2004

February 2004
Corporate Presentation
February 2004
TLM’s mission
Value creation
in the upstream business
TLM’s strategy
|
Diversity of proven basins
|
Operate; high working interests
|
Shorten lead times
|
Upstream
February 2004
2004 Plans & Objectives
Production
2003*
2004**
204
1,089
210-232
1,230-1,275
Total (mboe/d)
398
415-445
Production/share
1.09
1.19-1.27
Oil & liquids (mbbls/d)
Natural Gas (mmcf/d)
640 gross (428.5 net) wells in
North America
| 118 gross (42 net) wells
International
| Expected unit operating cost
$7.05/boe, excludes midstream
|
(excludes Sudan)
2004 Capital Spending
$2,350 Million
* Preliminary (includes 13,000 bbls/d from Sudan)
** Estimated
Estimated 2004 Production (mboe/d)
$610
202-207
129-144
$605
$1,135
70-78
North America
North Sea
Southeast Asia
14-16
North America
Algeria
North Sea
Rest of World
Exploration 31%
Development 69%
February 2004
2004
A unique set of assets
|
|
North America
Norway
Norway
New
New acreage
acreage
st
st
&& 11 drilling
drilling
Positioned
Positioned for
for 335%
5% p.a.
p.a. growth
growth in
in
North
America
North America
North Sea
Growing
Growing US
US
production
production
Colombia
Colombia
high
high impact
impact
exploration
exploration
Cash Generator
Production Growth
Exploration
East
East Coast
Coast
evaluation
evaluation
high impact exploration potential”
Algeria
Algeria
continued
continued
development
development
Trinidad
Trinidad
development
development
underway
underway
Caribbean
Latin America
|
5-10% production growth through
2006
Strong balance sheet
“Positioned for near term growth with
2004
2004 drillng
drillng
program
program leads
leads to
to
growth
in
2005
growth in 2005
Alaska
Alaska
11stst drilling
drilling
|
Large drilling inventory
Record spending
Qatar
Qatar –– 11stst
well
well in
in 2005
2005
Middle East
North Africa
Vietnam
Vietnam
continued
continued
exploration
exploration
PM-3
PM-3 production
production
PM-305
PM-305
development
development
Indonesia
Indonesia
new
new gas
gas
sales
sales
Southeast Asia
February 2004
North America and North Sea generate
significant free cash flow
C$ millions
2003 Preliminary
2004 Estimate
1800
1800
1200
1200
600
600
North America
North Sea
Cash Flow
Indonesia
North America
Exploration and Development Spending
Cash flow figures are before allocation of corporate expenses
2004 assumptions: US $25/bbl WTI, Nymex Gas US$4.75/mmbtu; US$/Cdn $ 0.73
North Sea
Indonesia
Aquisitions
February 2004
Core Cash
Generating
Areas
February 2004
Deep gas focus in Canada
2004 North America
| $1.13 billion spending
| 640 well drilling program
|
|
Monkman
Grande Prairie
Greater Arch/
Deep Basin Edson Area
Monkman/
Monkman/ Foothills
Foothills
245
245 mmcf/d
mmcf/d
58
58 wells
wells (36
(36 net)
net)
$290
$290 mm
mm spending
spending
Talisman Interests
Gas Pipeline
Edson
Northern
Alberta
Foothills
Oil Pipeline
Gas Plant
2004 possible wells
Erith
Erith Pipeline
Pipeline
Central
Alberta
Foothills
885-905 mmcf/d
54,000-56,000 bbls/d
Greater
Greater Arch/Deep
Arch/Deep Basin
Basin
235
235 mmcf/d
mmcf/d
141
141 wells
wells (86.6
(86.6 net)
net)
$230
$230 mm
mm spending
spending
Edson
Edson Area
Area –– Bigstone,
Bigstone,
Wild
Wild River,
River, Whitecourt
Whitecourt
225
225 mmcf/d
mmcf/d
114
114 wells
wells (85.5
(85.5 net)
net)
$255
$255 mm
mm spending
spending
February 2004
Foothills Schematic
Seismic Example
Exploration by
Horizontal Drilling
Well Trajectory
Average:
Well depth
Reserves/well
Well cost
Production/well
TLM working interest
12,000 ft.
