Talisman updates North Sea, Asia-Pacific E&P

Offshore staff

CALGARY, Canada -- Talisman Energy is reviewing options for a development of its Shaw oil discovery in the UK North Sea, following two recent successful sidetrack wells. The company’s initial estimate of in-place oil was over 100 MMbbl.

Shaw, in block 22/22a, will probably be produced through the company’s Montrose/Arbroath facilities. The program will likely include upgrades to the MonArb platform to improve operating efficiency and to enhance recovery from the Montrose-Arbroath reservoirs.

Talisman issued the update in its third-quarter financial review. Among its other exploration interests, the company was recently awarded two prospective exploration blocks in a proven petroleum system offshore Sabah, Malaysia. Blocks SB 309 and SB 310 cover a total area of more than 13,000 sq km (5,019 sq mi), in water depths below 100 m (328 ft).

Another recent award was the deepwater Andaman III block offshore northern Sumatra in Indonesia. Talisman says this little-explored acreage has strong potential for gas and condensate. It plans to acquire 3D seismic prior to drilling in 2012.

Offshore Vietnam the company has concluded drilling of the HSD-4X appraisal well in block 15-2/01 in the Nam Con Son basin. The well was production tested in the basement and a second test performed in the Oligocene. Another basement appraisal well, HSD-5X, is due to spud shortly.

Onshore Papua New Guinea, Talisman picked up two exploration licenses in the Foreland basin following its acquisition of Rift Oil in June. It sees synergies between the gas potential in this area and its Panda gas discovery offshore in the Gulf of Papua.

As for offshore development programs, installation facilities and two development wells have been completed at the Yme field in the Norwegian North Sea, which will be produced via a production jackup. Talisman expects first oil during the second half of 2010.

In the Australia/East Timor area, the company expects sanction imminently for development of the Kitan discovery, with first oil scheduled for the second half of 2011. Off Vietnam, Talisman is progressing a plan for an early production scheme, which it hopes will be sanctioned in the first part of next year.

11/03/2009