Talisman Energy and Seneca Resources Announce Appalachian Gas Joint Venture
BUFFALO, N.Y., Jan. 22 /PRNewswire/ -- Talisman Energy, Inc. of Calgary (NYSE: TLM; TSE) and Seneca Resources Corporation, the exploration and production subsidiary of National Fuel Gas Company (NYSE: NFG - news) today announced an exploration joint venture in the Appalachian Basin of the United States.
``This is a tremendous opportunity for the two companies to work together in an under-explored basin,'' said Dr. Jim Buckee, President and Chief Executive Officer of Talisman. ``Talisman has been extremely successful working similar plays in Ontario where we have spent C$60 million and drilled over 90 wells in the past three years, with a 91% success rate. We see considerable potential to develop this region into a core gas area.*''
``With recent deep gas discoveries, Appalachia has the potential to become a major producing area, with ample infrastructure, in the best gas market in North America,*'' said James Beck, President, Seneca Resources. ``This is a mutually beneficial agreement, with the two companies providing technical and operating expertise to jointly exploit Seneca's mineral holdings in the area.''
The five-year agreement between Seneca and Talisman includes nearly one million acres of land in western New York and northwest Pennsylvania. This is one of the oldest oil and gas producing regions in North America with 150,000 wells in the area, most of which are low productivity and shallow. The companies will be targeting Ordovician gas prospects at depths of 6,500 to 11,000 feet. * The joint venture parties are conducting a detailed review of existing seismic with first drilling expected later this year.* Talisman will earn a 55% interest in wells drilled while Seneca maintains a 45% interest.
Seneca will also participate in selected opportunities on Talisman acreage in western Canada.* The first step is a deep exploration test in the Monkman area of the northern British Columbia foothills. Other opportunities are under review.
Talisman Energy Inc. is the largest independent Canadian oil and gas producer with operations in Canada, the North Sea, Indonesia and Sudan. Talisman is also conducting exploration in Algeria, Trinidad and Columbia. Talisman has adopted the International Code of Ethics for Canadian Business and is committed to maintaining high standards of excellence in corporate citizenship and social responsibility wherever it does business. The Company's shares are listed on The Toronto Stock Exchange in Canada and the New York Stock Exchange in the United States under the symbol TLM.
Seneca Resources Corporation is a subsidiary of National Fuel Gas Company (NYSE: NFG - news). National Fuel is an integrated energy company with US$3.5 billion in assets comprised of the following six operating segments: Utility, Pipeline and Storage, Exploration and Production, International, Energy Marketing and Timber. Seneca Resources Corporation, headquartered in Houston, Texas, explores for and produces natural gas and oil in the lower 48 States, the Gulf of Mexico and Canada. Additional information about National Fuel is available through its investor information service at 1-800-334-2188 or on its Internet web site at nationalfuelgas.com.
FORWARD-LOOKING STATEMENTS
Statements in this press release may contain forward-looking statements including expectations of future cash flow, 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.
SOURCE: Talisman Energy, Inc. and Seneca Resources Corporation |
