found this on QEC boardTalisman outlines it's future growth strategy...Roving Talisman casts its eye homeward
NORVAL SCOTT
Wednesday, April 30, 2008
CALGARY—Talisman Energy Inc., which for years staked its future on formerchiefexecutive officer Jim Buckee's vision of global deep-wellexploration,is making a dramatic about-turn: It's embracing Canada'sunconventional natural gas resources.
JohnManzoni, who tookover as CEO in September, said Wednesday Talisman willnow focus ongrowth in only a select few areas, one of which isproducing gas fromtight rock formations in North America.
UnderMr. Buckee, itsonly previous CEO, the company developed anidiosyncratic reputationfor seeking worldwide growth throughexploration, instead of tacklingthe easy-to-find, yet hard-to-developresources lying in the company'sown Alberta backyard.
WhileTalisman will continue to be aworldwide explorer, Mr. Manzoni's newstrategy effectively ditches thecompany's scattergun approach. His moreconservative plan would seek todeliver more reliable, sustainableproduction over a longer period,adopting the ways of many oil patchmajors.
“What has beensuccessful over the last decade may notbe so successful goingforward,” said Mr. Manzoni at the company'sannual meeting in Calgary.“In the last year or two our business modelhas become challenged – weare now at a scale where's it's moredifficult to grow at the same pacewith the same strategies. We have hadto run faster and faster just tostand still.”
The annualmeeting, which followed the releaseof the company's first-quarterfinancial results, was Mr. Manzoni'sfirst public appearance as CEO.
UnderMr. Buckee, who retiredlast year, Talisman grew from a 1992 spinofffrom BP PLC to become oneof Canada's largest oil and gas companies,expanding rapidly in regionslike the North Sea and – controversially –Sudan. All the while, itavoided unconventional resources like Alberta'soil sands or shale gas,which Mr. Buckee said were uneconomic todevelop.
WhileTalisman had some big finds, it found reliableproduction growthdifficult to come by, while its share price laggedthose of rivals likeEnCana Corp. and Canadian Natural Resources Ltd.that had made suchreserves a focus. Investors began to suggest the firmshould be brokenup to maximize value.
Under the strategyunveiled Wednesday,Talisman will now seek to “lengthen its stride” bydemonstrating thatit can sustainably grow over the long term, Mr.Manzoni said. The firmwill divest assets in non-strategic areas andwill no longer look toexpand in the North Sea – previously a coregrowth area. Instead, itwill look to develop Southeast Asia and Norwaymore rapidly, while itmay also look to South America and North Africafor future growth.
Thefirm will also seek to develop shallowbut wide unconventional naturalgas deposits trapped in shale, sand andsilt, an area it hasn'tpreviously targeted. The advantage of thatstrategy is that Talisman –an established conventional gas producer –already holds a vast NorthAmerican land base of 2.5 million acres whoseunconventional reserveshaven't even been evaluated, let alone tapped.
Thatacreageincludes holdings in some of North America's hottestunconventionalfields, such as Bakken in Saskatchewan and Montney inBritish Columbia.Talisman is also the largest landholder in Quebec,whose gas productionpotential, which could be unlocked with newextraction techniques, hasbeen the subject of fevered speculation inrecent months.
“Thoseare the big names, and we've gotthem,” Mr. Manzoni told reportersafter the annual meeting. The companynow plans to run pilot projectsin those areas to determine the size ofreserves before coming up witha more detailed development plan, hesaid.
While Talisman isnow looking at its unconventionalresources and will consider makingacquisitions, it still has no plansto get into the oil sands, Mr.Manzoni said.
© The Globe and Mail
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