TLM

Independent energy firm Talisman Energy (TLM) announced that in response to the interests from prospective buyers for a stake in one of its oil fields, the company seeks to entertain final bids till the end of June.

The bids will be held for a 25% stake in the Kitan oil block, located in Timor Sea that will likely come on line in the second half of 2011, with an initial rate of 40,000 barrels of crude per day. Additionally, the field also includes five oil discoveries having an estimated reserve of 34.6 million barrels of oil.

Apart from Talisman, Italian company Eni SpA (E) controls a 40% interest in the oil play and acts as an operator, while Japan's Inpex Corp. holds the remaining 35% stake.

The Kitan oil field is attracting a lot of attention from major oil and gas players owing to its proximity to the vast and fast growing economy of China.     

Calgary, Alberta-based Talisman is engaged in the exploration, development, production, transportation, and marketing of crude oil, natural gas, and natural gas liquids. The company primarily operates in North America, the United Kingdom, Scandinavia, and southeast Asia.

We believe that Talisman enjoys solid base business in Western Canada and the U.K. North Sea. The company is also exposed to some of the most prospective unconventional natural gas plays in North America and high-impact exploration prospects worldwide.

However, the company remains sensitive to volatile oil and gas prices, international business risks and slow global recovery. We are maintaining our Neutral recommendation on the stock.

 
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