15-25 bcf
C$6-8 million
8-10 mmcf/d
80% operated
February 2004
Edson Area – Low Risk Multi-zone Potential
Typical:
Typical:
Shallow
Shallow
Well
Well depth
depth
Reserves/well
Reserves/well
Well
Well cost
cost
Production/well
Production/well
TLM
TLM working
working interest
interest
1,500
1,500 ft.
ft.
3+
3+ bcf
bcf
C$2-3
C$2-3 mm
mm
1.5
1.5 mmcf/d
mmcf/d
75%
75%
February 2004
Complementary Midstream Operations
Vista
Musreau
2004 spending $50 million
Vista
Cutbank
Vista Cutbank
Strategic
Advantage
Potential 2 - 3 tcf
remaining in an
under explored area
of the WCB
Lynx Pipeline
Lynx
Tie in Northern
Alberta Foothills
production
Erith Pipeline
Capacity is 75
mmcf/d of raw gas,
expandable to 100
mmcf/d
Exploration Fairway
Total Edson and Deep Basin
potential 25 tcf: 3-5 tcf TLM capture
Erith Pipeline
February 2004
Appalachia
Keuka Lake
Seneca Lake
Hakes
Hakes
Testing
Testing
SRA3#1
SRA3#1
Drilling
Drilling
Steuben
Apenowich
Susp. Gas
406,000 net acres
{
{ Trenton-Black River play Talisman potential 500 bcf
{
{ 10 bcf/well potential (largest 50
bcf)
{
{ 30 mmcf/d behind pipe
{
{ 2004 - 80 + mmcf/d production
{
{ C$85 mm capital spending
{
{ 11 wells planned in 2004
{
{ 50+ locations
{
{
Cayuga Lake
Ithaca
Schuyler
Watkins Glen
Wonderview
Tompkin
Wonderview
Drilling
Drilling
Ganung
Ganung Hz
Hz
Tested
Tested at
at 2.5
2.5 mmcf/d
mmcf/d
New York
Andrews
Andrews #1
#1
Tested
Tested at
at 18
18
mmcf/d
mmcf/d
Reed Evaluating
excellent early
indicators
Hammond
Hammond
Drilling
Drilling
Tioga
Konstantanides
Konstantanides Hz
Hz
Tested
Tested at
at 10.5
10.5 mmcf/d
mmcf/d
Pennsylvania
Henkel#1
Henkel#1
On
On production
production Jan
Jan 28/03
28/03
Well
Well peaked
peaked at
at 13
13 mmcf/d
mmcf/d
2003 Locations
Fortuna Lease
Producing Wells
Producing Pools
2004 Locations
February 2004
Appalachia
February 2004
North America – surplus cash, 3-5% natural gas
Gas Production Forecast
growth
mmcf/d
{
{
{
{
{
{
{
{
3-5% per annum gas
growth 2004-2006
202-207 mboe/d production
in 2004 – 73% gas
10 tcf potential in our areas
Sustainable - 7 million net
acres of land
650 well program
High working interest and
infrastructure
Deeper focus
77% of spending on gas
11% PUD’s
910-950
885-905
863*
2003
2004**
2005**
2006**
*preliminary ** estimated
2003-2006 Gas Growth Core Areas*
50.0
*2006 forecast volumes less 2003 actual
Incremental Growth mmcf/d
{
935-995
40.0
30.0
20.0
10.0
0.0
USA
S. Alberta
Foothills
Deep
Basin
Edson
Alberta Bigstone
Foothills
February 2004
North Sea Operations
February 2004
Central North Sea – core hubs, high netbacks,
lots of opportunity
2003 Netbacks
Flotta
Brae
16 billion boe yet to find
In the Central North Sea
Claymore
Blake
Beatrice
SCOTLAND
Ross
Saltire MacCulloch
Highlander
Tartan
Petronella
IVRR
Hannay
Buchan
Nigg Bay
39.72 38.28
Piper
Rubie
Renee
12.46
Balmoral
Beauly
8.22
4.44
Andrew
27.34
25.62
St. Fergus
Talisman Interests
|
New Acreage
|
Oil Field
|
Gas Field
|
Oil Pipeline
|
Gas Pipeline
North
North.
