Talisman Acquires U.S. Gas Assets for C$90 Million
Talisman Energy Inc, through its wholly owned subsidiary Fortuna Energy Inc., has acquired the assets of Fairman Drilling Company, FDC Venture 15, LP, East Resources, Inc. and ABARTA Oil & Gas Co., Inc. for US$58.6 million.
With the purchase, Talisman will acquire approximately 23 bcf of proved gas reserves (at a cost of about US$1.25/mcf) and 10 mmcf/d of production. Approximately half of the purchase price will be allocated towards land, seismic and other assets, including tax pools. Subject to certain preferential rights Talisman will acquire 268,000 acres of land in New York State (most of which is 100% working interest), augmenting its position on the underexplored deep Trenton-Black River gas play fairway. The Company has identified over 30 development locations on the lands and plans to drill two exploration and four development wells in 2003.
"We are excited by the addition of this acreage, which will provide us with high netback, low cost, gas production and prospects close to infrastructure and markets," said Dr. Jim Buckee, President and Chief Executive Officer. "We are developing a highly prospective acreage position in the region, with the potential to develop a new core area over the next few years."
The Trenton-Black River play in New York is similar to the Trenton oil play in Ontario, where Talisman is the largest oil and gas producer. Talisman's Trenton expertise in seismic interpretation, drilling and completions provides a solid base for the Company to broaden its exploration and development program in the region.