Talisman Confirms Major North Sea Asset Deals

abarrelfullabarrelfull wrote on 11 Jul 2012 09:13

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FEBRUARY 9, 2000

Talisman Energy Inc. today announced that its wholly owned subsidiary Talisman Energy (UK) Limited and affiliates have reached agreement on a series of asset transactions in the Central North Sea involving Elf Exploration UK PLC., ARCO British Limited and Texaco Britain Limited.

The transactions include Talisman acquiring interests in the Claymore, Piper, Saltire, Chanter, Iona and Scapa producing fields, as well as the Flotta terminal and related pipelines and undeveloped acreage. The Piper and Claymore field licenses were awarded in the UK Fourth Licensing Round, and collectively these fields have been referred to as the Fourth Round Assets (FRA). Talisman will become operator of these fields, subject only to regulatory approvals including the UK Secretary of State.

These transactions significantly expand Talisman's presence in the Central North Sea and encompass a number of asset exchanges, purchases and disposals. These fields have the potential to produce to 2020 and beyond with the development and cost saving opportunities already identified.

"These transactions place Talisman in a strong position in the highly prospective Outer Moray Firth area of the Central North Sea," said Dr. Jim Buckee, President and Chief Executive Officer. "With estimated gross remaining recoverable reserves in excess of 300 mmbbls, the FRA provides an outstanding opportunity to deliver significant incremental value for Talisman shareholders. This new core area brings low operating costs, infrastructure, operatorship, development potential and exploration upside."

Talisman expects to add approximately 43,000 bbls/d of oil and liquids (net of non-core asset dispositions) from these transactions in 2000. The acquisition cost net of disposition
proceeds is approximately C$583 million, or C$5.29/bbl for 110 mmbbls of proved reserves (C$3.86/bbl including probable reserves of 40 mmbls).

  • The Elf/ARCO transactions will be effective December 31, 1999.
  • The Texaco transaction will be effective February 1, 2000.
  • Closing of the transactions is expected to occur in May 2000, subject to receipt of regulatory approvals.

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