Talisman records high cash flow

Talisman Energy has recorded a high cash flow for the first nine months of 2003. Cash flow to September 30 was $2,085 million compared to $1,886 million  a year ago. Cash flow during the third quarter was $640 million compared to $600 million in the previous quarter and $657 million a year earlier. The comparable number, excluding cash flow from Sudan operations, for the third quarter of 2002 was $543 million. Earnings to the end of September were $900 million versus $342 million in the same period last year. Net income during the quarter was $126 million  compared to $151 million ($1.08/share) a year ago.

Excluding Sudan operations, earnings in the same period last year were $77 million. Production averaged 379,000 boe/d during the quarter, in line with the company’s guidance and up 4 percent over the previous quarter. Unit operating costs were up during the quarter, averaging $7.31/boe, but are expected to fall with production increases in the fourth quarter. “Talisman’s strategic positioning in new exploration and development  areas is beginning to pay off,” said Dr. Jim Buckee, President and Chief Executive Officer. “Production is benefiting from increasing contributions from Malaysia, Vietnam and Algeria. We have had exploration success in a number of areas and have a significant inventory of high-impact exploration opportunities, some of which are currently drilling or about to spud. “The billion dollar PM-3 CAA oil and gas development in Malaysia/Vietnam is up and running, on time and on budget. Oil production is currently 12,000 bbls/d net to Talisman, with more wells being drilled and tied-in.

Peak oil production is expected in early 2004. First natural gas production has started and volumes will increase into 2004. “We have a very active ongoing program and have seen success on a number of fronts. This quarter saw Talisman’s first production from Norway, the startup of the first Blake Flank well in the North Sea and increasing Algerian production. Drilling success continued in North America and we have added to our pipeline infrastructure in core areas. We have a number of high-impact wells drilling in Colombia and Trinidad and have made our first discovery offshore Vietnam.”