Talisman Energy Sees 1999 Cash Flow Of C$7.50/Shr
NEW YORK -- Talisman Energy Inc. (TLM) expects its cash flow to increase to C$7.50 a share this year and to C$1.5 billion, or C$10.50 a share, in 2000, following its proposed acquisition of Rigel Energy Corp. (T.RJL).
Bob Mitchell, the company's vice-president of operations, told a New York oil and gas investment conference that he expects the Rigel acquisition to add 25 Canadian cents a share next year to what
Talisman's cash flow otherwise would have been.
Mitchell said the company's 2000 capital spending budget, which senior company executives are setting today, is expected to be between C$1.1 billion and C$1.2 billion. He said spending in Canada
will emphasize natural gas drilling.
Mitchell told the conference that Talisman hasn't seen any disruptions to its large natural gas operations in Indonesia during that country's period of political unrest. "It still seems that foreign participation in the oil industry is very welcome," he said.
Mitchell projected that Talisman's share of natural gas production from the Corridor gas project in Sumatra will remain flat this year compared with 1998, but has the potential to more than double over
the next few years depending on the markets. He said the company is about to sign a natural gas sales agreement with Singapore Power, the state-owned electricity company.
In Sudan, Mitchell said that a large crude oil production project, in which Talisman holds a 25% interest currently, has productive capacity of 180,000 barrels a day. He said oil production from the
project at the end of 2000 could be as high as 220,000 b/d. Mithcell also said that Talisman has also recently increased its estimate of proven reserves in Sudan to 800 million barrels from a previous
estiamte of 450 million barrels, following a number of exploration successes.
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