Post on 13-Oct-2015
description
Talismans history in Colombia
Entered Llanos Heavy oil belt with four large block awards
2008Huron discovery
2009First exploration block awarded in MagdalenaValley
2000Two blocks awarded in the Llanos Foothills
2001Expanded Llanos position with Foreland Blocks
Niscotablock awarded
Exited Magdalena Valley
Expanded Magdalena Valley position
2007200620052002
2010
BP Colombia acquisition
Three blocks awarded in Putumayo Basin
Akacias discovery
Block 6 Stratigraphic well success
Llanos Foreland farm-out
Talisman in Colombia landholdings
1748752007
ECP (53.7%)
PBR (27.4%)
19.9%Equin(40.6%)RC-4
(Offshore)
1336662007
ECP (53.7%)
PBR (27.4%)
19.9%Equin(40.6%)RC-5
(Offshore)
Equin
9351989ECP (75%)25%Equin(50%)Recetor A
40%
40%
50%
30%
45%
50%
50%
25%
25%
15%
25%
15%
30%
51%
30%
TLM
Llanos basin -
Foothills1434772001TOT (55%)ECP (15%)
MundoNuevo
1633202001ECP (49%)Tangara
461542006TOT (30%)ECP (20%)Niscota
481202010PRE (60%)CAG 6
4659302010PRE (50%)CAG 5
Putumayo basin
491232010PRE (60%)PUT 9
2137092008Cepsa(30%)PRE
(40%)CPO 12
2325152009ECP (55%)CPO 9
2,9565,9122008EPC (50%)TLM (50%)CPE 8
7521,5032008PRE (50%)CPE 6
Llanos basin
Heavy oil
271092007PTA (25%)CEP (50%)El Porton
271092007PTA (25%)CEP (50%)El EdenLlanos basin -
Foreland
181991ECP (66%) TOT (19%)Equin(31%)
Rio Chitamena
16641992ECP (75%)Equin(50%)Piedmonte
5351988ECP (66%) TOT (19%)Equin(31%)Cusiana
TLM Net Acres (000s)
Gross Acres (000s)
Award DatePartnersOperatorsBlock NameArea
TLM Colombia Landholdings
Block OperatorLlanos Foothills
Niscota EcopetrolTangara EcopetrolMundo Neuvo Ecopetrol
Llanos Light oil
El Eden CepsaEl Porton CepsaEquin Equin
Llanos Heavy Oil
CPE 6 Pacific RubialesCPE 8 TLMCPO 9 TLM > EcopetrolCPO 12 Pacific Rubiales
Putumayo Basin
CAG 5 Pacific RubialesCAG 6 Pacific RubialesPUT 9 Pacific Rubiales
Offshore
Equin Equin
12
3
9
45
6
10
7
8
1112
13
TLM blocksFarmoutblocksEquin blocks
123
456
789
10
111213
14
14
CaribbeanSea
March 2011 www.talisman-energy.com Page 1 of 19
Talisman Colombia - landholdings
Equin 4 development blocks 2 offshore blocks
Llanos basin Foothills 3 blocks Foreland 2 blocks Heavy oil 4 blocksPutumayo basin 3 blocks
Venezuela
Brazil
Ecuador
Peru
Colombia
Atlantic Ocean
PacificOcean
Llanos
Putumayo
Guajira
Mag
dale
na
Catatumbo
PacificCoast
SinuSan Jacinto
TLM blocksEquin blocksBasinRefineryOil pipelines
Foothills Trend Foreland Trend Heavy Oil Trend & Putumayo Basin
7 blocks, 0.3 million net acres 4 blocks, 0.1 million net acres 7 blocks, 4.7 million net acres
Llanos and Putumayo basins multiple play trend geology
March 2011 www.talisman-energy.com Page 2 of 19
Stratigraphy of Llanos and Putumayo basins
Basin geology and structure provides rich source, reservoir and trap (seal) conditions
Traps variety of simple to complex (Foothills) structural and stratigraphic
Rich interbedded source rocks generated large quantity of oil
High quality reservoirs mostly clastic (sandstone)
Colombia landscape
FoothillsFoothills
Llanos ForelandLlanos Foreland Block CPEBlock CPE--88
EquiEquinn
March 2011 www.talisman-energy.com Page 3 of 19
Talisman Colombia partners
Partnered with four of Colombias best producers and operators
Talismans position in Colombia
Foothills Equin Niscota Heavy oil trend CPO 9 CPE 6 CPO 12 CPE 8 Putumayo basin CAG 5 CAG 6 PUT 9
Venezuela
Brazil
Ecuador
Peru
Colombia
Atlantic Ocean
PacificOcean
Llanos
Putumayo
Guajira
Mag
dale
na
Catatumbo
PacificCoast
SinuSan Jacinto
