Production
The Company expects production from continuing operations to grow 5-10% annually to 2010. Production in 2008 is expected to be between 435,000 and 460,000 boe/d, with the range primarily defined by ongoing commissioning of the Tweedsmuir field in the North Sea.
2007 production averaged 485,000 boe/d up from 470,000 boe/d in 2005. Oil and liquids production was up 5% to 261,634 bbls/d. The increase came predominantly from Southeast Asia (up 16,106 bbls/d). Talisman increased its natural gas production by 2% to 1,342 mmcf/d.
Production in the fourth quarter averaged 486,000 boe/d, a decrease of 6% over the same period in 2005. This is after asset sales, which had an impact of 12,200 boe/d during the quarter. Talisman's North American gas production averaged 942 mmcf/d during the quarter, an increase of 4% over the previous year despite the loss of 23 mmcf/d due to asset sales.
Production for 2005 averaged 470,000 boe/d, an increase of 7% over 2004.
Reserves
The Company replaced 102% of its production with proved reserves (excluding net acquisitions and dispositions) in 2007, with a three year average of 113%. Regionally, the Company replaced 148% of production in Scandinavia, 116% in the UK and 112% of North American natural gas production. The replacement ratio in Southeast Asia was only 76%, however, this does not take into account recent drilling successes offshore Vietnam.
Approximately 36% of Talisman's proved reserves are in North America, 29% in the North Sea and 29% in Southeast Asia. Total proved reserves were down slightly from year-end 2006, reflecting non-core asset sales. At year end, the Company had 2.6 billion boe of proved and probable reserves with a reserve life index of 16 years.
Proved Reserves (Million BOE)
December 31, 2006: 1,667
Discoveries, extensions and additions: 109
Net acquisitions and dispositions: (10)
Net revisions and transfers: 58
Production: (164)
December 31, 2007: 1,660
Probable Reserves at December 31, 2007: 972
Talisman replaced 116% of production through drilling additions and revisions to proved reserves in 2006. Talisman increased its total proved reserves by 2% to 1.67 billion boe. Net of royalties, the Company had 1.37 billion boe of proved reserves (up 4%). At year-end, Talisman had 5.4 tcf of proved natural gas reserves and 767 mmbbls of proved oil and liquids reserves.
Talisman replaced 189% of production from all sources in 2005 (proved reserves) and 120% through drilling and revisions. At year end, Talisman had 5.4 tcf of proved natural gas reserves (up 4%) and 736 mmbbls of proved oil and liquids reserves (up 19%). Talisman increased its total proved reserves by 10% to 1.6 billion boe. Net of royalties, Talisman had 1.3 billion boe of proved reserves (up 9%).
