Talisman Energy and Ecopetrol Declare Commerciality of the Akacias
Field in Colombia
CALGARY, ALBERTA--(Marketwired - Dec 9, 2013) - Talisman Energy
Inc. (Talisman) (TSX:TLM)(NYSE:TLM) and Ecopetrol (ECP)
(NYSE:EC)(TSX:ECP)(BVC:ECOPETROL) today announced an important
milestone towards developing the Akacías field in Block CPO-9 in
Colombia in the Department of Meta.
The co-venturers are in the process of completing a successful
nine-well appraisal program following the Akacías discovery in
2010, and are now ready to move forward with field development. A
Declaration of Commerciality has been submitted to the regulator
and a conceptual field development plan will be filed within the
next 90 days.
In making the Declaration of Commerciality, the two companies
announce the following:
- Eight successful appraisal wells have been drilled in 2013 in
the Akacías field, with one additional well currently
drilling.
- Current production of 7-9 API oil from three wells on long-term
test is 5,300 bopd, which will ramp up as the remaining wells are
put on long-term test.
- To date, 1.5 million barrels of oil have been produced from the
Akacías-1 discovery well, which commenced long-term test in May
2011 with average production in excess of 2,000 bopd.
- Transportation of the oil to market is occurring via the
capacity the two companies have in the San Fernando and Ocensa
pipeline systems.
- The original oil in place mapped with the currently producing
wells is 1.3 billion barrels. Assuming a 10% recovery factor, a 2C
contingent resource of 130 million barrels of oil is
indicated.
- Structurally deeper wells drilled but yet to be placed on
long-term test indicate greater oil in place; recoverability is yet
to be determined.
Upon receipt of the required environmental licence, additional
appraisal and development drilling will commence to determine the
full extent of the Akacías field. All activity in Akacías and Block
CPO-9 will continue to be conducted in a safe, environmentally and
socially acceptable manner.
"We are pleased to be working with Ecopetrol as our partner and
operator of Block CPO-9 on the important Akacías oil discovery, and
are encouraged by the results to date," said Hal Kvisle, President
and CEO of Talisman. "We will now move forward to agree on a
development plan and obtain the necessary environmental permits.
This milestone reflects a material step towards realizing the
potential of our Colombian business and will bring significant
benefits to Colombia."
"Akacías constitutes one of the major exploration achievements
in recent years in Colombia, and clearly shows the heavy crude
potential in the Llanos area, the target of Ecopetrol's exploration
campaign to reach its goals of producing one million barrels of
clean oil equivalent in 2015 and 1.3 million barrels of oil
equivalent in 2020. We will continue working together with our
partner, Talisman Colombia, in the assessment and development not
only of Akacías, but also of the potential existing across all the
licensed area," said Ecopetrol's CEO, Javier Gutiérrez
Pemberthy.
Ecopetrol is the operator of Block CPO-9 and has a 55% interest
in the license. Talisman has a 45% interest in the license. The
Akacías area borders the Cubarral Block, where the Castilla and
Chichimene oil fields are located.
Talisman Energy Inc. is a global upstream oil and gas company,
headquartered in Canada. Talisman has two core operating areas: the
Americas (North America and Colombia) and Asia-Pacific. Talisman is
committed to conducting business safely, in a socially and
environmentally responsible manner, and is included in the Dow
Jones Sustainability (North America) Index. Talisman is listed on
the Toronto and New York stock exchanges under the symbol TLM.
Please visit our website at www.talisman-energy.com.
Ecopetrol is the largest company in Colombia and is integrated into
the oil chain; it is among the 40 major oil companies in the world
and among the four main ones in Latin America. Besides Colombia -
where it generates over 60% of the national production - it is
present in exploration and production activities in Brazil, Peru
and US (Gulf of Mexico). Ecopetrol owns the largest refinery in
Colombia and most of the pipeline and multi-product pipeline
network in the country, and is significantly increasing its
participation in bio-fuels.
Advisories
This news release contains information that constitutes
"forward-looking information" or "forward-looking statements"
(collectively "forward-looking information") within the meaning of
applicable securities legislation. This forward-looking information
includes, among others, statements regarding: filing of a field
development plan; planned drilling; and other expectations,
beliefs, plans, goals, objectives, assumptions, information and
statements about possible future events, conditions, results of
operations or performance.
