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

To: Edward M. Zettlemoyer who wrote (543)	11/5/1999 8:08:00 AM
From: Tomas	Read Replies (1) \| Respond to of 1713

Talisman cash flow boosted by oil prices and production - Surpasses Imperial as Canada's biggest producer Financial Post, November 5 Claudia Cattaneo CALGARY - Talisman Energy Inc., the Canadian oil and gas company under fire for investing in Sudan, yesterday reported a 123% jump in cash flow for the third quarter on higher commodity prices and production volumes. The Calgary-based firm, Canada's largest oil and gas producer, said cash flow was $280.8-million ($2.30 a share) for the period, up from $126.1-million ($1.15). Earnings jumped to $60.2-million (45½), from a loss of $32.8 million (30½) last year. The company said current production has grown to more than 370,000 barrels of oil equivalent daily, which puts it ahead of Imperial Oil Ltd. as the country's largest producer. Last year, Talisman averaged 261,000 barrels of oil equivalent daily in the third quarter. The increase comes from new sources such as the acquisition of Rigel Energy Corp. for $1.2-billion effective Sept. 23, which pushed up natural gas volumes, and the start up of oil production from Sudan's Greater Nile Oil Project, in which the company has a 25% stake. The company said oil and gas prices in the period that were 67% higher than last year, thanks to the recovery in global oil prices and higher Canadian natural gas prices. "We now expect 1999 cash flow to comfortably exceed $1-billion," said Jim Buckee, Talisman president and chief executive officer. Mr. Buckee met this week with Lloyd Axworthy, the foreign affairs minister, to discuss new foreign policy initiatives toward the African country. Canada is sending a mission to Sudan, which is struggling with a 16-year civil war, to verify allegations of human rights abuses and could impose sanctions if it finds oil revenues are fueling the war. Martin Molyneaux, research director at FirstEnergy Capital Corp. in Calgary, said Talisman is realizing surprisingly high product netbacks from Sudan. At $19.49 a barrel, they're the highest for the whole company. (Product netbacks are the difference between the sale price of a barrel of oil, or $30.89 for Sudan oil, and royalties and operating costs, which were $6.63 and $4.77 a barrel for Sudan oil, respectively). Talisman also produces oil and gas in Canada, the North Sea, Indonesia, and explores for oil in Algeria and Trinidad.

To: Edward M. Zettlemoyer who wrote (543)	11/9/1999 11:25:00 AM
From: Tomas	Read Replies (1) \| Respond to of 1713

Talisman: Street consensus: C$1.61, High estimate: $3.75, High roller: Frank Bracken, Prudential Securities Mr. Bracken said three factors account for why his estimates are a whopping 72 cents above the next highest analyst. First, his price outlook for gas is higher than the rest of the Street. Second, unlike other analysts, Mr. Bracken has not stripped out the gains that Talisman will make on asset sales next year, which he estimates at $75-million. Talisman sells assets for profit every year, he said, so extraordinary gains become ordinary. "This company has an incredible track record of delivering on that activity. They buy stuff cheap and they sell it expensive," he said. Third, Mr. Bracken has put together a separate earnings statement for each country in which Talisman operates. He says this exercise allows him to pick up some subtleties other analysts might not notice. Globe & Mail, November 9