Talisman Energy Canada (“Talisman”) has initiated a process for the divestiture of certain gas weighted assets (“Talisman 2010 Property Divestiture”) in Western Canada and has retained Scotia Waterous Inc. and RBC Capital Markets as its technical and financial advisors to assist in this process.
The Talisman 2010 Property Divestiture consists of long life gas weighted properties located in Western Alberta and Northeast British Columbia. The properties are grouped into 3 primary areas (Greater Peace River Arch, Central Alberta Foothills and Greater Hinton) as outlined in the map below. The 3 primary areas will be further subdivided into packages with 3 packages in Greater Peace River Arch, 2 packages in Central Alberta Foothills and 1 package in Greater Hinton.
AREA OVERVIEWS
AREA HIGHLIGHTS
Greater Peace River Arch: Significant land position with operated infrastructure and upside leveraged to unconventional Montney |
- Overview
- Dec. 2009F PDP production of 115 mmcfe/d (19,200 boe/d)
- Main Fields: Pouce Coupe, Progress, Wembley, Saddle Hills, Teepee, Boundary Lake, Valhalla, Glacier
- Interest in over 1,200 gross sections
- Multi-zone production from Devonian to Upper Cretaceous zones
- Attractive operating costs under $9.00 per boe
- Significant Talisman operated infrastructure
- 24% oil and NGLs
- Land
- Over 260,000 net undeveloped acres of land
- AJM Reserve Evaluations
- PDP 35,065 Mboe
- Total Proved 61,645 Mboe
- Proved + Probable 93,371 Mboe
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- Significant Upside
- 149 PUD & Probable locations identified in the AJM report
- 147 opportunities identified with multi-zone objectives that are incremental to the AJM report
- Montney Unconventional Resource Exposure
- Developed position in the Montney unconventional resource play with approximately 8,800 boe/d of Montney production from established reserves
- 98 PUD and Probable Montney locations identified in the AJM report with 87 Montney locations identified that are incremental to the AJM report
- Montney acreage offsets highly successful Upper and Lower Montney development of other area operators (Birchcliff – Pouce Coupe; EnCana – Swan)
- Greater Peace River Arch contains three packages: North, Central and South.
- Significant multi-zone upside is identified in all packages
- Montney upside is concentrated in Central and South packages
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Central Alberta Foothills: Stable cash flow producing property, with attractive F&D costs and attractive exploration upside |
- Overview
- Dec. 2009F PDP production of 115 mmcfe/d (19,174 boe/d)
- Main Fields: Stolberg, Cordel, Brown Creek, Voyageur, Lovett River, Bighorn, Ram, Basing, Mountain
- Interest in over 527 gross sections
- Predominantly Mississippian production from folded and fractured carbonate thrust sheets
- Substantial area infrastructure with ability to divert gas to various gas plants in the area
- Land
- Over 165,000 net undeveloped acres of land
- AJM Reserve Evaluations
- PDP 50,925 Mboe
- Total Proved 53,996 Mboe
- Proved + Probable 78,196 Mboe
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- Long Life Reserves
- 11 Year RLI property (P+P)
- Low decline rates of 15%
- Stable cash flow producing property
- Attractive Upside
- 3 PUD, 11 Probable locations assigned in AJM reserve report
- 16 additional opportunities identified that are incremental to the AJM report (avg. of 10 Bcf per well)
- Drill, complete and tie-in costs average $12 million per well
- Central Alberta Foothills will be marketed in 2 packages:
- North- Mountain/Basing
- South- Stolberg/Ram
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Greater Hinton: Substantial near term upside through a significant number of drilling locations supported by a large land position |
- Overview
- Dec. 2009F PDP Production of 32 MMcfe/d (5,283 boe/d) from 43 producing wells
- Producing Fields: Hinton, Anderson, Solomon and Cabin Creek
- Interest in 459 gross sections
- Multi-zone Cretaceous production in Outer Foothills region
- Tight, over pressured, water free reservoirs which can be identified seismically and effectively fracture stimulated
- Producing formations up to 4,000 metres deep with 3 to 4 completed zones per well
- Land
- Over 200,000 net undeveloped acres of land
- AJM Reserve Evaluations
- PDP 9,349 Mboe
- Total Proved 19,507 Mboe
- Proved + Probable 34,008 Mboe
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- Attractive Upside
- 23 PUD and 16 Probable locations in AJM reserve report
- 478 additional opportunities identified that are incremental to the AJM report (avg. of 5.3 Bcf of sales gas per well)
- Drilling, completion and tie-in costs of approximately $8.5 million per well
- Packaging
- Greater Hinton will be marketed as one package
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OFFERING RESERVES AND FINANCIAL SUMMARY
| Notes: |
1. |
Engineering reports for Proved Producing, Total Proved and Proved + Probable prepared by AJM Petroleum Consultants, effective November 30, 2009.
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2. |
Price forecast used in engineering reports: AJM Forecast Prices - September 30, 2009
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3. |
2008 A based upon the Lease Operating Statements.
2009 A/F reflects actuals from the Lease Operating Statements for January to September 2009 inclusive, estimated production for October and November 2009 and the AJM PDP production forecast for December 2009.
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4. |
Liquids include oil, condensate, and NGL.
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5. |
Numbers may not match due to rounding. |
PROCESS
The timetable for the process is expected to be as follows:
| Milestone |
Date |
| Information Memorandum |
on or about January 19, 2010 |
| Data Room Opens |
on or about January 19, 2010 |
| Non-binding Proposals due |
March 4, 2010 |
Information Memorandums will be available by visiting this website on or about January 19, 2010. The Information Memorandums provide further detail on the process and the assets, including property descriptions, development opportunities, and the Reserves Report.
Confidential information will be available to parties that have executed a Confidentiality Agreement. Interested Parties should execute and deliver two copies of the Confidentiality Agreement to Scotia Waterous. Confidential information will be available in the on-line Virtual Data Room and the Physical Data Room.
CONTACTS
Any questions related to the Talisman 2010 Property Divestiture can be directed to the Scotia Waterous or RBC Capital Markets representatives listed below.
Scotia Waterous Contacts |
RBC Capital Markets Contacts |
Paul Walmsley, Managing Director
(403) 218-6789 |
Derek Neldner, Managing Director
Tel: (403) 299-6926 |
Drew Ross, Managing Director
(403) 261-4226 |
Rob King, Director
Tel: (403) 299-6942 |
Jeff Bowron, Director
(403) 261-2377 |
Andrew MacNiven, Vice President
Tel: (403) 299-6914 |
David Baboneau, Associate Director
Tel: (403) 213-7348 |
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Scotia Waterous Inc.
Suite 1800, Scotia Centre
700 – 2nd Street SW
Calgary, Alberta T2P 2W1
Main : (403) 265-8077
Fax : (403) 269-8355 |
RBC Capital Markets
Suite 1100
888 – 3rd Street SW
Calgary, Alberta T2P 5C5
Main : (403) 299-7111
Fax : (403) 299-6900 |
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