Talisman posts loss on Peru exit, Yme delay

Tue Oct 30, 2012 5:43pm EDT
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(Reuters) - Talisman Energy Inc TLM.TO TLM.N, the Canadian oil company that recently replaced its chief executive amid takeover speculation, reported a quarterly loss due to its planned exit from Peru and delays affecting its oil platform in Norway.

Under Hal Kvisle, who took the helm from John Manzoni in September, Talisman plans to focus on near-term cash generation and on projects that come into production more quickly.

"We are working toward a disciplined capital plan for 2013 in the range of $3 billion, smaller and more focused than we've seen in recent years," Kvisle, the former chief at Canada's largest pipeline company TransCanada Corp (TRP.TO: Quote), said in a statement.

Talisman, which had been shifting to liquids-rich gas prospects as dry gas prices languished near 10-year lows, plans to strengthen its core regions of the Americas, Southeast Asia and the North Sea, while shedding its non-core assets.

"We will live within our means. We will set capital spending budgets that can be funded by operating cash flows," Kvisle said. The company will reduce up front capital on high-risk exploration in multiple regions around the world, he said.

Talisman said last month it was giving up its eight-year-long effort to produce oil in Peru.

The company has shifted its efforts to oil-rich fields such as Eagle Ford in Texas as well as early stage Duvernay liquids-rich gas acreage in Alberta.

Shares of the company, which has a market value of about C$13 billion, closed at C$12.05 on the Toronto Stock Exchange on Monday. They have fallen 7 percent since the start of the year.

YME, SHALE CURBS HURT   Continued...