Independent Talisman close to Alaska entry, targets four prospects

Gary Park, Petroleum News Calgary correspondent

Canadian independent Talisman Energy is “within two weeks” of a possible deal that would see it become a significant player in Alaska, chief executive officer Jim Buckee said May 7.

He told analysts in a conference call that Talisman has its eye on at least four prospects of 300 million to 500 million barrels each.

Buckee did not offer any further details, but has made it clear this week that the company is hungry for acquisitions that could range up to several hundred million dollars.

Has up to $2 billion available

Calgary analysts believe Talisman is likely seeking interests in various fields through farm-in arrangements, without taking ownership of any.

They say Alaska has special appeal because the infrastructure is in place and there is none of the negative fallout from Sudan that has been a drag on stock values.

Talisman, with first quarter production of 194,000 barrels per day of oil and liquids and 1,09 billion cubic feet per day of natural gas, has an international portfolio that includes the North Sea, Algeria, Malaysia, Vietnam, Indonesia and Trinidad.

It is targeting production of 360,000-370,000 barrels of oil equivalent per day in the current quarter rising to 430,000-440,000 barrels in the fourth quarter.

Buckee said “a lot of assets” are coming on the market and he expects some will result in purchases by Talisman in “ensuing weeks,” either as add-ons to existing properties or to open up new exploration plays.

With Talisman shares “trade below net asset value by some margin,” Buckee is committed to “working harder” at the company’s industrial relations effort to raise the price from its current C$58 range, making it less vulnerable to takeover.

He refuses to dwell on the chances of a hostile bids. “If we’re taken, that’s the fortunes of war. In the meantime, we’ll continue to use our very strong financial position on a number of acquisitions,” he told reporters May 6.