Talisman announces 2010 budget including major increase in Montney shale

Talisman Energy Inc. (TLM) today announced its 2010 budget. Included in the budget is a major increase in North American shale drilling. "Our main priority in 2010 will be ramping up development of the Marcellus and Montney shale plays," says John Marzoni, President and CEO. "TLM expects to drill 35 to 40 horizontal wells, starting commercial development in the greater Cypress and Farrell areas," the release states.

The release also states, "In the Montney shale, Talisman is moving the Farrell Creek and Greater Cypress areas into commercial development, with approximately 25 horizontal development wells expected in 2010 (with plans to complete 17 of these during the year). In addition, it expects to drill 10 to 15 Montney shale pilot wells, including its first multilateral, as it continues to delineate this large play. The company will expand from three rigs to as many as nine by the end of the year, spending approximately $550-million."

"Talisman expects to exit the Montney shale in 2010 at between 40 to 60 million cubic feet per day, based on expected ultimate recoveries of around five billion cubic feet per well and 30-day initial production rates of 4.5 million cubic feet per day."

Canadian Spirit Resources Inc. (SPI) operates in the greater Farrell area adjacent to Talisman's Montney lands. Expect Canadian Spirit Resources Inc. (SPI) to announce its budget soon and hopefully an aggressive Montney shale drilling schedule is likewise included.