North Africa
In Algeria, Talisman has a 35% non-operated interest in the Greater MLN project in Block 405a, located in eastern Algeria. The Company also has a 2% interest in the unitized Ourhoud field and a 9% interest in the EMK field, both in Algeria, and non-operated interests ranging from 5-10% in Tunisia. Liquids production in 2007 averaged 14,214 bbls/d, an increase of 8% over 2006.
The Greater MLN Phase 2 project was completed in 2007 with full field gas injection commissioning at the end of the year. The project will provide pressure maintenance to additional MLN reservoirs. The Company also signed a Memorandum of Understanding for the joint construction and operation of shared process facilities for the EMK field plus four other fields located in adjacent Blocks 208 and 212.
In North Africa, exploration and development spending in 2007 totaled $38 million. Talisman participated in drilling a total of seven development wells in Algeria and Tunisia and five exploration wells in Tunisia, four of which were successful. In 2008, spending is expected to be about $33 million, which includes drilling up to seven exploration wells, 12 development wells and engineering for the EMK project.
Trinidad and Tobago
Talisman has a 25% non-operated interest in the Greater Angostura project, an oil and gas development in Block 2(c) offshore Trinidad and Tobago. Development drilling continued in 2007 with three wells. Liquids production in 2007 averaged 6,439 bbls/d, compared to 8,366 bbls/d in 2006, due in part to equipment failure, which reduced throughput in early 2007.
Exploration and development spending in 2007 totaled $98 million primarily for development expenditures in Block 2(c) and exploration drilling in the onshore Eastern Block. In 2008, spending is expected to be $23 million, primarily for the commencement of the Phase 2 Angostura gas development project.
Colombia
Talisman has non-operated interests in a number of blocks in Colombia. In 2007, the Company received formal approval for interests in the El Porton, Los Ocarros and El Eden blocks in the Llanos Basin. Capital spending in 2008 is expected to be $46 million to acquire seismic and prepare for drilling later in the year.
Peru
In 2007, Talisman acquired operated interests in Blocks 64 and 103 in Peru and now holds 50% and 40% interests, respectively. The Company also holds a 70% operated interest in the adjacent Block 101, as well as a 55% operated interest in Block 134, which was awarded in the 2007 Peru Bid Round. Talisman expects that capital spending in 2008 will be approximately $15 million, primarily to acquire seismic and to commence drilling one exploration well.
Qatar
Talisman holds a 100% interest in Block 10 offshore Qatar. The Company expects that capital spending in 2008 will be approximately $19 million and has applied for a one year extension of the First Exploration Period. One exploration well will be drilled in 2008, fulfilling the final exploration well commitment in Block 10.
