Profile: Talisman Energy Inc (TLM.TO)
26 Nov 2014
Talisman Energy Inc. (Talisman), incorporated on May 01, 2010, is an oil and gas producers, through a combination of exploration, development and acquisitions. The Company's business activities include exploration, development, production, transportation and marketing of crude oil, natural gas and natural gas liquids. Talisman's three main operating areas are North America, the North Sea and Southeast Asia. During the year ended December 31, 2012, the Company's activities were conducted in North America, the North Sea, Southeast Asia, and Other. The North America segment includes operations in Canada and the United States. The North Sea segment includes operations and exploration activities in the United Kingdom and Norway. The Southeast Asia segment includes operations and exploration activities in Indonesia, Malaysia, Vietnam and Papua New Guinea and operations in Australia/Timor-Leste. The Company also has non-operated production in Algeria, operations and exploration activities in Colombia, and exploration activities in Sierra Leone and the Kurdistan Region of Iraq. On December 17, 2012, Talisman sold a 49% equity interest in its main UK operating subsidiary, Talisman Energy (UK) Limited. In October 2013, Carl Icahn of the United States acquired a 5.948% stake in Talisman Energy Inc. In March 2014, Talisman Energy Inc completed the sale of about 127,000 net acres of its Montney position in northeast British Columbia to Progress Energy Canada Ltd.
During 2012, Talisman's aggregate production was 426 millions barrels per day (mboe/d), comprised of 27 Thousand Barrels per Day (mbbls/d) of oil and liquids and 985 mmcf/d of gas from North America; 42 mbbls/d of oil and liquids and 524 Million Cubic Feet per Day (mmcf/d) of gas from Southeast Asia; 71 mbbls/d of oil and liquids and 31 mmcf/d of gas from the North Sea; and 22 mbbls/d of oil and liquids and 42 mmcf/d of gas from other areas. Approximately 38% of the Company's production is liquids and 62% is natural gas (on a 6 mcf:1 bbl equivalency basis). In 2012, in Southeast Asia, approximately 42% of production was oil-linked gas.
Talisman continues to review options for strategic divestitures and acquisitions that would enable the Company's focus on building liquids and liquids-rich shale projects. Talisman's North America operations are organized into two distinct businesses: Canada and United States. Talisman's Canadian assets are focused in natural gas in British Columbia's Montney play; liquids-rich gas in Alberta's Duvernay play; liquids and gas in the Edson area of Alberta; and conventional oil in the Chauvin area of Alberta/Saskatchewan. Talisman's Montney play in northeast British Columbia provides Talisman with many opportunities at different stages of maturity. Talisman holds approximately 182,000 net acres of land in the Montney.
Talisman's Duvernay play, located in central Alberta, has been identified as a top tier shale play due to its liquids-rich characteristics. As od December 31,2012, the Company holds interests in 347,000 net acres of land in the Duvernay. During 2012, Talisman drilled five horizontal pilot wells, with four of these wells onstream. as at December 31, 2012 Talisman's Lorraine/Utica lands are located in the Quebec lowlands along the St. Lawrence River, where the Company holds 753,000 net acres. Talisman's interests in the Marcellus shale play are located in New York and Pennsylvania. Talisman's interests in the Eagle Ford shale play are located in south Texas, where the Company holds approximately 74,000 net acres of land.
Talisman's conventional assets in North America are primarily located in the tight gas in the Outer Foothills in Alberta; tight oil and gas in the Greater Edson area of Alberta; deep gas in the foothills of Monkman, British Columbia and Alberta Foothills; and oil operations in Alberta/Saskatchewan in the Chauvin and Shaunavon fields. On December 17, the Company completed a joint venture transaction with Addax Petroleum UK Limited, an indirect wholly owned subsidiary of China Petrochemical Corporation (Sinopec), whereby Sinopec acquired a 49% equity interest in Talisman's main UK operating subsidiary, Talisman Energy (UK) Limited.
TSEUK's principal UK operating areas include Claymore, Piper (including Tweedsmuir), Tartan, Ross/Blake, Buchan/Hannay, Enoch/Blane, Quad 16, Montrose/Arbroath, Fulmar, Auk, and Clyde. These principal operating areas encompass a total of 42 fields. TSEUK's working interests range from 5% to 100%, as well as in a number of production facilities and pipelines, including a 80% interest in the Flotta Terminal. Thirty-two fields are operated (with TSEUK's interests ranging from 25% to 100%) and 10 are non-operated (with TSEUK's interests ranging from 5% to 53%). In 2012, the UK contributed 52 mboe/d, or 12%, of the Company's worldwide production. The primary focus in the UK is oil, with oil and liquids contributing to 98% of TSEUK's UK production. At year-end 2012, TSEUK operated approximately 97% of its UK production.
