"Talisman's major accomplishments in 2001 were the creation of two new international growth areas and the value generated through substantial reserve additions," said Dr. Jim Buckee, President and Chief Executive Officer. "At year end 2001, Talisman's proved reserves totaled 1.5 billion barrels of oil equivalent, an increase of 26% from the previous year. We also increased our probable reserves by 27% to over 990 mmboe. Our replacement cost, including acquisitions, was about $7/boe for proved reserves and $5.75/boe for proved plus half probable.
"Production averaged 419,000 boe/d for the year and 460,000 boe/d in the fourth quarter. Excluding major asset sales or acquisitions, we expect production to be in the 450,000-480,000 boe/d range this year. Production growth over the next three years, from identified projects, is expected to be about 10% per annum.
"In total, we expect to spend $2 billion this year and the Company is in strong financial shape. Talisman has a number of significant developments underway including several North Sea oil fields, major projects in Southeast Asia, as well as an oil field development in Algeria. Canada continues to be our largest single investment area, with substantial drilling programs planned for the Greater Arch, Alberta Foothills and Edson. Exploration success is continuing in Trinidad where we booked more than 60 mmbbls of probable oil reserves and 130 bcf of probable gas reserves last year.
"We generated a record high $2.5 billion in cash flow last year, even though oil and natural gas prices fell throughout the year. There is still uncertainty about future commodity prices, but with indications of a strengthening US economy, we may see oil and gas prices strengthen later in the year. Talisman's cash flow this year should be in the $15-16/share range based on US$20/bbl WTI oil prices and US$2.45/mcf NYMEX gas prices."
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