Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Tomas who wrote (1002)	8/15/2000 11:57:12 AM
From: Tomas	Read Replies (1) \| Respond to of 1713

Talisman hikes spending - Calgary Herald, August 15 Natural gas prices spark boost in Canadian activity By Stephen Ewart Talisman Energy Inc., Canada's largest overseas oil producer, will increase spending on domestic projects by 23 per cent over the rest of the year largely to take advantage of North America's suddenly lucrative natural gas market. The likelihood that gas prices in particular will remain strong into the foreseeable future prompted it to boost spending by $118 million to pursue exploration and development in Western Canada, Talisman said. "As some of our international projects come to successful completion and their demands for cash reduce, we can profitably step up activity in Canada," chief executive Jim Buckee said in a statement Monday. Talisman, which has a strategy of increasing oil production internationally and gas production domestically, said it will now spend $641 million this year in Canada. Those extra funds are expected to boost production by 5,000 to 6,000 barrels of oil equivalent per day in 2001. Industry analysts said the moves help Talisman balance spending in its core operating areas after much of its focus in the past year was aimed at increasing production in the North Sea. "There is some equalizing of their spending," said Steve Calderwood, an oil analyst at investment firm Salman Partners in Calgary. "The amount of new money isn't all that great given the size of Talisman's overall budget but the fact it's all in Canada and, mostly for gas, is significant." Talisman will have more than $1.6 billion this year in capital spending in Canada, the North Sea, Indonesia and Sudan. If benchmark crude oil prices average $28 US per barrel this year and production hits a target of 415,000 barrels of oil equivalent a day, Talisman expects to generate almost $2.3 billion in cash flow this year. Cash flow is a key indicator of a company's ability to fund future projects. Talisman said a significant portion of increased spending will be directed at deeper gas targets around the Peace River Arch, West Central Plains, the Deep Basin and Rocky Mountain Foothills. "We are one of the leading North American deep gas companies, with the land base, technical skills and financial strength to grow our large existing gas portfolio," Buckee said. Talisman shares were up $1.10 to $50 Monday on the Toronto Stock Exchange. It is the first time since June that Talisman has closed at $50 or higher and is a 35-per-cent increase from its 52-week low of $33.50 last December. Last week, Talisman cited higher oil and gas prices when it reported second-quarter earnings had surged 12-fold from a year earlier to $208 million. calgaryherald.com