charge related mainly to
hedging losses, Talisman said.
Excluding items, the loss was 1 cent per share, while
analysts on average had expected an operating profit of 4 cents
per share, according to Thomson Reuters I/B/E/S.
Total production increased 4 percent to 375,000 barrels of
oil equivalent per day, higher than most analysts expected.
Total revenue rose 4.4 percent to $1.24 billion, but total
expenses jumped 47.4 percent to $1.4 billion.
The Calgary, Alberta-based company's stock closed at C$11.93
on the Toronto Stock Exchange, up 21 Canadian cents.
(Reporting by Scott Haggett in Calgary and Sneha Banerjee in
Bangalore; Editing by Saumyadeb Chakrabarty, Joyjeet Das and