Talisman Energy announced a bumper second quarter as the firm continues its evolution towards becoming a two region company.
Talisman, which is working to reduce its exposure in the North Sea, recorded a 4% increase on production year-on-year in its second quarter results. Total production peaked at 375,000 boe/d.
Production from the firm’s core regions, which include the Americas and Asia-Pacific, topped out at 330,000 boe/d – a 14% increase year-on-year and a 4% increase from the previous quarter. New wells in Eagle Ford and its resource rich Greater Edson field both contributed to the inflated returns.
The restart of the troubled Claymore platform saw North Sea output increase by 12% on a year-on-year basis to 19,500 boe/d. The figure was also a 6% increase from the previous quarter. The platform, which came back on stream in February after a series of repairs, is located about 100 miles north-east of Aberdeen.
However, planned maintenance on Norway’s Veslefrikk and Brage saw production dip 12% to 14,5000 boe/d compared to the previous quarter’s figures.
The firm continues to steer its production strategy away from the North Sea through focused capital investment into its core regions, according to the firm’s chief executive.
“During the past two years we have focused our efforts and capital on a strong portfolio of long life assets in our Americas and Asia-Pacific core regions,” said Hal Kvisle.
“We have invested to grow production and cash flow from our best assets, while working to reduce operating and overhead costs.
“Our year-over-year performance demonstrates solid progress and underlines the strength of our core regions. Total production and liquids volumes from ongoing operations within these areas have grown 12% and 23% respectively. Through disciplined capital investment and a focus on operational excellence, we have grown corporate cash flow by 8% year-over-year, driven by strong performance in our core regions. We remain on track to meet our operating and financial targets for 2014.”
Earlier this month, Spanish energy firm Repsol confirmed it was in talks regarding potential “transactions” which could include assuming Talisman’s North Sea portfolio.
The Madrid-based firm has ring-fenced more than $5billion for targeted acquisitions.
Talisman, which has assets in North America, Southeast Asia, the North Sea, Algeria and Colombia, also confirmed the talks.
