Talisman Energy Reports Record Net Income of $1.4 Billion, Cash Flow Increases 48% to $1.7 Billion, Production From Continuing Operations Up 10% NOV 4, 2008 - 05:15 ET CALGARY, ALBERTA--(Marketwire - Nov. 4, 2008) - Talisman Energy Inc. (TSX:TLM) (NYSE:TLM) reported its operating and financial results for the third quarter of 2008.
- Cash flow(1) during the quarter was $1.7 billion, an increase of 48% from a year ago and relatively unchanged from the second quarter. Cash flow from continuing operations(1) was also $1.7 billion.
- Net income was a record $1.4 billion, an increase of 305% from a year earlier, driven by increased netbacks, mark-to-market gains on derivative contracts and stock-based compensation recovery.
- Earnings from continuing operations(1) were $731 million, up 189% compared to the third quarter in 2007, driven by increased volumes and higher netbacks.
- Production averaged 443,000 boe/d, 1% above the third quarter of 2007, despite the sale of approximately 40,000 boe/d of non-core assets over the past year. Production was also 3% above the previous quarter.
- Production from continuing operations averaged 435,000 boe/d, 10% above the same quarter last year and 4% higher than the second quarter of 2008.
"In Malaysia/Vietnam, growth projects are being progressed, with Northern Fields first gas delivered on time during the quarter, and although start up of Song Doc has been slightly delayed, we expect first oil in the next few weeks. Northern Fields first oil remains on track for the first quarter of 2009. Early development plans for the Hai Su Trang and Hai Su Den fields are also moving toward approval. First production from Rev and Yme in Norway remains on track for the announced dates".
"Northern Fields drilling operations and progress on the main Bunga Orkid-A processing and accommodation platform are on schedule for first oil from the Northern Fields Development at the end of first quarter 2009. Three of five initial gas wells were completed in mid-October and each are currently producing approximately 70 mmcf/d gross raw gas (20 mmcf/d net sales gas), in line with pre-drill expectations. The remaining two wells will be tested and completed in mid-December. Development drilling continues, with about one-quarter of the planned 50 well program completed to date".
>> The coming trend for drilling programs in the near future would be deep water reservoirs, tight shale with enormous reserves, re-entry programs and especially huge reservoirs in exotic locations with harsh environment. Watch for upcoming developments in South America particularly in Brazil to begin ramping up. The commodity would be relatively more stable now that the Wall Street vultures have mostly given up their papers. Expect more tertiary recovery ops in brown fields.