UPDATE 3-Talisman CEO signals age of austerity for oil producer

Tue Oct 30, 2012 5:38pm EDT
 
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* 2013 capital spending cut to $3 billion

* Proceeds from North Sea sale to be used to cut debt

* CEO says no suitors have surfaced

* 3rd qtr net loss $731 mln; loss of $36 mln excluding items

* Shares sink 5 percent in Toronto

By Jeffrey Jones

CALGARY, Alberta, Oct 30 (Reuters) - Talisman Energy Inc's new chief executive on Tuesday announced a push into a new period of austerity for the Canadian oil producer, with a 25 percent cut in capital spending, plans to exit unprofitable regions and a promise to chop costs in the name of shoring up a lagging share price.

The announcement of the new strategy, delivered as Talisman reported a $731 million quarterly net loss after a series of writedowns, prompted a selloff in Talisman's shares as investors weighed the impact of a $1 billion cut in capital spending next year that will deliver one of its biggest hits to high-risk "wildcat" exploration.

The shares closed down 5 percent to C$11.50 on the Toronto Stock Exchange. They are down 11 percent this year.   Continued...