Talisman’s Eagle Ford shale play is located in southeast Texas, where the Company now holds approximately 83,000 net acres. Talisman is the operator for a joint venture with Statoil in which the companies will jointly develop the Eagle Ford shale play. Statoil has the ability to become the operator of 50% of the joint assets in December 2013. Talisman’s strategy in this play is focused on natural gas liquids production in order to benefit from the high price outlook for the liquids market. Production in 2011 was 31 mmcfe/d, up from 5 mmcfe/d in 2010. Talisman plans to ramp up the development of the liquids rich areas and expects to operate between 10 and 14 rigs in 2012.
In May 2011, Talisman acquired additional undeveloped land in the Eagle Ford shale play for an aggregate of $145 million.