Talisman Wins Malaysian Deal - Analyst Blog
29 Maggio 2012 - 4:00PM
Zacks
Talisman Malaysia Limited – an
affiliate of Talisman Energy (TLM) has won a new
production sharing contract (PSC) from the national oil company of
Malaysia – Petroliam Nasional Berhad or PETRONAS.
Per the agreement, Talisman will be
engaged in production, development and enhancement of oil recovery
from the Kinabalu oil fields in Malaysia. The acreage, which
consists of Kinabalu Main, Kinabalu East and Kinabalu Far East
fields and offshore Sabah, consist of several mature fields, with
high development potential.
This is PETRONAS’ first progressive
volume-based" (PVB) PSC that will develop more fields in
Malayasia.
Talisman and PETRONAS intend to
make a capital investment of over $1 billion for the execution of
this contract. Talisman will act as an operator of the field with a
60% working interest, while PETRONAS will control the remaining
40%.
Talisman, which exhibits a
successful record of improving production and boosting the life of
mature fields, remains confident about this contract.
Calgary, Alberta-based Talisman
Energy is a major independent oil and gas exploration and
production company, with operations in North America (primarily
Canada) and several international regions.
We maintain our long-term Neutral
recommendation on the stock. Talisman, which operates in the
industry along with Canadian Natural Resources
Ltd. (CNQ) and Encana Corp. (ECA),
currently, has a Zacks #3 Rank, which is equivalent to a Hold
rating for a period of one to three months.
With this contract, Talisman has
expanded its operation base globally and has strengthened its
footing in the South East Asian energy sector. We believe that the
company is set to take further investment opportunities in this
growing economic region in the coming days.
However, as is the case with other
independent exploration and production companies, Talisman Energy’s
results are directly exposed to oil and gas prices, which are
inherently volatile and subject to complex market forces. Moreover,
the company’s overseas operations remain vulnerable to various
geo-political risks.
CDN NTRL RSRCS (CNQ): Free Stock Analysis Report
ENCANA CORP (ECA): Free Stock Analysis Report
TALISMAN ENERGY (TLM): Free Stock Analysis Report
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