Sea vs America
Oil
Gas
Cruden Bay
109,000-122,000 boe/d liquids
Aberdeen
120-130 mmcf/d natural gas
$605 million capital spending
8 exploration wells
25 development wells
Acorn
Gyda
Beechnut
Halley
Fulmar
Clyde
Orion
February 2004
North Sea - 2004 exploration program
Cardhu
Cardhu 14/20b
14/20b
WI:
WI: 100%
100%
Flotta
North
North Saltire
Saltire 15/17
15/17
WI:
WI: 60%
60%
Brae
Piper
Skate
Skate 13/29b
13/29b
WI:
WI: 80%
80%
Claymore
Blake
SCOTLAND
Ross
Beatrice
Saltire MacCulloch
Highlander
Tartan
Petronella
IVRR
Hannay
Buchan
Nigg Bay
St. Fergus
Rubie
Renee
J-5
J-5 Appraisal
Appraisal
WI:
WI: 94%
94%
Cruden Bay
Talisman Interests
New Acreage
Balmoral
Beauly
Andrew
Roisin
Roisin 15/27b
15/27b (lower)
(lower)
WI:
WI: 44%
44%
Jenny
Jenny 30/13c
30/13c
WI:
WI: 35%
35%
Aberdeen
Oil Field
Gas Field
Oil Pipeline
Gas Pipeline
Delta30/17b
Delta30/17b
WI:
WI: 95%
95%
Acorn
Beechnut
Halley
Gyda
Fulmar
Clyde
Orion
February 2004
Central North Sea – 2004 development
drilling program
Claymore
Claymore
••14/19
14/19
••14/20b
14/20b
Flotta
Piper
Piper
••Iona
Iona
Blake
SCOTLAND
Ross
Buchan
St. Fergus
Cruden Bay
Talisman Interests
New Acreage
Oil Field
Gas Field
Oil Pipeline
Gas Pipeline
Buchan
Buchan
••Tweedsmuir
TweedsmuirJ1
J1
••J1
Development
J1 Development
••J5
J5Development
Development
Rubie
Renee
Balmoral
Beauly
Quad
Quad16
16
••Balmoral
Balmoral
••Cyrus
CyrusC3
C3
••Andrew
AndrewA17
A17
Andrew
Alba
Alba
••Alba
AlbaANP
ANP
••Alba
AlbaAXS
AXS
Aberdeen
Non Core Area
• Wytch Farm (x3)
Netherlands
• K4B/K5A, K5B
• F16E
25 Development wells in 2004
Tartan
Tartan
••T11
T11S/T
S/T
Saltire MacCulloch
Highlander
Tartan
Petronella
IVRR
Hannay
Nigg Bay
Brae
Piper
Claymore
Beatrice
Brae
Brae
••SNC
SNCBrae
Brae
Acorn
Gyda
Gyda
••Gyda
GydaAttic
Attic
••Gyda
GydaDowndip
Downdip
••Gyda
GydaCCSand
Sand
Gyda
Beechnut
Halley
Fulmar
Clyde
Orion
February 2004
Norway
|
Repeating UKCS strategy
|
Less mature than UKCS
(opportunities 50-200 mmbbls)
|
Early entry as Norway opens
up to independents
|
Gyda reserves US$ 3.70/boe
|
>7,000 boe/d (TLM share)
|
|
20,000+ boe/d in 2006
| 8 infill wells identified
| Potential to add gas lift
Good exploration potential
| Kark prospect
| Hummer prospect
| Open Licence Round
Tax Shield for Exploration
|
TLM operator (61%)
|
7/8
Talisman Interests
Oil Field
Gas Field
Prospect
Oil Pipeline
Gas Pipeline
Krabbe
7/11
Mime
Ula
Cod
Tambar 2/1
1/2
Blane
GYDA
Albuskjell
Tor
Ekofisk
CLYDE
ORION
February 2004
South East Asia
February 2004
Southeast Asia – a growing core area
VIETNAM
Block
Block 46
46
Block
Block PM-3
PM-3 CAA
CAA
Malaysia/Vietnam 2004
| 21,000-25,000 bbls/d oil and liquids
| 90-100 mmcf/d natural gas
| $250 million spending
| 5 exploration wells
| 32 development wells
Block
Block PM-305
PM-305
Kuala
Lumpur
Port Dickson
Duri
INDONESIA
SUMATRA
MALAYSIA
Singapore
Batam Island
Jambi
KALIMANTAN
Balikpapan
Talisman Interests
Tanjung Raya
Corridor
Corridor
Oil Field
Ogan
Gas Field
Komering
Gas Pipeline
Oil Pipeline
Jakarta
Proposed Pipeline
Potential Malaysia Pipeline
