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

To: Tomas who wrote (579)	11/19/1999 7:27:00 AM
From: Tomas	Read Replies (1) \| Respond to of 1713

Talisman head mounts defence of Sudan project - Globe & Mail, Nov.19 - Buckee hires PR giant Hill and Knowlton, says controversy has depressed stock STEVEN CHASE Alberta Bureau Friday, November 19, 1999 Calgary -- The president of Talisman Energy Inc. fired back at critics yesterday, saying controversy over its Sudan operation has depressed share prices by up to $10 and spurred him to hire public relations giant Hill and Knowlton Inc. to defend the company. Jim Buckee, speaking during a stopover in London after an analysts' tour of Talisman's $735-million Sudan project, said threats by Ontario teachers to push their pension fund to sell its $184-million stake in the company are based on misinformation about the African nation. "There is very partisan reporting of issues and a co-ordinated attack, which doesn't necessarily represent the truth." While evidence is slim that a divestment campaign to dump Talisman stock is working, Mr. Buckee acknowledged the strain of the controversy is taking its toll and has major investors on alert. "I think they are watching carefully here." He estimated that Calgary-based Talisman's stock price currently contains none of the value of the Sudanese operation, which is worth about $10 in his estimation. He also said the effort of defending an operation that comprises only 15 per cent of the company is heavy. "It takes up more time than it should . . . I think it's probably distressing for quite a lot of Talisman folk." Nevertheless, Mr. Buckee reiterated his company's strong commitment to the Sudanese project, which is developing lucrative oil fields that offer estimated returns on investment of up to 25 per cent for the company. Still, he said the company has decided it needs help and has enlisted Hill and Knowlton to help lobby Ottawa and mount a defence in the media. "We need to get somebody to start writing letters and things like that because we have better things to do. Mr. Buckee said Hill and Knowlton's offices offer "ability, relations and contacts with other elements of the government" to help protect its interests. "What we want them to do is see where our allies lie. . . . We don't think we are doing a bad thing." He warned other Canadian companies to take notice of the way Talisman has been singled out arbitrarily. Ottawa said in late October it would consider sanctions if it finds evidence Talisman's investment is helping the local government buy arms to fight a civil war. "Canadian business needs to take note," he says. "Sudan is not the most perfect place, but geez, look at Angola. There is lots of other nasty places. Why us? Why Sudan?" Mr. Buckee blasted as hearsay an October United Nations report that alleged there was a forced clearing of Sudanese living near the oil fields to make way for the petroleum development. He said the report relied on other accounts of such actions, rather than verifying it first-hand. Mr. Buckee says there are few permanent settlements near the oil field. He said he hopes a monitor being sent by Ottawa to investigate Sudan will be more evenhanded. Asked to estimate the value of Talisman's expenditures in Sudan that are helping civilians, he couldn't name a figure. But he pointed out the company has drilled 55 water wells at about $1-million each, adding these will benefit locals and at least half were not necessary for the oil project. Mr. Buckee says he thinks he has come up with a solution to prove to critics the Sudanese government is not buying more arms with oil revenue it is earning from the project. He has suggested to Sudan it allow the International Monetary Fund to monitor its defence spending to see if it increases. He said Sudanese officials welcomed the idea. Talisman shares lost $1 yesterday to close at $40 on the Toronto Stock Exchange. That's down from a 52-week high of $49.15 about two months ago, before the Sudanese oil pipeline was attacked by rebels and Ottawa and the United States began scrutinizing the investment more closely. Another key Talisman shareholder, Caisse de d‚p“t et placement du Qu‚bec, said yesterday it is "reviewing the situation," on the recent controversy over the Sudan operations.