2006 in review
In North America, the Company’s focus is on deeper, high deliverability wells in the Rocky Mountain Foothills, as well as multi-horizon plays in the overthrust belt. Talisman has built a substantial high working interest land position supported by Talisman-operated infrastructure.
Industry surveys show that Talisman has added more reserves per successful well than its peers over the past five years. The Company drilled a number of very high deliverability wells again in 2006. Talisman also replaced 142% of its North American natural gas production through drilling and revisions.
The Company announced it is developing a new natural gas area in the Outer Foothills, adding approximately 260,000 acres of land. The Lynx and Palliser Pipelines were completed and Talisman Midstream Operations transported a record 600 mmcf/d in February 2007. In Alaska, Talisman added to its landholdings and currently has approximately one million net acres.
- natural gas production averaged 910 mmcf/d, compared to 915 mmcf/d in 2005;
- liquids production averaged 53,227 bbls/d, compared to 56,304 bbls/d in 2005;
- Talisman disposed of a number of low working interest properties. This lowered the Company’s production by 3,200 boe/d for the year (10.5 mmcf/d of gas and 1,432 bbls/d liquids). The Company also sold a 2% royalty interest in an undeveloped oil sands lease for $108 million. In early 2007, Talisman closed the sale of its indirect Syncrude interest for $477 million;
- Talisman successfully drilled 496 gross natural gas and 194 oil wells;
- exploration and development spending was $2.4 billion, with 90% directed toward natural gas;
- Talisman added 471 bcf of proved natural gas reserves through drilling and revisions. At year-end, the Company had 2.8 tcf of proved natural gas reserves;
- conventional operating costs averaged $6.95/boe, up from $5.87/boe in 2005, mainly due to increased processing, maintenance and power costs;
- Talisman set new production records in its Alberta Foothills (193 mmcf/d) and Bigstone/Wild River (136.7 mmcf/d) regions;
- the Company drilled another successful, deep Paleozoic well and three successful Triassic wells in its core Monkman Area;
- in Appalachia, the Company drilled 33 successful gas wells, including two Trenton Black River wells that came onstream at 34 mmcf/d; and
- Talisman was awarded approximately 851,000 gross acres in the Northwest Territories (50% working interest).
