Talisman reports increased Indonesian oil, gas production

Canadian oil, gas firm Talisman Energy reported on Tuesday that its Indonesian second quarter net oil, gas production averaged 78,000 BOEPD, an increase of 20% compared to same period last year and up 2% from the previous quarter.

The Company said Corridor Block onshore South Sumatra, where it has 36 percent non-operated interest.

Corridor achieved a record production rate of 352 MMCFD (net sales gas), reflecting facilities optimization to meet increased gas demand in the region, it said in a quarterly report. The company also approved a project to install additional gas compression to support Corridor's Dayung field and pursued debottlenecking initiatives at the Grissik Central Gas Plant to improve deliverability to existing Corridor customers.

Talisman?s share of production from the Tangguh LNG project contributed 22 mmcf/d during the quarter. The Company has 3.06 percent interest in Tangguh.

In the Ogan Komering JOB Block onshore South Sumatra, the Company commenced a 37 well infill program, which will be drilled over the next 24 months. The Jambi Merang drilling program is progressing well, with results exceeding expectations. The project is on track for first production in mid-2011, it said.

In May 2010, the Company was awarded PSCs in three new offshore blocks in the South Makassar basin, which were previously held under Joint Study Agreements. Talisman now holds an operated 70% interest in the South Sageri PSC, an operated 60% interest in the Sadang PSC, and a non-operated 33% interest in the South Mandar PSC.

The co-venturers have committed to drill one well on the South Sageri PSC and to conduct 3D seismic on all blocks within three years. In addition, Talisman has also recently entered into a new Joint Study Agreement in the area, it said. (alex)