During 2012, TSEUK drilled and completed a production well at Clyde Northern Terrace. During 2012, production in Norway averaged 24 mboe/d across 9 fields, accounting for approximately 6% of the Company's production worldwide. The primary focus in Norway is oil, with oil and liquids contributing to 83% of Talisman's Norway production. Norway, Talisman operates the Blane, Gyda, Yme, Varg and Rev fields with interests ranging from 18% to 70%. It also holds interests from 0.5% to 34% in a number of non-operated fields with associated production facilities and intrafield pipelines including Brage, Veslefrikk, Brynhild and Tambar East. Talisman has an interest in two blocks, Kurdamir and Topkhana, in the Kurdistan Region of Iraq covering in excess of 119,000 acres. During 2012, Talisman finished drilling three wells in its acreage, Lewino-1G2, Rogity-1, and Szymkowo-1.
Talisman has interests in Indonesia, Malaysia, Vietnam, Australia/Timor Leste and Papua New Guinea. During 2012, Southeast Asia production averaged 128.6 mboe/d, which accounted for 30% of the Company's production globally. As of December 31, 2012, Talisman operated approximately 37% of its Southeast Asia production. Talisman's Indonesian assets include onshore interests at Corridor, Ogan Komering and Jambi Merang as well as offshore interests in Southeast Sumatra, Tangguh and exploration acreage including the Andaman III PSC. Talisman also has an associated 6% interest in the Grissik-to-Duri pipeline and the Grissik-to-Singapore pipeline. Talisman has a 36% non-operated interest in all but two of the fields in the Corridor PSC and field production facilities. Talisman is also working towards exiting its exploration blocks in the South Makassar Basin. During 2012, net production from the Corridor PSC was approximately 57.9 mboe/d. Corridor production accounted for approximately 45% of Talisman's Southeast Asia production. During2012, Jambi Merang performance exceeded plan expectations with production averaging 6.5 mboe/d for the year.
Talisman holds a 41% operated interest in Block PM-3 CAA PSC between Malaysia and Vietnam and associated production facilities. In addition, Talisman holds a 33% interest in Block 46-Cai Nuoc adjacent to PM-3 CAA and a 60% interest in each of Block PM-305 and Block PM-314. In Block PM-3 CAA, Talisman is operating facilities referred to as the Southern Fields and the Northern Fields. Talisman also holds a 70% working interest in exploration licences for SB-309 and SB-310, acreages offshore Sabah in east Malaysia. During 2012, production in Malaysia averaged 36.8 mboe/d, which accounted for approximately 29% of Talisman's total Southeast Asia production. During 2012, six development wells were drilled in Malaysia, one of which was a water injector.
Talisman holds a 30% interest in Block 46/02 and in the Truong Son Joint Operating Company (JOC) which operates the Block. The Company also holds a 49% operated interest in Blocks 133 and 134, 40% in Blocks 135 and 136, and 40% in Block 05-2/10 in the Nam Con Son Basin. During 2012, Talisman reached a farm-in agreement with Mitra Energy Limited to acquire a 35% interest in Blocks 45 and 46/07 adjacent to PM-3 CAA in the Malay-Tho Chu Basin. 2012, Vietnam production averaged 1.9 mbbls/d, with 1.3 mbbls/d from Block 46/02, accounting for approximately 1% of Southeast Asia production. Talisman holds non-operated interests in the Laminaria and Corallina fields offshore Australia, and in the Kitan field in JPDA 06-105. Production in Australia/Timor-Leste averaged 11.7 mbbls/d in 2012, accounting for approximately 9% of Talisman's total Southeast Asia production.
Talisman holds a 35% non-operated interest in Block 405a with Algeria's national oil company. Through its participation in Block 405a, Talisman holds a 35% interest in the Greater Menzel Lejmat North fields and the Menzel Lejmat Southeast field, a 2% interest in the unitized Ourhoud field, and a 9% interest in the unitized EMK field. Talisman has signed a Framework Agreement for the joint construction and operation of shared process facilities for the EMK field plus four other fields located in Block 208.
Talisman Energy Inc
888 - 3rd Street S.W.
CALGARY AB T2P 5C5