Talisman Starts Production from Halley Field

Talisman Energy and its co-venturer Amerada Hess announced that first production was achieved from the Halley field on Tuesday, July 2, 2002.

Halley is located in UKCS Block 30/12b in the Central North Sea. The development well is producing at an initial rate of 15,000 bbls/d, and it is planned to increase this to a plateau rate of 20,000 bbls/d over the next few days.

The Halley field, with estimated reserves of approximately 11 mmboe and an expected field life of five years, has been developed with an extended reach well drilled from the Fulmar platform, which is operated by Shell and located some five kilometers to the southwest of the field. Oil and gas is being processed on Fulmar using existing and new facilities, with oil being exported via the Phillips operated Norpipe system to Teesside and gas being exported to St. Fergus via the Shell operated SEGAL pipeline. A water injection well to provide pressure support to the Halley reservoir is planned to commence drilling from the Fulmar platform in August and be on stream by December 2002.

The co-venture partners in the Halley field are Talisman Energy (UK) Limited (Operator) with 60% and Amerada Hess Limited with 40%. Talisman also holds a 12.71% interest in the Fulmar field.

"The Halley field was discovered twenty years ago and Talisman has overcome significant challenges in a relatively short timescale to successfully commercialize this previously stranded asset. Production has been achieved within two years of Talisman becoming operator. Drilling an extended reach well from a third party operated platform has required remarkable co-operation between ourselves and Shell and provides a model for future development of similar satellite discoveries," said Dr. Jim Buckee, President and Chief Executive Officer.