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

To: Tomas who wrote (608)	11/26/1999 6:39:00 PM
From: Tomas	Read Replies (2) \| Respond to of 1713

Canada envoy to start tricky Sudan probe next week By David Ljunggren OTTAWA, Nov 26 (Reuters) - A Canadian envoy charged with probing whether Sudan's oil industry is linked to human rights abuses said on Friday he planned to fly to Khartoum next week and added that he was sure his report would cause controversy. John Harker told Reuters his team of four or five people would probably leave Ottawa next Tuesday to spend between three and four weeks in Sudan. Harker was asked to carry out the investigation by Canadian Foreign Minister Lloyd Axworthy, who has expressed alarm at allegations the oil industry in Sudan was responsible for widespread rights abuses and possibly linked to slavery. Axworthy said he will study Harker's report closely before deciding whether to recommend sanctions be imposed on Canadian oil firm Talisman Energy Inc. (Toronto:TLM.TO - news), which owns a 25 percent stake in a major southern Sudan oil development. ``I assumed at the very instant of being asked to undertake this challenge, long before it became such a hot public political issue, that the very act of trying to shed light on a complex conflict situation will always displease some people,' Harker said in an interview. ``So I had no illusions about the fact there will be those who condemn me and my report -- that was always going to be the case. I hope I'll be able to live with my finding, and as I'm meant to reproduce fact and not fiction, that's really what matters.' Axworthy, U.S. Secretary of State Madeleine Albright and church groups are also worried that Khartoum is using oil revenues to fund a long-running war with mainly Christian rebels in the south of the country. Harker, whose trip has been the subject of long negotiations between Canada and Sudan, said he had no reason to believe that Khartoum would try to put curbs on his trip. ``The proof of that will be seen and demonstrable only when I'm there. It's certainly my determination to see everyone I have been advised I ought to see and -- from my own analysis -- decided I'd like to see,' he said. ``If I can't, then that will be duly reflected and weighed, but I've got no reason at this time to assume there will be any impediment.' Talisman's shares fell by more than 12 percent after Axworthy first made his sanctions threat last month. Chief Executive Jim Buckee took analysts to Sudan last week and told them the firm was ``a force for good' and could help end the civil war. In a letter to shareholders this week he welcomed Harker's mission, saying ``a comprehensive and dispassionate review' of events in Sudan was needed. Buckee also expressed confidence that Canada would not impose punitive measures on his firm. ``In the past, full economic sanctions by Canada have only occurred with the endorsement of an international organization to which Canada belongs and not as a unilateral Canadian action,' he wrote. ``Given the fact that several European countries such as France and Germany have recently broadened and deepened their bilateral relationships with Sudan, we think it unlikely that such an endorsement will be forthcoming.' Foreign Affairs spokesman Sean Rowan said Axworthy was keeping his options open. ``The minister has stated quite clearly he will look at what Mr. Harker has to say when he gets back. If the link between human rights abuses and the oil extraction industry is made, then Canada will contemplate further actions,' he said. biz.yahoo.com

To: Tomas who wrote (608)	11/28/1999 5:24:00 PM
From: Tomas	Read Replies (2) \| Respond to of 1713

Talisman would gain from forced Sudan sale. Analysts praise project Carol Howes Financial Post, November 27 CALGARY - Talisman Energy Inc. stands to gain a hefty profit if it is forced to sell its Sudanese oil assets should the federal government impose sanctions against the war-torn African country, says a leading oil and gas analyst. Martin Molyneaux, research director of FirstEnergy Capital Corp., said in a report released this week that Talisman's project would be worth between $10.50 and $13.50 a share if put up for sale. "Not such a bad worst-case scenerio considering Talisman only invested approximately $5.60 per share," for its 25% stake in the Greater Nile Oil Project, said Mr. Molyneaux. Analysts have said that TotalFina SA of France, as well as ENI SpA of Italy, are interested in the $800-million oil project. Royal Dutch/ Shell Group is also rumoured to be back in the capital of Khartoum looking for investment opportunities. Mr. Molyneaux is one of 20 analysts who recently returned from a tour of the controversial project that has been criticized for providing new government revenues that could exacerbate a 16-year civil war. In his report, Mr. Molyneaux praised the potential of the project, saying if Talisman is allowed to continue operating, it "could very well be the most profitable oil production of any publicly traded oil company in Canada." The criticism has led Talisman to downplay the importance of the investment in Sudan in a letter mailed to shareholders this week. The investment in Sudan represents less that 10% of expected production volumes for the Calgary-based oil and gas company next year. "We are very ethusiastic with regard to the upside potential for this area," Mr. Molyneaux said in his report. He said it's apparent that current production of around 155,000 barrels per day is only the beginning for the oil and pipeline facilities owned by Talisman and its partners -- Chinese, Malaysian and Sudanese state oil companies. Like Mr. Molyneaux, a number of other analysts who toured the facilities at Talisman's invitation have also strongly recommended the stock, claiming Western reports of human rights abuses are exaggerated. Robert Plexman, an analyst for CIBC World Markets Inc. in Toronto was one of the first off the mark to file a glowing dispatch from Sudan. He put a target price on Talisman's shares of $69 in 12 months. nationalpost.com