TLM blocksEquin blocksBasinRefineryOil pipelines
March 2011 www.talisman-energy.com Page 4 of 19
Foothills: Equin Energia Limited
US$858 million spent to acquire 49% of BP Exploration (Colombia) Limited; Ecopetrol acquired remaining 51%
Equin, recently renamed company, continues to operate the assets
Provides 12,000 to 15,000 boe/d 2011 production (65% liquids) net to TLM
Existing exploration and development upside on blocks
Interest in strategic infrastructure and export oil pipeline (OCENSA)
Attractive acquisition metrics (Net to TLM) $12/boe 1P (47 mboe) $9/boe 2P (60 mboe)
TLM blocksFarmout blocksEquin blocksEcopetrol blockGas fieldsOil fieldsProspect/leadsOil/gas condensatediscoveriesGas pipelinesOil pipelines
Huron
FlorenaPautoSur
Cusiana
Piedemonte
Recetor A
RC-4
RC-5Caribbean
Sea
Foothills: Equin Energia Limited next steps
Potential synergies with adjacent exploration blocks
Piedemonte - expansion of base project
Offshore - drilling in 2012
OCENSA Pipeline Expansion to 560 mbbls/d 2011 Expansion to 660 mbbls/dexpected to be sanctioned in 2011/2012
TLM blocksFarmout blocksEquin blocksEcopetrol blockGas fieldsOil fieldsProspect/leadsOil/gas condensatediscoveriesGas pipelinesOil pipelines
Huron
FlorenaPautoSur
Cusiana
Piedemonte
Recetor A
RC-4
RC-5Caribbean
Sea
March 2011 www.talisman-energy.com Page 5 of 19
Foothills: Foothills: NiscotaNiscota block block -- HuronHuron--1 discovery1 discovery
4,900 bbls/dcondensate flow test, discovered 2009
Combined rate 3 zones
Light crude oil 42 API
On trend with Equin blocks
Niscota BlockNiscota 3D
Huron Discovery
Oil Field
Condensate / Gas Field
Prospect/Lead
40 km
Piedemonte
Cusiana
Recetor A
Equin blocks
Volcanera 1
Sur
HuronHuron--1 1 Niscota Niscota
20% Hocol (Ecopetrol), Operator30% Talisman50% Tepma/Total
March 2011 www.talisman-energy.com Page 6 of 19
Mirador Outcrop in Typical Thrust Fold
Scale:Scale:MIMI--1717
HelicopterHelicopter
NW SEHuron
Schematic structural cross section
Foothills structures
Foothills: Niscota block
Drill Huron-2 in 2011 and Huron-3 in 2012
Feasibility study to determine optimal development for Huron
Working with Equin to find options for processing early production in Piedemonte
Advancing with 3D seismic operations to further evaluate exploration potential
March 2011 www.talisman-energy.com Page 7 of 19
Foothills Equin Niscota Heavy oil trend CPO 9 CPE 6 CPO 12 CPE 8 Putumayo basin CAG 5 CAG 6 PUT 9
Talismans position in Colombia
Venezuela
Brazil
Ecuador
Peru
Colombia
Atlantic Ocean
PacificOcean
Llanos
Putumayo
Guajira
Mag
dale
na
Catatumbo
PacificCoast
SinuSan Jacinto
TLM blocksEquin blocksBasinRefineryOil pipelines
Heavy oil trend
Major under explored heavy oil belt 4.2 million net acres (30 - 50% WI) Partnered with Pacific Rubiales and Ecopetrol
Tumaco
CAG 5
PUT 9CAG 6
CPE 8CPO 12
CPE 6
CPO 9
Rubiales Field
PutumayoBasin
LlanosBasin
Colombia
Ecuador
TLM blocksFarmout blocksEquin blocksExport terminalGas pipelinesOil pipelines
March 2011 www.talisman-energy.com Page 8 of 19
Heavy oil trend: CPO 9 block
Tumaco
CAG 5
PUT 9CAG 6
CPE 8CPO 12
CPE 6
Rubiales Field
PutumayoBasin
LlanosBasin
Colombia
Ecuador
CPO 9
Akacias 1
TLM blocksFarmout blocksEquin blocksOil discoveryExport terminalGas pipelinesOil pipelines
CPO 9 Akacias-1
Eocene T2 San FernandoDeviated Well
Ecopetrol 55% (Operator) Talisman 45%
1,250 1,250 bbls/dbbls/d testtest11,700 ft depth11,700 ft depth99 API gravityAPI gravity 20
March 2011 www.talisman-energy.com Page 9 of 19
