Talisman Energy (TLM) held a conference call on November 2, 2010, to discuss its financial report for the third quarter of 2010. The company also disclosed additional information on its acreage in Pennsylvania that is prospective for the Marcellus Shale.
“And the Marcellus Shale, we’ve continued to day we’ve built a portfolio there when we doubled down last year in the Marcellus and had new three to five year leases. Again we continue to be very much in control of the pace at which we have land expiry not being an issue for us. We don’t expect any land in the Pennsylvania side of the Marcellus to walk away from us next year or at any time going forward.”
“In the Marcellus Shale, to use that as an example, within the portfolio the finding and development costs that we expect to see this year in the Marcellus is going to be roughly $8 a barrel… we expect to see 15% to 20% improvement this year in the CAPEX costs for drilling our wells in the Marcellus.”
“In general the Marcellus continues through the improvements that we’re seeing to be well on its way to delivering the $4 or less break even, which is where we want the Marcellus to be. We believe it’s the best dry gas play in North America and we believe we’re in the best part of that play.”
“And one of the choices we’ve signaled here today is we will be slowing down from where we are today in the Marcellus and looking to reallocate some of that capital towards liquid based production around the Talisman organization.”