Talisman Strikes Oil in Vietnam - Analyst Blog
May 21 2013 - 3:10PM
Zacks
Canadian energy explorer,
Talisman Energy Inc. (TLM) recently declared first
oil production from fields at the Hai Su Trang (HST) and Hai Su Den
(HSD) development, located offshore Vietnam.
The HST and HSD development consists of two offshore oil fields
within block 15-2/01, on the western edge of Vietnam's prolific Cuu
Long basin. The operator of the said block is Thang Long Joint
Operating Company (TLJOC) in which Talisman holds a 60% working
interest, with the remaining 40% being controlled by PetroVietnam
Production Exploration Corporation.
The development is located 75 kilometers offshore Southern Vietnam
in water depths of about 45 meters. It comprises two wellhead
platforms which are attached to the existing Te Giac Trang FPSO. At
HST, two wells were drilled, finished and attached and at HSD two
earlier drilled wells were completed and attached by TLJOC.
Once the facilities are totally commissioned, Talisman expects
gross production of 15,000 barrels per day. Management at Talisman
believes that this development will help the company in achieving
its regional and corporate goal of adding near-term, high-margin
liquids volumes and related cash flow.
We like Talisman for its solid base business in Western Canada and
in the U.K. North Sea, while offering exposure to some of the most
prospective unconventional natural gas plays in North America and
high-impact exploration prospects worldwide.
However, Talisman reported weak first-quarter 2013 results due to
lower oil and liquids price realizations. The company announced
loss per share from continuing operations (excluding non-operating
items) of 6 cents against the Zacks Consensus Estimate for a profit
of 4 cents.
Talisman currently retains a Zacks Rank #3 (Hold), implying that it
is expected to perform in line with the broader U.S. equity market
over the next one to three months.
Meanwhile, there are certain other Canadian exploration and
production firms that are expected to perform better in the short
term. These include ARC Resources Ltd. (AETUF) as
well as Enerplus Corporation (ERF) with Zacks Rank
#1 (Strong Buy) and Gastar Exploration Ltd (GST)
with Zacks Rank #2 (Buy).
ARC RESOURCES (AETUF): Get Free Report
ENERPLUS CORP (ERF): Free Stock Analysis Report
GASTAR EXPL LTD (GST): Free Stock Analysis Report
TALISMAN ENERGY (TLM): Free Stock Analysis Report
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