Talisman’s midstream operations include approximately 1,035 km of gathering systems in Western Canada, including in the Erith, Lynx, Palliser, Pinto, Columbia, Minehead, Sundance, Wild River, Muskeg, Ansell, Medlodge, Berland West and Chauvin areas, and one operated gas plant (Berland West). The Company’s midstream assets support many areas within the Company’s Conventional division, including the Alberta Foothills, greater Edson and Chauvin oil. Total 2011 throughput (adjusted for sale) averaged 242 mmcf/d for gas and 24.1 mboe/d for oil, while generating revenues of $32.7 million in custom processing.
In October 2011, Talisman entered into a seven-year agreement with Pembina Pipeline Corporation (‘‘Pembina’’) for 150 mmcf/d of firm capacity at the Saturn plant at the Deep Cut facility, an enhanced natural gas liquids extraction facility to be built and operated by Pembina in the Wild River area of Alberta. The Deep Cut facility would allow Talisman to increase the liquids recovery from Wild River and Bigstone gas from 9 bbls/mmcf to 60-80 bbls/mmcf.
The Company also owns certain properties in British Columbia, including several licenses relating to coal rights. These coal assets are not part of the Company’s core competency, and Talisman has initiated the process of divesting itself of these non-strategic assets.
