Talisman Acquires Completes North Sea Acquisition


Talisman Acquisition
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Talisman Energy has completed the acquisition of the Flotta Catchment Area (FCA) interests of the Intrepid Energy group at a price of US$137.5 million at January 1, adjusted for subsequent cash flows. The deal comprises Intrepid's 13.7333% interest in the Claymore field; its 19.556% interest in the Piper, Saltire, Chanter, Iona and Scapa fields and Flotta oil terminal; its 19.5566% interest in the MacCulloch pipeline; and its interests in various related exploration licences. Talisman now owns 72.478% of the Claymore field and 80% of Piper and associated fields.

The acquisition will add 44 mmboe of proved plus probable reserves (27 mmboe proved reserves) and is expected to yield incremental Talisman production of 5,100 boe/d in 2004 (annual basis). The mid term production impact is expected to be 9,000 boe/d in 2005 and 10,000 boe/d in 2006.

"This acquisition consolidates our ownership in one of our key North Sea operated core areas," said Dr. Jim Buckee, President and Chief Executive Officer. "The area and, particularly, the FCA, continue to show growth potential; the most recent infill well completed on Claymore in April started production at 6,000 boe/d. We hope to extend field life beyond 2022. The North Sea continues to provide Talisman's highest netbacks, averaging over $24/boe, after operating costs and royalties, in the first quarter of 2004."
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