reserves
Talisman replaced 116% of production through drilling and revisions to proved reserves in 2006 and increased its total proved reserves by 2% to 1.67 billion boe. Net of royalties, the Company had 1.4 billion boe of proved reserves (up 4%).
At year-end, Talisman had 5.4 tcf of proved natural gas reserves and 767 mmbbls of proved oil and liquids reserves.
The Company added a record 471 bcf of proved natural gas reserves in North America, replacing 142% of production through drilling and revisions. Internationally, Talisman replaced 123% of liquids production organically.
| Talisman proved reserves | Oil & NGL (mmbbls) | Natural Gas (bcf) | BOE (mm) |
|---|---|---|---|
| December 31, 2005 | 736 | 5,417 | 1,639 |
| Discoveries, extensions and additions | 80 | 564 | 174 |
| Net acquisitions | 11 | (61) | 1 |
| Revisions | 34 | (34) | 28 |
| Production | (94) | (483) | (175) |
| Total Proved, December 31, 2006 | 767 | 5,403 | 1,667 |
| Total Probable, December 31, 2006 | 544 | 2,650 | 986 |
At year-end, Talisman had a reserves life index of 9.5 years for proved reserves and 15.2 years for proved and probable reserves.
Approximately 38% of the Company’s total proved reserves are in North America, with the North Sea accounting for 29% and Southeast Asia 27%. At year-end, the Company had 986 mmboe of probable reserves, which comprise a large part of Talisman’s development inventory.
Exploration and development spending during 2006 totaled $4.4 billion, excluding Syncrude and Midstream expenditures. Net of acquisitions and divestitures, capital spending was $3.7 billion.
Talisman has an internal qualified reserves engineer who evaluates all of the Company’s reserves estimates. In addition, approximately 86% of Talisman’s proved reserves have been audited by outside engineering firms over the past four years.
