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

To: Tomas who wrote (532)	10/30/1999 9:20:00 PM
From: Tomas	Read Replies (1) \| Respond to of 1713

Talisman Share Price Drop a Short-Term Situation, Analysts Say Calgary, Alberta, Oct. 29 (Bloomberg) -- The Canadian government probably won't impose sanctions on Talisman Energy Inc. for its involvement in an oil project in war-torn Sudan, a company spokesman and analysts said. U.S. Secretary of State Madeleine Albright and Canada's Foreign Affairs Minister Lloyd Axworthy said revenue from the Calgary, Alberta-based company's 25-percent stake in Sudan's Greater Nile Oil Project might be used by the military government to support its role in a civil war, recently suspended by a truce. Axworthy said Canada is sending an envoy to Sudan to see if oil money generated by Talisman might be used to wage war against southern Sudanese rebels. If that's the case, the government could suspend Talisman's export licenses on equipment it uses in the country, or impose sanctions against Sudan, making it illegal for Canadian companies to do business there. ``The market doesn't like uncertainty and the Sudan situation has some investors bothered,' said Terry Peters, an analyst with Griffiths McBurney & Partners in Calgary. ``This is a knee-jerk reaction and it will fade.' Shares of Talisman, Canada's largest independent petroleum company, fell C$0.10 (US$0.7) to C$38.85 in Toronto. The shares fell 12 percent, or C$6.15, this week. Talisman spokesman David Mann said the 33,750 barrels a day of oil the Sudan project contributes to the company's overall production represents 10 percent of the company's cash flow. Mann said the company supported the Canadian government's interest in Sudan and that Chief Executive Jim Buckee will meet Axworthy Tuesday to discuss the situation. ``They're focusing on a fact-finding and peace initiative; sanctions are a last resort,' Mann said. Talisman acquired its interest in the project when it bought Arakis Energy Inc. for C$267 million in October 1998. The oil concession was originally held by Chevron Corp., which gave up its interest in 1992 because of the war. The Sudanese government receives 60 percent of the profits from the projects, while Talisman and its partners share the remaining 40 percent.