Under Construction
Indonesia 2004
| 12,000-13,000 bbls/d oil & liquids
| 135-140 mmcf/d natural gas
| $65 million spending
| 8 wells
Madura
Madura
February 2004
PM-3 CAA/Block 46
Area Exploration Potential
BK-C WHRP
BK-A LWS
Block 46/02
NORTH
NORTH BUNGA
BUNGA PAKMA
PAKMA
Successful
Successful Appraisal
Appraisal
NORTH
NORTH BUNGA
BUNGA ORKID
ORKID
Oil
Oil &
& Gas
Gas Discovery
Discovery 70
70 mmboe
mmboe
North
Bunga
Pakma
NW Bunga Pakma
Bunga Orkid
Bunga Kertas
BR-A CPP
BR-C WHRP
Gas Export Line
toResak
Legend
SW
Bunga Orkid
Bunga Lawang
West
Bunga Matahari Bunga Matahari
Tam
Tam Giang
Giang
18mmboe
18mmboe
COS
COS 1:2
1:2
Song Doc
Bunga Seri Pagi
Bunga Kantan
BK-A
OIL (O)
GAS (G)
WATER INJECTION (WI)
GAS LIFT
BK-C
East Bunga Kekwa
CAI
CAI RANG
RANG
37mmboe
37mmboe
COS
COS 1:5
1:5
West
Bunga Kekwa
NBR
PM-3 CAA
Future
BR-D
CO
2Removal
Compression
Facility
(BR-E)
Annexe
HOA MAI
Low CO2 Gas Discovery
84 bcf
46 Cai Nuoc
BUNGA
BUNGA SEMARAK
SEMARAK API
API
25mmboe
25mmboe COS
COS 1:4
1:4
Future
Gas Export Line
to VIETNAM
PLEM
SONG
SONG DOC
DOC 1X
1X
Oil
Discovery
Oil Discovery
Under
Under Evaluation
Evaluation
East
Bunga Orkid
Bunga Pakma
BR-B WHRP
EAST
EAST BUNGA
BUNGA ORKID
ORKID
Successful
Successful Appraisal
Appraisal
North Bunga Orkid
WEST
WEST BUNGA
BUNGA ORKID
ORKID
20-30
20-30 mmboe
mmboe COS
COS 1:2
1:2
BS-A WHRP
FSO
BRA-CPP
Bunga Seroja
BUNGA
BUNGA TANJUNG
TANJUNG
D&A
D&A
BR-C
East
Bunga Raya
West
Bunga Raya
Legend
Oil Field
Gas Field
Prospects
BUNGA
BUNGA TULIP
TULIP
Oil
Oil Discovery
Discovery
Drilling
Drilling
Leads
Bunga Daisi
0
5
10
Kilometers
15
2003 Wells
2004
Potential
Sliver BlockLocations
February 2004
PM-305 Exploration Potential
REVENUE DISTRIBUTION:
1%
19%
27%
Drivers:Drivers:- Economic
Economic hurdle
hurdle –– 15
15 mmbbls
mmbbls
-- Fast
Fast track
track development:
development: 22 years
years from
from
discovery
discovery to
to first
first production
production
Contractors post tax
SOUTH ANGSI OIL DISCOVERY
TOP I-35 STRUCTURE MAP
9%
Government
Development Capex
44%
-
South
South Angsi-1
Angsi-1 St2
St2
-
Opex
Exploration Capex
-
IRONG
TAPIS
South
South Angsi-1
Angsi-1
Discovery
Discovery well
well
BEKOK
SELIGI
NW BESAR
NW. BESAR
PULAI
OPHIR
South
South Angsi-1
Angsi-1 St1
St1
o
o
o
o
Tested
Tested 11,300
11,300 bbl/d
bbl/d Oil
Oil
Reserves
Reserves 45
45 mmbbls*
mmbbls*
Project
Project Sanction
Sanction 4Q
4Q 2003
2003
Production
Production startup
startup 2Q
2Q 2005
2005
20,000
20,000 bbls/d
bbls/d **
** TLM
TLM share
share 60%
60%
LEDANG
ANGSI
PM-305
BESAR
S. ANGSI
HIJAU
SOTONG
PM-307
(Carigali)
PROSPECTS
PROSPECTS &
& LEADS
LEADS Resource
Resource Potential
Potential
PM-12
DUYONG
(Carigali) Oil
Oil (mmbbls)
(mmbbls)
Unrisked
Risked
Unrisked
Risked
165
165
44
44
February 2004
Malaysia/Vietnam Production
60,000
Gas Sales Profile* (mmcf/d)
First Gas – Nov 2003
300
250
50,000
Exploration
Potential
200
Risked Exploration Potential
PM-305 South Angsi
PM-3 CAA/Block 46 CN Upside
PM-3 CAA/Block 46-CN
150
BOE/day
100
50
03 05 07 09 11 13 15 17 19 21 23