The factors or assumptions on which the forward-looking
information is based include: assumptions inherent in current
guidance; projected capital investment levels; the flexibility of
capital spending plans and the associated sources of funding; the
successful and timely implementation of capital projects; the
continuation of tax, royalty and regulatory regimes; ability to
obtain regulatory and partner approval; commodity price and cost
assumptions; and other risks and uncertainties described in the
filings made by Talisman with securities regulatory authorities.
Talisman believes the material factors, expectations and
assumptions reflected in the forward-looking information are
reasonable but no assurance can be given that these factors,
expectations and assumptions will prove to be correct.
Forward-looking information for periods past 2013 assumes
escalating commodity prices. Finalization of the field development
plan is subject to receipt of all necessary regulatory
approvals.
Undue reliance should not be placed on forward-looking
information. Forward-looking information is based on current
expectations, estimates and projections that involve a number of
risks which could cause actual results to vary and in some
instances to differ materially from those anticipated by Talisman
and described in the forward-looking information contained in this
news release. The material risk factors include, but are not
limited to: the risks of the oil and gas industry, such as
operational risks in exploring for, developing and producing crude
oil and natural gas; risks and uncertainties involving geology of
oil and gas deposits; risks associated with project management,
project delays and/or cost overruns; uncertainty related to
securing sufficient egress and access to markets; the uncertainty
of reserves and resources estimates, reserves life and underlying
reservoir risk; the uncertainty of estimates and projections
relating to production, costs and expenses, including
decommissioning liabilities; risks related to strategic and capital
allocation decisions, including potential delays or changes in
plans with respect to exploration or development projects or
capital expenditures; fluctuations in oil and gas prices, foreign
currency exchange rates, interest rates and tax or royalty rates;
the outcome and effects of any future acquisitions and
dispositions; health, safety, security and environmental risks,
including risks related to the possibility of major accidents;
environmental regulatory and compliance risks, including with
respect to greenhouse gases and hydraulic fracturing; uncertainties
as to the availability and cost of credit and other financing and
changes in capital markets; risks in conducting foreign operations
(for example, civil, political and fiscal instability and
corruption); risks related to the attraction, retention and
development of personnel; changes in general economic and business
conditions; the possibility that government policies, regulations
or laws may change or governmental approvals may be delayed or
withheld; and results of Talisman's risk mitigation strategies,
including insurance and any hedging activities. The foregoing list
of risk factors is not exhaustive. Forward-looking information is
based on the estimates and opinions of Talisman's management at the
time the information is presented. Talisman assumes no obligation
to update forward-looking information should circumstances or
management's estimates or opinions change, except as required by
law.
Unless the context indicates otherwise, references in this news
release to "Talisman" includes, for reporting purposes only, the
direct or indirect subsidiaries of Talisman Energy Inc. and the
partnership interests held by Talisman Energy Inc. and its
subsidiaries. Such use of "Talisman" to refer to these other legal
entities and partnership interests does not constitute waiver by
Talisman Energy Inc. or such entities or partnerships of their
separate legal status, for any purpose.
Production Unless otherwise stated, production volumes
estimates are stated on a company interest basis prior to the
deduction of royalties and similar payments.
Resources In this news release, Talisman discloses best
estimate contingent resources (2C) as at December 5, 2013.
Contingent resources are defined as those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
known accumulations using established technology or technology
under development, but which are not currently considered to be
commercially recoverable due to one or more contingencies. The key
contingencies that prevent the subject resources from being
classified as reserves are: facility engineering design;
development plan approval; and environmental license approval.
There is no certainty that it will be commercially viable to
produce any portion of the resources. In addition to these
contingencies and uncertainties, the development of commerciality
of resources is also subject to a number of risk factors, as
discussed more fully above. Any resources data contained in this
news release reflects Talisman's estimates of its resources. While
Talisman annually obtains an independent audit of a portion of its
proved and probable reserves, no independent qualified reserves
evaluator or auditor was involved in the preparation of the
resources data disclosed in this news release. In this news
release, estimates of resources for individual properties may not
reflect the same confidence level as estimates of resources for all
properties, due to the effects of aggregation.
Talisman Energy Inc. - Media and General InquiriesBrent
AndersonManager, External Communications403-237-1912
tlm@talisman-energy.comTalisman Energy Inc. - Shareholder and
Investor InquiriesLyle McLeodVice-President, Investor
Relations403-237-1020tlm@talisman-energy.comwww.talisman-energy.com
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