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Gold/Mining/Energy : TLM.TSE Talisman Energy -- Ignore unavailable to you. Want to Upgrade?

To: Edward M. Zettlemoyer who wrote (348)	7/6/1999 12:36:00 AM
From: John Sladek	Read Replies (2) \| Respond to of 1713

Most of its capital spending, squeezed early this year as oil prices foundered and constrained cash flow, had been earmarked for its Ross and Orion oil fields in the North Sea and the $1.4 billion Sudan project, slated to start delivering crude in September. Ross, in which Talisman holds a 51.99 percent interest, started production after a number of delays in April. Its 87.5 percent owned Orion field, meanwhile, is slated to start pumping oil during the fourth quarter. Talisman expects to produce 152,000 barrels of oil and 850 million cubic feet of gas a day this year, up from 147,000 barrels of oil and 748 million cubic feet of gas in 1998. ''They are (moving from being) cash consumers to cash generators,'' Peters & Co. Ltd. analyst Craig Langpap said. ''Let's be honest, these guys were spending money on an oil project when it wasn't terribly popular -- between Ross and Sudan -- now they can start turning their guns toward their inventory here in Canada.'' It recently added to Canadian prospects with a C$90 million deal to buy Calgary-based Highridge Exploration Ltd. (Toronto:HRE.TO - news) Talisman Chief Executive Jim Buckee said on Monday his company was now mulling an increase in capital spending from its earlier budget of C$900 million, which was to include C$200-million worth of asset sales. ''We've got a number of things on the run, and I suppose we are looking at a number of options. Our regular corporate spending, we might increase a little bit,'' said Buckee, who has expressed interest in examining rival Rigel Energy Corp. (Toronto:RJL.TO - news), which is currently on the auction block. That would coincide with a big boost in its projected 1999 cash flow to at least C$850 million or C$7.15 a share from the earlier C$700 million or $5.88 a share outlook, he said. Full Story: biz.yahoo.com