40,000
30,000
Oil Production Profile (mbbls/d)
First Oil – Sept 2003
90
Exploration
Potential
80
70
20,000
60
PM-305 (TLM 60%)
50
10,000
PM-3 CAA (TLM 41%)
40
30
0
20
2001
10
03
05
07
09
11
13
15
17
19
21
23
2002
2003* 2004* 2005* 2006*
* estimates
February 2004
Indonesia - long-life gas reserves and
growing demand
VIETNAM
Talisman Share 36%,as of 2003-01-01 (bcf)
Field
P
2P
3P___
Block 46
PM-3 CAA
PM-305
Kuala
Lumpur
Port Dickson
Duri
Tanjung
Pelepas
Singapore
Batam Island
Jambi
Corridor
1,300
3,240
Others (12 Fields)
470
800
1,760
1,140
2,100
5,000
Large gas markets
Growing demand
MALAYSIA
SUMATRA
670
Total Corridor
INDONESIA
TGI owns 40% of
infrastructure
(TLM 15%)
Suban
KALIMANTAN
Balikpapan
| 300 mmcf/d production
| 10 tcf reserves
| Facilities expansion
Ogan
Komering
Tanjung Raya
Talisman Interests
Duri Pipeline
Singapore Pipeline
Jakarta
Madura
Potential Malaysia Pipeline
Pipeline
Proposed Pipeline
New gas discoveries
February 2004
Corridor Gas Production
mmcf/d
Corridor PSC Gas Sales - Net TLM
350
300
250
200
150
100
50
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Duri
Singapore
West Java
Other Markets
February 2004
Corridor to West Java Gas Pipeline
Jambi Merang
Suban
Suban
ConocoPhillips
Grissik
Grissik
Not Funded
Limau
(Pertamina
)
Musi Singa
-1
(Pertamina
) (Exspan
)
Bengkulu
Palembang
Palembang
Prabumulih
Prabumulih
South Sumatra
Pagar Dewa
Pagar Dewa
South
Funded By JBIC
Sumatra
Originated
Design
PGN P/L 32”
Proposed
Pipeline
|
Heads of Agreement
for Corridor gas sales
with Pt PLN
(CNOOC)
(bp)
Lampung
Lampung
L.Maringgai
Not Funded
Existing
plants
Cilegon
Cilegon
Java
Jakarta
Jakarta
February 2004
Algeria
Spain
MLN Field Facilities
Morocco
Hassi R’mel
Algeria
Hassi Messaoud
February 2004
Algeria
Ourhoud
NET TLM PRODUCTION
BARRELS/DAY
30000
20000
MLSE FIELD
MLN EXPANSION
MLN
10000
OURHOUD
0
20 09
20 07
20 05
20 03
YEARS
2002 Year End Net TLM Reserves
PROVEN
FIELD
(MMSTB)
PROVEN +
PROBABLE
(MMSTB)
OURHOUD
11.4
15.4
Greater MLN
13.9
42.5
Greater MLSE
TOTAL
15.7
27.3
73.6
MLN
Kermad
MLNW
MLW
MLC
MLSE
February 2004
Trinidad & Tobago : oil development underway,
large exploration potential
Bundeburg
Bundeburg
2004
|
|
|
|
|
|
|
|
|
|
Spending
Spending $170
$170 million
million
Port of Spain
19
19 wells
wells
First
First development
development drilling
drilling
First
First production
production early
early 2005
2005
(100,000
(100,000 bbls/d
bbls/d capacity)
capacity)
Potential
Potential for
for expansion
expansion
Greater
Angostura
Development
15 wells
Major
Seismic
Program
Greater Angostura
Offloading Terminal
Oil Field
Oil Pipeline
Gas Field
Gas Pipeline
Prospect
Talisman Interests
Bimurraburra
Bimurraburra
Puncheon
Puncheon
Angostura-3
Angostura-3
Eastern
Block
TLM 65%
Atlantic
LNG Plant
Delaware-1
Delaware-1
Block 2c
TLM 25%
Howler-1
Howler-1
Block 3a
TLM 30%
Export
Export Pipeline
Pipeline Route
Route
February 2004
Angostura Development
U = undrilled potential
5 km Canteen
2 Attic
0
1 Deposition of Submarine Fans
U
U
"Mega bed" or debris flow unit
U
D
?
