Talisman’s principal operating areas in Scandinavia are the Southern North Sea Area and the Mid North Sea Area, which are comprised of a total of 10 fields.
In 2010, Talisman completed the acquisition of a 35% interest in PL 378, including the Grosbeak discovery, a 20% interest in PL 375, which includes the Beta discovery, and interests in additional exploration acreage.
In 2010, production in Scandinavia averaged 54,000 boe/d, accounting for approximately 13% of the Company’s production worldwide. The primary focus in Scandinavia is oil, with oil and liquids contributing to 73% of Talisman’s Scandinavia production. As at year-end 2010, Talisman operated approximately 77% of its Scandinavia production.
Talisman expects production in Scandinavia will increase when the Yme project comes onstream, expected in the second quarter of 2012. Longer term, Talisman aims to sustain Scandinavia production at around 30,000-50,000 boe/d through exploitation opportunities within existing producing fields, the possible development of the Grevling, Grosbeak and Beta discoveries and exploration.
In 2011, Talisman expects cash capital spending to be US$80 million for exploration and US$300 million for development. Talisman’s plan also includes non-cash capital (capitalized lease) of approximately US$370 million. Talisman’s 2011 drilling program includes participation in up to two exploration and one appraisal wells and an eight-well development program in the Varg, Gyda, Veslefrikk and Brage fields.
