* Expects 2013 output at lower end of 375,000-395,000 boepd
* Cash flow of $2.1-$2.3 bln for 2013 vs prior view of $2.5
* Second-quarter loss, excluding items, $0.03/shr vs est
* Cash flow falls more than 34 pct
* Production declines 17 percent
* Norway properties put up for sale
CALGARY, Alberta, July 31 Talisman Energy Inc
posted a surprise second-quarter loss on Wednesday on
weak production from its North Sea operations as added its
Norwegian oil fields to the list of properties it has up for
The company, Canada's No.5 independent oil producer, said it
has opened a data room for potential buyers of its assets in
Norway's North Sea, which produce 13,000 barrels of oil per day,
adding to current plans to sell stakes in two Canadian shale-gas
fields and its stake in Colombia's Ocensa pipeline.
"We had a number of interested parties come to the data
room, Hal Kvisle, Talisman's chief executive, said on a
conference call. "Initial interest is strong. There's a number
of interesting attributes to our Norway business over and above
the production volumes."
The company hopes to raise as much as $3 billion from the
asset sales as it restructures it operations to boost its
profitability, cut debt and boost a flagging share prices.
The sale would end Talisman's efforts to resuscitate its Yme
oil field development offshore Norway. A faulty platform at the
field in the North Sea delayed production that was scheduled to
start last year. The company said in May it expected to remove
the faulty platform next year and submit a plan for a new
installation by the first half of 2015.
The company has whittled down its exposure to the North Sea
operations, selling a 49 percent stake in its UK fields to
China's Sinopec for $1.5 billion in December.
But the operations in Britain's North Sea contributed to
Talisman's surprise loss. The company said in March it expected
North Sea production of 41,000 to 46,000 barrels of oil
equivalent per day. Now it expects the region to average 34,000
bpoed in 2013.
But Talisman said full-year production would likely be at
the lower end of its forecast range of 375,000 to 395,000 boepd
as unreliable facilities at its UK fields cut output.
The company on Wednesday also cut its outlook for cash flow,
an indicator of its ability to pay for new projects and
drilling. It now expects cash flow of between $2.1 billion and
$2.3 billion for the year, down from its prior expectation of
Talisman said capital spending is expected to come within
the $3 billion target, plus or minus 5 percent.
NET PROFIT PLUNGES
Net income fell 51 percent to $97 million, or 9 cents per
share, in the second quarter.
Excluding items, the company posted a loss of $27 million,
or 3 cents per share. Analysts on average had expected the
company to break even, according to Thomson Reuters I/B/E/S.
Cash flow fell more than 34 percent to $526 million, or 51
cents per share, due mainly to the stake sale to Sinopec.
Production in the quarter averaged 361,000 boepd, down 17
percent from a year earlier.
Shares of Talisman were down 14 Canadian cents to C$11.80 by
early afternoon on the Toronto Stock Exchange. The shares have
dropped 7 percent over the past 12 months, against a 1.1 percent
rise in the exchange's energy index in the same period.