Talisman reports Indonesian ops update
Tuesday, March 9 2010 - 08:43 AM WIB
Talisman?s Indonesian assets include onshore interests at Corridor, Ogan Komering and Jambi Merang as well as offshore interests in Southeast Sumatra, Offshore Northwest Java, Tangguh and extensive exploration acreage at Pasangkayu, Sageri and Andaman III.
Talisman also has an indirect 6% interest in the Grissik to Duri pipeline and in the Grissik to Singapore pipeline.
The Company?s 2010 activities in Indonesia will focus primarily on the Corridor PSC. Exploration activities in Pasangkayu, Sageri and Andaman III are described in the ??Exploration?? section.
Talisman has a 36% non-operated interest in the Corridor PSC and field production facilities. There are three major buyers of Corridor gas. Gas production from Corridor began in 1998 with gas sales to PT Caltex Pacific Indonesian at the Duri oilfield.
Gas sales commenced in September 2003 to Gas Supply Pte. Ltd., located in Singapore, under the terms of a 20-year gas sales agreement. The sale of gas to PT Perusahaan Gas Negara (Persero) Tbk., made pursuant to a 17-year gas sales agreement, began at 50 mmcf/d gross sales gas from Corridor in October 2007 and averaged 243 mmcf/d gross sales gas in 2009.
In 2009, production from the Corridor PSC was 56,000 boe/d, which accounted for approximately 52% of Southeast Asia production.
Talisman expects that capital spending in 2010 in Corridor will be approximately $65 million and plans to participate in the drilling of two development wells. The process to sanction Suban Phase 3 was initiated in 2008 and will continue in 2010.
On December 31, 2007, Talisman purchased all the shares of an entity which held a 3.06% interest in the Tangguh LNG Project.
This project is located in Papua in Indonesia. Two LNG trains came onstream in mid-2009. Exposure to this project allows Talisman the opportunity to evaluate current technologies for LNG, which may add value in monetizing Talisman?s gas reserves in other areas.
In Indonesia, Talisman participated in one successful and two unsuccessful exploration wells in 2009 with one other exploration well drilling over year-end 2009. Twenty-three development wells were also drilled in 2009.
In 2010, Talisman plans to spend approximately C$154 million in Indonesia with C$83 million directed to development spending.
Talisman plans to participate in two exploration wells in the Makassar Strait and 29 development wells in 2010.
Exploration
In 2009, the Company participated in drilling three exploration wells in the Southeast Sumatra PSC, one of which was successful and two of which were unsuccessful. The Company also completed a number of seismic acquisitions in the Makassar Strait and will commence a drilling program in 2010.
In 2009, Talisman was awarded a 100% interest in the Andaman III exploration block in the North Sumatra Basin of Indonesia.
Talisman plans to drill two wells in 2010 in the Pasangkayu Block in the Makassar Strait, and prepare for a well in the Sageri Block in 2011.
Talisman will also acquire seismic in the Andaman III Block in the North Sumatra Basin. The Company estimates Indonesia exploration spending to be approximately $70 million in 2010. (end of edited excerpt)