1000000 1020000 1040000 1060000 1080000
9000
0092
0000
9400
00
7330'0"W7340'0"W7350'0"W740'0"W7410'0"W
40'
0"N
350
'0"N
340
'0"N
330
'0"N
Block9_leads_afe.mxd
Akacias-1
3D
Block CPO 9
Heavy oil trend: CPO 9 Heavy oil trend: CPO 9 AkaciasAkacias--1 discovery & prospects1 discovery & prospects
3DSeismic
Humadea
3DSeismic
Chichimene: ~24 mboe/d (2010E)~59 mboe/d (2011E)
Castilla: ~94 mboe/d (2010E)~117 mboe/d (2011E)
Production data source: Ecopetrol
Heavy oil trend: CPO 9 Heavy oil trend: CPO 9 illustrative illustrative crosscross--section Akacias oil discovery section Akacias oil discovery
SECPO 9 Ecopetrol 55%, Talisman 45% Cubarral Block Ecopetrol 100%
Eocene T2 UnitEocene T2 Unit
NWAkacias-1
22
March 2011 www.talisman-energy.com Page 10 of 19
Heavy oil trend: CPE 6
TLM blocksFarmout blocksEquin blocksExport terminalGas pipelinesOil pipelines
Tumaco
CAG 5
PUT 9CAG 6
CPE 8CPO 12
CPE 6
Rubiales Field
PutumayoBasin
LlanosBasin
Colombia
Ecuador
CPO 9
Guairuro1-5
Guairuro Stratigraphic WellsBlock CPE-6 Southern Llanos
Pacific 50% (Operator)Talisman 50%
Heavy oil trend: CPE 6
24
March 2011 www.talisman-energy.com Page 11 of 19
Heavy oil trend: CPE 6 structural & stratigraphic traps
NW SE
~1000m
NW SE
~1000m
Paleozoic Basement
C9 Sands
Onlap
Onlap
Onlap
Incised valley traps sand reservoir
Basel Carbonera Reservoir
Heavy oil trend: CPE 6 block
Drill final Technical Evaluation Agreement (TEA) commitment well 1H 2011
Convert block from TEA to E&P in 2011
Obtain environmental permits
Drill appraisal wells and flow test the reservoir
Acquire appraisal 3D seismic
March 2011 www.talisman-energy.com Page 12 of 19
Heavy oil trend: CPO 12
TLM blocksFarmout blocksEquin blocksExport terminalGas pipelinesOil pipelines
Tumaco
CAG 5
PUT 9CAG 6
CPE 8CPO 12
CPE 6
Rubiales Field
PutumayoBasin
LlanosBasin
Colombia
Ecuador
CPO 9
CPO 12: Talisman 30%, Pacific Rubiales 40% (operated), Cepsa 30% 2D seismic acquired in 2010 Exploring for similar heavy oil targets as Rubiales
Heavy oil trend: CPE 8
CPE 8: Talisman 50% - operator, Ecopetrol 50% Seismic operation commenced late 2010 Exploring for similar heavy oil targets as Rubiales Drilling stratigraphic wells late 2011 early 2012
TLM blocksFarmout blocksEquin blocksExport terminalGas pipelinesOil pipelines
Tumaco
CAG 5
PUT 9CAG 6
CPE 8CPO 12
CPE 6
Rubiales Field
PutumayoBasin
LlanosBasin
Colombia
Ecuador
CPO 9
March 2011 www.talisman-energy.com Page 13 of 19
Putumayo Basin
40 mboe/d current Industry production in Putumayo Basin Blocks granted by 1Q/2011 (1 TEA / 2 E&P) Partnered with Pacific Rubiales Commitments of approximately US$56 million net over next 2 years
TLM blocksFarmout blocksEquin blocksExport terminalGas pipelinesOil pipelines
Tumaco
CAG 5
PUT 9CAG 6
CPE 8CPO 12
CPE 6
CPO 9
Rubiales
PutumayoBasin
LlanosBasin
Colombia
Ecuador
OTA
Colombia established oil and gas infrastructure
Established transport infrastructure with capacity constraints being addressed OCENSA being upgraded, Bicentanario pipeline under construction
Transgas
Ocensa
OTA
ODL
ODC
OBC
OAM
Cao Limn
Apiay El Porvenir
March 2011 www.talisman-energy.com Page 14 of 19
2010 transformational year for Talisman Colombia
2010 success BP Colombia acquisition Akacias discovery Block CPE 6 stratigraphic drilling Huron discovery being appraised Block CPE 8 seismic program initiated Three blocks acquired in Putumayo basin Objective - build new core area of 50,000 boe/d
Partnered with the right companies
Capable, established operating company (Equin/OCENSA)
