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Talisman Energy reports FY average production 426K boe/d, flat with prior year

The company reported production averaged 426,000 boe/d, flat year over year. Gains in Southeast Asia, liquids growth in Colombia and the Eagle Ford and higher natural gas volumes in North America were offset by declines in the North Sea. Production from ongoing operations increased by 4% over 2011, reflecting the impact of non-core asset sales in North America and the completion of the UK joint venture. At the end of 2012, Talisman's 2P reserves totalled 1.7B boe, which equates to a reserve life index of 11 years. The company added approximately 31M boe of 2P reserves in the liquids-rich Eagle Ford shale play, 26M boe 2P reserves in the Montney shale, 11M boe 2P reserves in Wild River, Canada, and 7M boe 2P reserves in Corridor, Indonesia. In 2012, management took decisions to high-grade capital spending programs, optimize projects and focus the portfolio, which had a major impact on reserves. In the Marcellus dry gas shale play, capital spending has been reduced significantly, which led to negative reserve additions of approximately 38M boe of 2P reserves. These negative additions reflect uncertainty in the timing of development, not technical certainty, the company said. As part of the decision to focus the portfolio, Talisman announced it will exit Peru, with a reduction of approximately 21M boe of 2P reserves. The company said it expects to provide details on its contingent resource position on March 6.