| |
Talisman anticipates 2005 production per share to grow to approximately
0.44-0.47 boe/share. Additional discussion of management’s estimates
and assumptions for 2005 can be found in the MD&A section entitled
Outlook for 2005.
- Production is expected to average 445,000-475,000 boe/d,
without acquisitions or dispositions.
- Production increases are expected in most of the Company’s
geographic segments with the majority coming from
international projects.
- Exploration and development spending is expected to be
$3.1 billion ($1.4 billion in North America and $1.0 billion
in the North Sea).
- The development of the Tweedsmuir and Tweedsmuir South fields
in the North Sea will continue with anticipated production start-up
in late 2006 (adding approximately 45,000 boe/d in 2007).
- The Trinidad development project started production in January 2005
and is expected to average 12,000-16,000 bbls/d, net to Talisman,
in 2005.
- Long-term debt is expected to remain relatively unchanged at
$2.5 billion.
| Net Income (millions of dollars) |
|
| 2003 Net income1 |
1,012 |
| Favorable (unfavorable) |
|
| Cash items variance |
|
| Oil and liquids volumes |
164 |
| Natural gas volumes |
342 |
| Natural gas prices |
216 |
| Natural gas foreign exchange price impact |
(174) |
| Oil and liquid prices |
1,020 |
| Oil and liquids foreign exchange price impact |
(304) |
| Hedging - Commodities |
(286) |
| Royalities |
(230) |
| Other revenue |
9 |
| Operating expense |
(159) |
| Transportation expenses |
(11) |
| Interest expense |
(21) |
| Current taxes (including Petroleum Revenue Tax) |
(301) |
| General and administrative |
(31) |
| Stock-based compensation payments |
(35) |
| Other |
3 |
| Total cash items variance |
202 |
| Non-cash items |
|
| Gain on sale of Sudan |
(296) |
| Depreciation, depletion, and amortization expense |
(215) |
| Dry hole expense |
(60) |
| Exploration expense |
(25) |
| Future taxes (including Petroleum Revenue Tax) |
72 |
| Stock-based compensation (non-cash) |
49 |
| Other |
(76) |
| Total non-cash items |
(551) |
| 2003 Net Income1 |
663 |
Sale of Sudan Operations
On March 12, 2003, Talisman completed the sale of an indirectly held
subsidiary, which owned an interest in the Greater Nile Oil Project in Sudan,
to ONGC Videsh Limited, a subsidiary of India’s national oil company. The
aggregate amount realized by Talisman from the transaction (including
interest and cash received by Talisman between September 1, 2002 and
closing) was $1.13 billion (US$771 million). (See note 19 to the
Consolidated Financial Statements.)
|
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