FIELD ACTIVITIES / Talisman adds gas production
Talisman Adds Foothills Natural Gas Production
CALGARY, Oct. 13 /CNW/ - Talisman Energy Inc. today announced the
addition of new gas volumes in the Lovett River and Cordel areas of the
Central Alberta Foothills and the commissioning of the Lovett River pipeline.
The Company has also announced another new gas discovery in the Lovett River
area, which tested at 17.4 mmcf/d.
''With domestic gas prices expected to be well over $2.00/mcf this
winter, I'm pleased with Talisman's technical and commercial success in the
Alberta Foothills,'' said Dr. Jim Buckee, President & Chief Executive Officer.
''Our last 14 wells in the area have tested at average initial rates of over
10 mmcf/d per well.''
Completed under budget and one month ahead of schedule, the Lovett River
pipeline project gathers gas from the Lovett River area for processing at the
Hanlan Robb Gas Plant. The project started up in September and initial
production from the Talisman working interest wells tied into the pipeline was
34 mmcf/d net to Talisman. The Lovett River pipeline system will provide a key
transportation link in the continued development of Talisman's land holdings
in the Central Foothills area.
Completion of the pipeline project and the tie in of the recently drilled
Cordel 14-13-43-17W5 well more than doubles Talisman's gas sales from the
Central Alberta Foothills area, from 24 mmcf/d year-to-date to 57 mmcf/d
currently. Talisman expects to produce at an average rate of over 65 mmcf/d
from the area in 1999 as more wells are drilled and additional infrastructure
is commissioned.
In addition, the Talisman Lovett River 3-1-47-19W5 (TLM 100%) step out
well flowed at test rates of 17.4 mmcf/d. The well was drilled to a depth of
4,340 metres, including a 716 metre horizontal open hole section in the Turner
Valley formation. The well is expected to be tied in to the Lovett River
pipeline system and producing before the end of the month.
A total of 10 wells have been drilled this year with a 90% success rate
and an average test rate of 10.5 mmcf/d. Two additional Lovett River wells and
one Cordel well are planned prior to year end. In Lovett River, a horizontal
re-entry of an existing well at 10-2-47-19W5 (TLM 27.5%) is currently in
progress and a new location at 3-36-46-19W5 (TLM 100%) will be spudded before
the end of October. Both wells will be tied into the Lovett River pipeline
system.
In Cordel, a follow up to the recent 21 mmcf/d Turner Valley discovery at
14-13-43-17W5 is currently being drilled at 13-13-43-17W5. Talisman has a
100% working interest in both wells. Talisman will spend an estimated $75
million in the Alberta Foothills this year.
Background
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The Lovett River pipeline system consists of a 21 km, 10 inch mainline
and a 15 km, 6 inch/8 inch gathering system, which currently transports gas
from five Talisman working interest wells in the Lovett River area to the
Hanlan Robb Gas Plant for processing. Pipeline construction was completed in
August 1998. The project included a shared line for sweet gas production and
fuel gas, which reduced construction costs and minimized environmental
disturbances. Talisman has a 38.5 % working interest in the mainline
pipeline, which provides a net capacity of 40 mmcf/d. Talisman's average
working interest in the gathering system is 57.4%.
Talisman is also participating in three additional significant pipeline
projects in the Central Alberta Foothills as part of its overall development
strategy for the area.
Talisman Energy Inc. is a Canadian-based, international upstream oil and
gas producer with operations in Canada, the North Sea, Indonesia and Sudan.
The Company is also conducting exploration in Algeria and Trinidad. Talisman's
shares are listed on the Toronto, Montreal and Vancouver stock exchanges in
Canada and the New York Stock Exchange in the United States under the symbol
TLM.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release contain forward-looking
statements including expectations of future production and capital
expenditures. Information concerning reserves may also be deemed to be
forward-looking statements as such estimates involve the implied assessment
that the resources described can be profitably produced in future. These
statements are based on current expectations that involve a number of risks
and uncertainties, which could cause actual results to differ from those
anticipated. These risks include, but are not limited to: the background
risks of the oil and gas industry (e.g., operational risks in development,
exploration and production; potential delays or changes in plans with respect
to exploration or development projects or capital expenditures; the
uncertainty of reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses, and health, safety and
environmental risks), risks in conducting foreign operations (e.g. political
and fiscal instability), price and exchange rate fluctuation and uncertainties
resulting from potential delays or changes in plans with respect to
exploration or development projects or capital expenditures. Additional
information on these and other factors which could affect Talisman's operation
or financial results are included in Talisman's Annual Report under the
headings ''Management's Discussion and Analysis - Sensitivities,'' ''Risks and
Uncertainties,'' and ''-Outlook,'' and in Talisman's other reports on file
with Canadian securities regulatory authorities and the U.S. Securities and
Exchange Commission.
-- This release is available on Talisman's Internet Web Site:
WWW.TALISMAN-ENERGY.COM --
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For further information: David Mann, Manager, Investor Relations &
Corporate Communications, Talisman Energy Inc., (403) 237-1196, Fax: (403)
237-1210 E-mail: tlm@talisman-energy.com
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