Talisman Makes Discovery Next to Buchan Fld in the North Sea

Talisman Energy has made a further oil discovery in the UK Central North Sea, adjacent to the Buchan Field and the 2002 J1 discovery.

The 21/1a-20 well successfully tested the J5 exploration prospect, which is located about six kilometers northeast of the Buchan Field in Block 21/1a and four kilometers southeast of the J1 discovery. The well was drilled by Diamond Offshore's semisub, Ocean Princess. The well discovered good quality, commercial hydrocarbon pay in an Upper Jurassic sandstone reservoir. The well tested and flowed at a rate of 7,100 bbls/d of 40.2 degrees API oil plus 7.6 mmcf/d of natural gas. These rates were limited by surface test equipment. No oil water contact was encountered in the well but pressure data and drill stem test data indicate commercial volumes of oil in place.

The well has been drilled in an optimally located structural position. Subject to DTI approval, it will be retained as a producer to be tied back to the J1 discovery, which is currently in the process of development planning. Initial estimates suggest that the discovery contains 10-40 million barrels of oil-in-place. This is in addition to the 40-70 mmbbls of oil-in-place already established on J1.

"This is our third exploration success in a row this year in the North Sea and demonstrates the quality of our core areas," said Dr. Jim Buckee, President and Chief Executive Officer. "Three more North Sea exploration wells are set to spud in November."

Talisman is operator with a 94.014% interest in the well. The other participant is First Oil with 5.986%.