Talisman Energy Cuts Jobs

Up to 200 People Expected to Lose Jobs
Talisman Cuts Jobs

Talisman Cuts Jobs

Talisman Energy Inc., with extensive holdings in the Eagle Ford shale play, announced this week that it is cutting its workforce due to the continuing drop in crude prices.

Related: Energy Giants Announce Layoffs

Layoffs will affect between 150-200 employees and contractors from Talisman’s head office in Calgary. These cuts coincide with the company’s plans to trim its 2015 capital program to $2.1 billion, a 30 percent drop from 2014. So far, the company has not announced any job cuts in its Texas operations.

Talisman spokesperson, Brent Anderson, commented to Bloomberg that “Our decision to reduce our workforce numbers is based on the decline in global commodity prices, which has meant a reduced capital spending program for us this year. The impacts of the reductions are hitting all functions supporting all parts of the organization.”

Oil prices have fluctuated since the first of the year. After a short move upwards, the price has hovered around the mid forties for the past two weeks.

In February, Talisman Energy shareholders finalized the sale of the company to Repsol and expected to close in the second quarter of 2015. The company announced that job cuts are unrelated to this acquisition.

Read more: Repsol to Aquire Talisman Energy

Talisman’s interests in the Eagle Ford shale play are located in southeast Texas, where the Company now holds approximately 59,000 net acres of land in the following counties:

Repsol to Aquire Talisman Energy

Shareholders Agree to $8.3 billion Deal
Talisman Energy Eagle Ford Shale Acreage Map

Talisman Energy in the Eagle Ford

Talisman Energy shareholders unanimously agreed Tuesday to a deal that would finalize the sale of the company to Repsol. The deal includes includes the valuable Eagle Ford assets of of approximately 61,000 net acres of land.

In an organizational letter in 2014, the President and CEO expressed optimism for the future  saying, “2013 was a turnaround year for Talisman…and they are emerging as a stronger, more predictable company with better opportunities for profitable growth.” Unfortunately the drastic drop in crude prices proved too much for the company and shares began to drop sharply in November. A December announcement of the acquisition soon followed.

The company reported a $1.59 billion loss in the fourth quarter of 2014, and fell shy of its expected capex by $.2 billion. Additionally, the company reported that it would cut 300 jobs due to falling production and rising operating costs.

“This deal creates significant and immediate value for Talisman stakeholders,” said Chuck Williamson, Chairman of Talisman’s Board of Directors. “Importantly, the deal underscores Repsol’s strong belief in the high quality portfolio that Talisman has worked hard to develop. Repsol is a world-class operator with a solid track record and the financial capability to continue the development of these assets within their international portfolio. I am proud of the company that our employees, past and present, have built and I believe this transaction represents new opportunities for them in Canada and around the world.”


  • All-cash price of US$8.00 (C$9.33) per Talisman common share delivers significant and immediate value to Talisman common shareholders.
  • The $8.3 billion deal includes assumed debt of $4.7 billion
  • The transaction received the unanimous approval of Talisman’s and Repsol’s boards of directors.
  • Repsol and Talisman will create more competitive and more diversified global energy company, producing over 680 mboe/d, have refining capacity of 1 mboe/d, and have a presence in over 50 countries with 27,000 employees.
  • The transaction is targeted to close in the second quarter of 2015.

Talisman boasts that its Eagle Ford interests are among its most valuable assets. Currently, they are activity in the following Texas counties:

Read more at talismanenergy.com



Statoil Is Now An Eagle Ford Operator – Takes Over 50% Of Talisman’s Operations

Transition Began in Early 2013 And Was Completed in July
Statoil Eagle Ford Map

Statoil Eagle Ford Operations Map | Click to Enlarge

Statoil now operates half of the company’s Eagle Ford venture. The company has almost three years of experience in the play, but did not operate a rig in the area until April of this year.

Since the first quarter, Talisman, Statoil’s partner, has been transferring 50% of the JV’s operations to the Norwegian company.

The Talisman – Statoil Eagle Ford JV has been active in South Texas for almost three years. When the JV was first agreed it was understood Statoil would begin to operate 50% of the venture at some point. [Read more…]

Talisman Energy Shopping For Eagle Ford Buyers

The Company Could Sell 74,000 Acres And ~30,000 boe/d
Talisman Eagle Ford Map

Talisman Eagle Ford Map | Click to Enlarge

Talisman Energy has retained the Royal Bank of Canada to determine if buyers are interested in the company’s Eagle Ford acreage.

Talisman previously announced plans to divest $2-3 billion in non-core assets. The Eagle Ford is a core holding, but there are hopes the company could get as much as $2 billion for its 74,000 acres and 30,000 boe/d (2013 guidance). [Read more…]

Double Eagle Pipeline Moving Eagle Ford Condensate to Corpus Christi

Condensate Moving From Three Rivers To Magellan's Corpus Christi Terminal
Double Eagle Pipeline - Eagle Ford Condensate System

Double Eagle Pipeline – Eagle Ford Condensate System | Click to Enlarge

Double Eagle Pipeline, LLC, a joint venture between Kinder Morgan and Magellan Midstream, has started moving condensate to Corpus Christi.

The pipeline is part of a project that was started by Copano and Magellan, but is operated by Kinder Morgan who purchased Copano earlier in 2013. [Read more…]

SM Energy Q3 Operations Update

SM Energy announced earnings last night (Oct. 31) and provided an operations update. In the Eagle Ford, production grew 32% over the second quarter to 128 mmcfe/d. The big jump was primarily attributable to the Eagle Ford Gathering pipeline that came online in the third quarter.

Production was lower than the company expected for several reported reasons: Intermittent downstream constraints, construction related downtime on midstream facilities, and a greater number of wells being shut-in while offset wells were being completed. The company even scaled back drilling plans in the quarter to keep from creating a larger backlog of completed wells waiting for sufficient gathering capabilities.

SM plans to run 5 rigs in the play throughout 2012. Eight pilot areas are currently under development to test downspacing and longer laterals. Data gathered by year end will contribute to development decisions in 2012. Three multi-well pads have been constructed and are expected to lower costs across three wells by $1 million.

[Read more…]