Good reuters article here on TLM
AKSEF
TLM.TO
1 5/8
28.30
+1/4
+1.05
delayed 20 mins - disclaimer
Friday September 4, 5:41 pm Eastern Time
Talisman stock climbs 26 percent in week
CALGARY, Sept 4 (Reuters) - Talisman Energy Inc. stock has climbed by nearly 26 percent since hitting last week's low amid a broad rise in Canadian energy shares and increasing investor comfort its Sudan oil project, analysts said.
Calgary-based Talisman, whose stock price slid after announcing a US$220-million takeover of Arakis Energy Corp. (Nasdaq:AKSEF - news) in August, was up C$1.05 in Toronto on Friday to C$28.30. Earlier in the session the stock had climbed to a high of C$29.
That compares to last week's low of C$22.50, a price for the Canadian and international oil and gas producer that surprised analysts.
''I don't think anybody expected the stock to get that low,'' said Doug Gowland, analyst with First Marathon in Toronto. ''It happened because of a number of negatives converging at the same time in the market.''
Those included the U.S. bombing of a suspected chemical weapons ingredient factory in Sudan days after Talisman announced its intention to acquire Arakis and its Sudanese oil interests and a major downturn in stock markets, especially for energy companies.
But the Toronto Stock Exchange's oil and gas index has climbed by nearly 10 percent since Tuesday as oil prices have gained ground.
Gowland said major investors, following Talisman Chief Executive Jim Buckee's efforts to sell the benefits of the US$1.4 billion Sudan oil project and his firm's ability to handle its risks, were becoming more confident in recent days.
''It's a bet on Jim Buckee's judgement,'' he said.
He also said Talisman's advance to Arakis of nearly US$22 million to meet its share of project costs as spelled out under the acquisition agreement showed Talisman's commitment to closing the deal.
Under the deal, Talisman is offering to swap one of its shares for every 10 Arakis shares, with the aim of gaining Arakis's 25 percent interest in the oil concession in southern Sudan and 930-mile (1,500 km) pipeline to the Red Sea.
Buckee has described the project, which is scheduled to start pumping 150,000 barrels a day of oil by the end of next year, as representing the opening of ''a new hydrocarbon province.''
Other participants in the play include China National Petroleum Corp., Malaysia state oil company Petronas and the Sudan government.
Arakis had for three years attempted several financing initiatives aimed at staying in the project before striking the deal with Talisman. The takeover is slated to be completed in early April.
($1=$1.53 Canadian)
--------------------------------------------------------------------------------
|
