Talisman sets 2009 capital spending at $ 3.3 bn

Canadian oil and gas producer Talisman Energy said it plans to spend about C$ 4 bn ($ 3.3 bn) and keep production flat in 2009. The company said it has more investment opportunities than available cash and predicts production will stay flat at about 430,000 barrels of oil equivalent per day compared to 2008.
Talisman said that low year-end commodity prices will significantly hurt reported reserves, especially in the United Kingdom, and the company expects high reserve replacement costs in 2008.

Talisman Chief Executive John Manzoni added that the company plans to fund capital programs from cash generated by operations and proceeds from confirmed divestments, including the C$ 500 mm ($ 417.6 mm) received from its previously announced sale of interest in properties in the Netherlands.
In 2008 the company sold noncore assets of about 12,000 barrels of oil equivalent per day of production with after-tax proceeds of around C$ 1 bn ($ 835.2 mm).