No BLACKOUT In The Energy PROFIT Sector As Another Energy Company Joins The Gravy Train

Talisman profit doubles
Jul. 27, 2006. 09:08 AM
CANADIAN PRESS


CALGARY — Talisman Energy (TSX: TLM) says its second-quarter profit doubled to a record $686 million despite operational problems and it's planning more asset sales this year and next.

Net income for the quarter ended June 30 amounted to 62 cents a share) and compared with $340 million or 31 cents per share a year ago, the Calgary-based company reported Thursday.

Cash flow jumped 15 per cent to $1.14 billion.

"Our major projects are proceeding smoothly," CEO Jim Buckee said in a release.

"We are progressing 10 subsea tiebacks in the North Sea. The largest of these, Tweedsmuir, is 69 per cent complete and should be on-stream towards the end of the first quarter of 2007."

Tweedsmuir is expected to produce over 50,000 barrels a day for Talisman.

"Operationally it was a difficult quarter," Buckee said. ``Compressor failures in Algeria, the North Sea and Canada collectively shut in over 20,000 barrels of oil equivalent per day of production for varying periods. Repairs have been completed in Canada and the other repairs are expected to be completed in four to six weeks."

Buckee said the company is considering "significant" non-core asset sales in Canada and the North Sea over the next six to 12 months.

"Given the appetite in the marketplace, I believe this is an opportune time to monetize some assets which may not be getting full credit in our share price, as well as allowing us to streamline, focus and simplify our operations."

Buckee said the firm is also looking at "exiting a select number of countries where we do not see strategic value. The value of these
exxon profits way up
shell ditto
talisman here ditto
defense companies ditto
insurance might be up


sales could be well over a billion dollars and we intend to use the proceeds to buy back Talisman shares."

In June, Talisman sold a parcel of non-core holdings in Canada for nearly $380 million as the oil and gas producer continued to cull its portfolio in the wake of last fall's $2.5-billion acquisition of Paladin Resources.

In late May, the company announced it had sold a collection of North Sea holdings for $459 million to Houston-based Endeavour International Corp. (AMEX:END)

Production during the quarter averaged about 473,000 boe/d, an increase of six per cent over the second quarter of 2005, but down from 523,000 in the first quarter, largely the result of plant turnarounds and mechanical issues.

Oil and liquids production averaged 252,437 barrels a day, an increase of 10 per cent compared to a year ago. Natural gas production increased two per cent.