Canadian energy explorer,
Talisman Energy Inc.
) recently declared first oil production from fields at the Hai
Su Trang (HST) and Hai Su Den (HSD) development, located offshore
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The HST and HSD development consists of two offshore oil fields
within block 15-2/01, on the western edge of Vietnam's prolific
Cuu Long basin. The operator of the said block is Thang Long
Joint Operating Company (TLJOC) in which Talisman holds a 60%
working interest, with the remaining 40% being controlled by
PetroVietnam Production Exploration Corporation.
The development is located 75 kilometers offshore Southern
Vietnam in water depths of about 45 meters. It comprises two
wellhead platforms which are attached to the existing Te Giac
Trang FPSO. At HST, two wells were drilled, finished and attached
and at HSD two earlier drilled wells were completed and attached
Once the facilities are totally commissioned, Talisman expects
gross production of 15,000 barrels per day. Management at
Talisman believes that this development will help the company in
achieving its regional and corporate goal of adding near-term,
high-margin liquids volumes and related cash flow.
We like Talisman for its solid base business in Western Canada
and in the U.K. North Sea, while offering exposure to some of the
most prospective unconventional natural gas plays in North
America and high-impact exploration prospects worldwide.
However, Talisman reported weak first-quarter 2013 results due to
lower oil and liquids price realizations. The company announced
loss per share from continuing operations (excluding
non-operating items) of 6 cents against the Zacks Consensus
Estimate for a profit of 4 cents.
Talisman currently retains a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Meanwhile, there are certain other Canadian exploration and
production firms that are expected to perform better in the short
term. These include
ARC Resources Ltd.
) as well as
) with Zacks Rank #1 (Strong Buy) and
Gastar Exploration Ltd
) with Zacks Rank #2 (Buy).