Talisman’s plan for the North Sea is to maintain the region as a stable, cash generating business through at least the medium term. Talisman is the leading independent operator in the UK. Talisman’s objective in the UK is to hold production at between 80,000-90,000 boe/d through the end of the decade.
Talisman has two core operating areas in the UK: the Northern Business Area (‘‘NBA’’) and the Central Business Area (‘‘CBA’’). In 2010, production in the UK averaged 77,000 boe/d. UK production accounted for 18% of the Company’s production worldwide in 2010. The primary focus in the UK is oil, with oil and liquids contributing to 97% of Talisman’s UK production. As at year-end 2010, Talisman operated approximately 92% of its UK production.
In 2011, Talisman’s capital program in the UK is comprised of US$70 million of exploration spending and US$700 million of development spending. Talisman’s 2011 UK drilling program includes participation in one exploration well, which was drilling over year-end 2010, and eight development wells.
