Talisman Energy Inc. (TLM) is sticking to the previous plan of divesting its Iraqi Kurdistan assets, as per Reuters although the Canadian energy explorer’s partner, WesternZagros Resources Ltd recently declared massive oil findings in the Kurdamir block in the Kurdistan region.
Talisman Energy has a 40% interest in the WesternZagros Resources operated Kurdamir block. According to WesternZagros, the recently discovered field in the Kurdamir block might has more than 1 billion barrels of crude. It is highly expected that the field can produce oil at a rate of 150,000 barrels per day (bpd). WesternZagros added that by 2015 end, the field will likely have initial production of roughly 10,000 bpd.
In the Kurdistan region, Talisman Energy also has stake in the Topkhana block along with Kurdamir asset.
Although WesternZagros has discovered oil field of huge potential in the Kurdamir block, Talisman Energy is still searching for potential buyers implying its intention to get rid of those assets that do not fit into its long-term growth plan. Over the last few years, Talisman Energy has been selling non-core oil and gas properties around the world, thereby freeing up capital to concentrate on its growth projects and pay off the pending debt.
However, it might be difficult for Talisman Energy to find new buyers as most of the companies in the region are withdrawing their employees or halting operations. Oil biggies like Chevron Corp. (CVX) and Exxon Mobil Corp. (XOM) have already evacuated most of the staff from the region, whereas several smaller firms have temporarily shut down operations.
Calgary, Alberta-based Talisman Energy is a major independent oil and gas exploration and production (E&P) company, which conducts its operations in three principal geographic segments: North America, the North Sea and Southeast Asia.
At present, Talisman Energy carries a Zacks Rank #3 (Hold), implying that will perform in line with the broader U.S. market in the next one to three months.
Meanwhile, one can look at better-ranked players in the oil exploration and production industry like Gastar Exploration Inc. (GST). The stock holds a Zacks Rank #2 (Buy).
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