C
ANGOSTURA SAND
Canteen-2
Canteen-2
NAVET
INGS
LIZARD SPR
. ..
GUAYA GU
AYARE
Canteen-1
Canteen-1
NAPARIMA HILL
C1
Block
2 Compressional Deformation and Erosion
?
o
Sc
rp
io n
o
Sc
Ri
io
rp
n
dg
ANG-1
KAIRI-1
ARIPO-1
KAIRI-2
?
NARIVA
Aripo-1
Aripo-1
Aripo
-1
Not to scale
Note: This thrust is post-Nariva in age
Complex Structural history
leads to
Multiple compartments
Kairi 3a
Extensio
n
Kairi
-2
Angostura
-1
Block 2c Block 2c
Well positions approximate only
Kairi
-1
Angostura-2
Angostura-2
Angostura
-2
Angostura-1
Angostura-1
ANG-2
U
e
U
CANT-1
U
KairiKairi11
Kairi-2
Kairi-2
3 Subsidence and renewed deposition
CANT-2
U
e
dg
Ri
Canteen
-1
Block 3a
Block 3a
Ridge
A
Canteen
-2
T opaz
B
Ridge
. ..
T opaz
.. . . .. . ..
.. . . .. . ..
?
February 2004
High potential
exploration
February 2004
Colombia: drilling has begun
2004 spending $28 million
Talisman Interests
Other Licences
Oil Pipeline
Palo
Palo Bonito-1
Bonito-1
4Q
Drill
4Q Drill
Gas Pipeline
Altamizal
Block
(30%)
Sipetrol
Operated
Mundo
Nuevo
Block
(30%)
Bogota
Tangara
Block
(30%)
Altimazal-B
Altimazal-B
4Q
4Q Drill
Drill
El
El Encanto-2
Encanto-2
Candelo-1
Candelo-1
Acevedo
Block
(70%)
Huila Norte
Block
Sipetrol (30%)
Operated
February 2004
Qatar: Block 10 – first well early 2005
Al
Al Rayyan
Rayyan Field
Field
400
mmbbls
400 mmbbls oil
oil in
in place
place
North field
Al
Al Shaheen
Shaheen Field
Field
30
B
bbls
oil
30 B bbls oil in
in place
place
Al Shaheen field
North
North Field
Field
900
900 tcf
tcf gas
gas in
in place
place
10
Block
Block 10
10
Concession
Concession granted
granted April
April 12,
12, 2003
2003
784,000
784,000 acres
acres
Prospect
Prospect size
size ~100-300
~100-300 mmbbls
mmbbls reserves
reserves
(3P
(3P unrisked)
unrisked)
|
| 2004
2004 seismic
seismic acquisition
acquisition
|
|
|
|
|
|
Qatar
Doha
Al
Al Khalij
Khalij Field
Field
11 to
to 22 BB bbls
bbls oil
oil in
in place
place
Maydan
Maydan Mahzam
Mahzam
2.2
B
bbl
2.2 B bbl oil
oil in
in place
place
2.4
2.4 tcf
tcf gas
gas in
in place
place
Idd
Idd El
El Shargi
Shargi Field
Field
4.3
B
bbls
4.3 B bbls oil
oil in
in place
place
February 2004
Alaska – first well 1Q 2004
Farm-in Area
Federal Lands
Beaufort1002
SeaArea
Wilderness Area
Bear
Caribou West
Caribou East
Spud January 28
Outlook/Rendezvous
Discoveries
Fox
Talisman Interests
Other Licences
Discoveries
National Petroleum
Reserve Area
Alpine
Field
Mackenzie
River
Delta
February 2004
Current 2004 Hedges
Financial Strength
Total Liquids
|
Net Debt/Cash Flow:
|
Net Debt/Total Cap (%): 37*
|
2004 C$ Sensitivities
|
1.0*
Annual impact of US$0.01 change:
Net income
$21 million
Cash Flow
$35 million
US$ debt offset **
$22 million
* Proforma year end 2003 (year end 2002 – Debt/cash
flow – 1.3, Debt/Total Cap – 46%)
Preferred securities treated as debt
Fixed 11%
Collars 26%
Floating 63%
North American Gas
Fixed 9%
Collars 3%
Floating 88%
** includes translation and capex impact
Hedges include physical contracts
February 2004
We will deliver 5-10% production
per share growth
Exploration
Trinidad
Algeria
Malaysia/Vietnam
Indonesia
North Sea
N.A. Gas
N.A. Oil
mboe/d
387
500-650
up
5-10%
p.a.