March 2011 www.talisman-energy.com Page 15 of 19
Key Historical Data
2010 2009 2008 2007 2006 2005Daily production, before royalties
Oil & liquids (mbbl/d) 189 211 224 241 262 250 Natural gas (mmcf/d) 1,367 1,283 1,247 1,265 1,342 1,319 Barrels of oil equivalent (mboe/d) 417 425 432 452 485 470
Daily production, after royaltiesOil & liquids (mbbl/d) 160 181 187 203 220 216 Natural gas (mmcf/d) 1,161 1,088 992 1,017 1,091 1,043 Barrels of oil equivalent (mboe/d) 353 362 352 373 402 390
Proved reserves, before royaltiesOil & liquids (mmbbl) 510 532 545 749 767 736 Natural gas (bcf) 5,237 5,273 5,338 5,464 5,403 5,417 Barrels of oil equivalent (mmboe) 1,383 1,411 1,434 1,660 1,667 1,639
Drilling activity (gross wells)North America - Oil & liquids 65 5 138 128 194 171 North America - Natural gas 243 154 286 288 496 495 North America Total 308 159 424 416 690 666 North America - Drilling success (%) 100 98 100 98 98 97
International - Oil & liquids 57 59 73 73 65 51 International - Natural gas 11 12 37 11 18 5 International Total 68 71 110 84 83 56 International - Drilling success (%) 85 86 89 79 83 81
Net undeveloped land (thousands of acres) North America 6,940 9,145 9,786 9,559 7,837 5,588 International 29,673 26,208 16,443 12,948 11,048 13,484 Total 36,613 35,353 26,229 22,507 18,884 19,072
March 2011 www.talisman-energy.com Page 16 of 19
Key Historical Data
2010 2009 2008 2007 2006 2005Ratios and Key Indicators (C$ millions, except per share)
Cash flow 3,058 3,961 6,163 4,327 4,748 4,672 Net Income 648 437 3,519 2,078 2,005 1,561 Per Common Share
Cash flow 3.00 3.90 6.06 4.19 4.35 4.23 Net Income 0.64 0.43 3.46 2.01 1.84 1.41
Exploration & development spending 3,953 4,245 5,106 4,449 4,578 3,179 Acquisitions 1,562 438 452 317 204 3,170 Dispositions 2,347 2,772 442 1,477 872 22
Average Royalty Rate (%) 16 15 18 17 17 17 Unit operating costs (C$/boe) 12.80 12.91 13.57 12.14 9.98 8.41 Unit DD&A (C$/boe) 15.21 17.36 16.44 14.74 12.22 10.88 Return on capital employed (%) * 5.9 4.1 26.6 18.0 19.3 19.1
Balance Sheet Info (C$ millions)Property, plant & equipment ** 18,804 16,431 18,540 16,363 16,655 13,806 Total assets 24,193 23,618 24,275 21,420 21,481 18,354 Long-term debt (including current portion) 4,181 3,780 3,961 4,862 4,560 4,263 Shareholders' equity 10,479 11,111 11,150 7,963 7,307 5,729
Share information, adjusted to reflect stock splitsAverage common shares outstanding (millions) 1,018 1,019 1,019 1,019 1,064 1,099 TSX trading info
Average daily trading volume (thousands) 5,042 4,066 3,727 2,951 3,254 3,143 High (C$) 22.32 20.17 24.92 22.67 24.84 20.83 Low (C$) 15.71 9.92 8.28 16.90 16.12 10.50 Close (C$) 22.12 19.69 12.18 18.39 19.80 20.53
NYSE trading infoAverage daily trading volume (thousands) 3,120 3,998 4,248 2,115 2,139 1,384 High (US$) 22.43 19.51 25.71 22.08 21.62 18.08 Low (US$) 14.70 7.97 6.42 15.04 14.21 8.36 Close (US$) 22.19 18.64 9.99 18.52 16.99 17.63
Commodity InformationWTI (average US$/bbl) 79.53 61.79 99.65 72.31 66.25 56.70 NYMEX gas (average US$/mmbtu) 4.39 4.05 8.95 6.92 7.26 8.55 US$/C$ exchange rate (year end) 1.01 0.96 0.82 1.01 0.86 0.86
Realized product pricing, before hedging activitiesOil & liquids (C$/bbl) 80.52 67.36 96.43 75.00 69.82 62.78 Natural gas (C$/mcf) 5.76 5.29 9.01 6.99 7.20 8.30
* Return on capital employed = Net income plus tax effected interest / (average shareholders' equity + average net debt). ** 2009 restated for continuing operations.
