Talisman Energy Inc. said it hit pay dirt again in the Alberta Foothills. A new well tested at a gross rate of 14 MMcf/d but if left unrestricted by surface equipment would have had an estimated absolute open flow rate potential of 372 MMcf/d and estimated wellhead absolute open flow rate potential of 94 MMcf/d. The well is expected to be tied-in during the second quarter of 2007.

“This is one of the best wells ever drilled in the Alberta Foothills,” said CEO Jim Buckee. “This latest well continues to demonstrate Talisman’s preeminent position in the deeper, high-deliverability parts of the basin. Our track record, land position, technical skills and Talisman-operated infrastructure give us a strong, competitive advantage in the Foothills.”

The well was the fifty-fourth successful well drilled by Talisman in the Foothills since 2003. The region is an emerging growth area for the company and recently set a new weekly production record of 185 MMcf/d. Talisman currently has 55 MMcf/d of raw sales gas behind pipe in the region that is in the process of being tied in to the Talisman-operated Lynx and Palliser Pipelines, as well as other area facilities.

Talisman has about 200 leads in the Alberta Foothills, with 740,000 gross acres of land and estimated prospective resources of 3 Tcf of gas. The company currently is drilling 11 wells in the region and has plans to drill 30 gross wells in 2007.

“With an active Foothills exploration program underway we expect to see continued positive news flow from [Talisman],” said UBS analyst Andrew Potter. “In the short term we continue to monitor results from high impact wells such as Ram, Tay River and Minnow…” Potter highlighted the company’s “growing gas visibility.

“The key improvement stems from a better balance of high impact Foothills exploration with a greater focus on unconventional gas, such as the recently announced Outer Foothills play and emerging shale gas potential.”

Talisman also reported last week that it plans to sell off five Alberta noncore properties with about 17,000 boe/d (60% gas) of current production. Company officials did not estimate reserves. The sales are expected to be completed by the end of the second quarter 2007.

The sale of the assets is part of the company’s review of its noncore assets worldwide, some of which it believes may not be fully reflected in the company’s share price. Talisman intends to use any cash proceeds from these asset sales to repurchase shares.

The predominantly nonoperated assets are grouped into five areas: Greater Lloydminster along the central Alberta-Saskatchewam border; Central Alberta; Pembina/Brazeau in west-central Alberta; Wapiti/North Deep Basin in the central Alberta foothills; and Cranberry/Chinchaga in northwestern Alberta. The company has retained Tristone Capital Inc. to initiate a competitive auction process.

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