FOR: TALISMAN ENERGY INC.

Talisman Energy Reports Underlying Production Up 12%

NOV 2, 2010 - 05:10 ET

I am posting only excerpts from their report that applies to N. America or Marcellus Shale.

Production from the Pennsylvania Marcellus shale play averaged 222 mmcf/d during the quarter and was approximately 270 mmcf/d at the beginning of November.

Our non-core asset sales in North America have been heavily weighted towards natural gas and should generate in excess of $2 billion in proceeds this year.

"We continue to deliver very strong results from our North American shale portfolio. Shale now accounts for 36% of our North American natural gas volumes, up from 6% a year ago. Natural gas production from continuing operations in North America was up 24% compared to the third quarter of 2009.

"This is largely driven by the Pennsylvania Marcellus, where Talisman's production averaged 222 mmcf/d during the quarter, up from 38 mmcf/d a year ago. With production currently averaging approximately 270 mmcf/d, we are very confident that we will exit 2010 at the upper end of the 250-300 mmcf/d target range we have projected all year.

We are well positioned during this period of low natural gas prices in North America. Our balance sheet is strong, with approximately $2 billion of cash at the end of the quarter, although this will come down as we close some acquisitions and due to the natural phasing of capital spending. And, of course we still have undrawn bank lines of $2.8 billion. We have options in terms of capital allocation into next year and will finalize these plans over the coming months.

To view the whole report and others..