March 2011 www.talisman-energy.com Page 17 of 19
Advisories
Forward-Looking Information This presentation contains or incorporates by reference information that constitutes forward-looking information or forward-looking statements (collectively forward-looking information) within the meaning of applicable securities legislation. This forward-looking information includes, but is not limited to, statements regarding: expected expansion of Piedemonte and expansion and sanction of OCENSA; planned drilling and exploration activities by both Talisman Colombia and Equin Energia Limited; production objectives; and planned investments and activities in the Putumayo Basin. The forward-looking information is based on Talismans 2011 capital program as announced on January 11, 2011. Talisman set its 2011 capital expenditure plans assuming: (1) Talismans production in 2011 will be approximately 5-10% greater than 2010, excluding the BP Colombia acquisition; (2) a WTI oil price of approximately US$75/bbl; and (3) a NYMEX natural gas price of approximately US$4/mmbtu. Information regarding business plans generally assumes that the extraction of crude oil, natural gas and natural gas liquids remains economic. Undue reliance should not be placed on forward-looking information. Forward- looking information is based on current expectations, estimates and projections that involve a number of risks which could cause actual results to vary and in some instances to differ materially from those anticipated by Talisman and described in the forward-looking information contained in this presentation. The material risk factors include, but are not limited to: the risks of the oil and gas industry, such as operational risks in exploring for, developing and producing crude oil and natural gas, market prices and demand and unpredictable facilities outages; risks and uncertainties involving geology of oil and gas deposits; uncertainty related to securing sufficient egress and markets to meet shale gas production; the uncertainty of reserves and resources estimates, reserves life and underlying reservoir risk; the uncertainty of estimates and projections relating to production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; fluctuations in oil and gas prices, foreign currency exchange rates and interest rates; health, safety and environmental risks, including risks related to the possibility of major accidents; uncertainties as to the availability and cost of credit and other financing and changes in capital markets; risks in conducting foreign operations (for example, political and fiscal instability, the possibility of civil unrest, military action or rebel hostilities or the risk of abduction, expropriation or nationalization); changes in general economic and business conditions; and the possibility that government policies or laws may change or governmental approvals may be delayed or withheld. The foregoing list of risk factors is not exhaustive. Additional information on these and other factors which could affect the Companys operations or financial results or strategy are included under the heading Risk Factors and elsewhere in the Companys most recent annual information form. In addition, information is available in the Companys other reports on file with Canadian securities regulatory authorities and the SEC. Forward-looking information is based on the estimates and opinions of the Companys management at the time the information is presented. The Company assumes no obligation to update forward-looking information should circumstances or managements estimates or opinions change, except as required by law.
Gross Production In this presentation, Talisman makes reference to production volumes. Such production volumes are stated on a gross basis, which means they are stated prior to the deduction of royalties and similar payments. In the US, net production volumes are reported after the deduction of these amounts. Boe Conversion In this presentation, barrels of oil equivalent (boe) are calculated at a conversion rate of six thousand cubic feet (mcf) of natural gas for one barrel of oil (bbl). Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalence conversion method primarily applicable at the burner tip and does not represent a value equivalence at the wellhead.
March 2011 www.talisman-energy.com Page 18 of 19
US Dollars Dollar amounts are presented in US dollars, except where otherwise indicated. Analogous Information In this presentation, Talisman discloses analogous information as defined by National Instrument 51-101 which is relevant to the Company for comparative purposes. The Company cannot confirm that the analogous information (consisting of production estimates in CPO-9) was prepared by a qualified reserves evaluator nor that it was prepared in accordance with the COGE Handbook.
March 2011 www.talisman-energy.com Page 19 of 19
Notes
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Colombia coverBlank PageBinder1.pdf110302_Colombia Overview (Website).pdf11_03_01 TLM Key Historical Data_Page 111_03_01 TLM Key Historical Data_Page 2TLMPRD-#10736137-v1A-ADVISORIES_-_COLOMBIA_EXTERNAL_WEBSITE_PRESENTATION
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