0-75
20-30
10-15
up 10-15% p.a.
35
up 3-5% p.a.
55-70
144
60
down 2-3% p.a.
2003E (excluding Sudan)
Colombia, Qatar,
Alaska + other
Onshore/Offshore
PM-3, PM-305, new blocks
50-65
Corridor gas
150-165
Exploration &
Development
131
up 3-5% p.a.
Growth Drivers
165-175
50-55
2008E
Foothills
Appalachia
Deep Basin
Chauvin, Turner Valley
February 2004
Our strategy works: Ten years of success
Production Per Share (boe)
Cash Flow Per Share ($)
21
1.20-1.25
21
19.73
1.05
8% CAGR
0.96
1.09
0.99
18-20% CAGR
17.51
18.48
0.89 0.87
0.80
0.70
0.73
0.63
8.91
0.52
6.71
4.63
5.21
7.29
5.64
3.17
93 94 95 96 97 98 99 00 01 02 03* 04**
Excluding Sudan
Sudan Portion
* preliminary
** estimated
93 94 95 96 97 98 99 00 01 02 03* 04**
* preliminary
** estimated, based on $25-28 WTI,
$4.75-5.50 NYMEX, $0.73-0.77 FX
February 2004
Talisman – strong positioning
|
5-10% production per share
growth 2004 to 2006
|
Strong balance sheet
|
Surplus cash from Canada and
North Sea
|
Incremental production from
Algeria, Malaysia, Indonesia,
Trinidad
|
Highly prospective exploration
portfolio
|
Well positioned globally with a
unique configuration of assets
February 2004
Forward-looking Statements
Cash flow is a non-GAAP financial measure commonly used in the oil and gas industry. It appears as a separate caption
on the Company’s cash flow statements and is reconciled to both net income and cash flow from operations. Cash flow
represents net income before exploration costs, DD&A, future taxes and other non-cash expenses.
This presentation contains statements about oil and gas reserves, outlook of oil and gas prices, estimates of future sales
and production, business plans for drilling, exploration and production, the estimated amounts and timing of capital
expenditures, anticipated operating costs, anticipated future debt levels, royalty rates and exchange rates, or other
expectations, beliefs, plans, goals, objectives, assumptions and statements about future events or performance that
constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of
1995. Forward-looking statements are based on current expectations, estimates and projections that involve a number of
risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Company and
described in the forward-looking statements. Information about such factors is included in the Company’s Annual Report to
securityholders, which is available in the foyer, under the headings "Management's Discussion and Analysis – Liquidity and
Capital Resources", “- Risks and Uncertainties” and “- Outlook”. Information is also available in Talisman’s annual report
on Form 40-F and other reports on file with Canadian and/or US securities regulatory authorities, which are available at
http://www.talisman-energy.com/financials/financials.html.
Note to U.S. Residents
Information presented here and in Talisman’s filed reports is prepared in accordance with Canadian disclosure
requirements, which differ from those in the United States. In particular, reserves reporting requirements and GAAP differ
between the two countries. See the notes to Talisman’s Consolidated Financial statements in the Company’s Annual
Report, as well as information under the headings “Additional Information for US Readers” and “Note to US Readers” for
information concerning significant differences between Canadian and US reporting.
February 2004
Corporate Presentation