January 20, 2009
Transcript
Barack Obama’s Inaugural Address
Following is the transcript of President Barack Obama’s Inaugural Address, as transcribed by CQ Transcriptions:
PRESIDENT BARACK Thank you. Thank you.
CROWD: Obama! Obama! Obama! Obama!
My fellow citizens: I stand here today humbled by the task before us, grateful for the trust you have bestowed, mindful of the sacrifices borne by our ancestors.
I thank President Bush for his service to our nation...
(APPLAUSE)
... as well as the generosity and cooperation he has shown throughout this transition.
Forty-four Americans have now taken the presidential oath.
The words have been spoken during rising tides of prosperity and the still waters of peace. Yet, every so often the oath is taken amidst gathering clouds and raging storms. At these moments, America has carried on not simply because of the skill or vision of those in high office, but because We the People have remained faithful to the ideals of our forbearers, and true to our founding documents.
So it has been. So it must be with this generation of Americans.
That we are in the midst of crisis is now well understood. Our nation is at war against a far-reaching network of violence and hatred. Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some but also our collective failure to make hard choices and prepare the nation for a new age.
Homes have been lost, jobs shed, businesses shuttered. Our health care is too costly, our schools fail too many, and each day brings further evidence that the ways we use energy strengthen our adversaries and threaten our planet.
These are the indicators of crisis, subject to data and statistics. Less measurable, but no less profound, is a sapping of confidence across our land; a nagging fear that America's decline is inevitable, that the next generation must lower its sights.
Today I say to you that the challenges we face are real, they are serious and they are many. They will not be met easily or in a short span of time. But know this America: They will be met.
(APPLAUSE)
On this day, we gather because we have chosen hope over fear, unity of purpose over conflict and discord.
On this day, we come to proclaim an end to the petty grievances and false promises, the recriminations and worn-out dogmas that for far too long have strangled our politics.
We remain a young nation, but in the words of Scripture, the time has come to set aside childish things. The time has come to reaffirm our enduring spirit; to choose our better history; to carry forward that precious gift, that noble idea, passed on from generation to generation: the God-given promise that all are equal, all are free, and all deserve a chance to pursue their full measure of happiness.
(APPLAUSE)
In reaffirming the greatness of our nation, we understand that greatness is never a given. It must be earned. Our journey has never been one of shortcuts or settling for less.
It has not been the path for the faint-hearted, for those who prefer leisure over work, or seek only the pleasures of riches and fame.
Rather, it has been the risk-takers, the doers, the makers of things -- some celebrated, but more often men and women obscure in their labor -- who have carried us up the long, rugged path towards prosperity and freedom.
For us, they packed up their few worldly possessions and traveled across oceans in search of a new life. For us, they toiled in sweatshops and settled the West, endured the lash of the whip and plowed the hard earth.
For us, they fought and died in places Concord and Gettysburg; Normandy and Khe Sahn.
Time and again these men and women struggled and sacrificed and worked till their hands were raw so that we might live a better life. They saw America as bigger than the sum of our individual ambitions; greater than all the differences of birth or wealth or faction.
This is the journey we continue today. We remain the most prosperous, powerful nation on Earth. Our workers are no less productive than when this crisis began. Our minds are no less inventive, our goods and services no less needed than they were last week or last month or last year. Our capacity remains undiminished. But our time of standing pat, of protecting narrow interests and putting off unpleasant decisions -- that time has surely passed.
Starting today, we must pick ourselves up, dust ourselves off, and begin again the work of remaking America.
(APPLAUSE)
For everywhere we look, there is work to be done.
The state of our economy calls for action: bold and swift. And we will act not only to create new jobs but to lay a new foundation for growth.
We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.
We will restore science to its rightful place and wield technology's wonders to raise health care's quality...
(APPLAUSE)
... and lower its costs.
We will harness the sun and the winds and the soil to fuel our cars and run our factories. And we will transform our schools and colleges and universities to meet the demands of a new age.
All this we can do. All this we will do.
Now, there are some who question the scale of our ambitions, who suggest that our system cannot tolerate too many big plans. Their memories are short, for they have forgotten what this country has already done, what free men and women can achieve when imagination is joined to common purpose and necessity to courage.
What the cynics fail to understand is that the ground has shifted beneath them, that the stale political arguments that have consumed us for so long, no longer apply.
MR. The question we ask today is not whether our government is too big or too small, but whether it works, whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified.
Where the answer is yes, we intend to move forward. Where the answer is no, programs will end.
And those of us who manage the public's knowledge will be held to account, to spend wisely, reform bad habits, and do our business in the light of day, because only then can we restore the vital trust between a people and their government.
Nor is the question before us whether the market is a force for good or ill. Its power to generate wealth and expand freedom is unmatched.
But this crisis has reminded us that without a watchful eye, the market can spin out of control. The nation cannot prosper long when it favors only the prosperous.
The success of our economy has always depended not just on the size of our gross domestic product, but on the reach of our prosperity; on the ability to extend opportunity to every willing heart -- not out of charity, but because it is the surest route to our common good.
(APPLAUSE)
As for our common defense, we reject as false the choice between our safety and our ideals.
Our founding fathers faced with perils that we can scarcely imagine, drafted a charter to assure the rule of law and the rights of man, a charter expanded by the blood of generations.
Those ideals still light the world, and we will not give them up for expedience's sake.
And so, to all other peoples and governments who are watching today, from the grandest capitals to the small village where my father was born: know that America is a friend of each nation and every man, woman and child who seeks a future of peace and dignity, and we are ready to lead once more.
(APPLAUSE)
Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with the sturdy alliances and enduring convictions.
They understood that our power alone cannot protect us, nor does it entitle us to do as we please. Instead, they knew that our power grows through its prudent use. Our security emanates from the justness of our cause; the force of our example; the tempering qualities of humility and restraint.
We are the keepers of this legacy, guided by these principles once more, we can meet those new threats that demand even greater effort, even greater cooperation and understanding between nations. We'll begin to responsibly leave Iraq to its people and forge a hard- earned peace in Afghanistan.
With old friends and former foes, we'll work tirelessly to lessen the nuclear threat and roll back the specter of a warming planet.
We will not apologize for our way of life nor will we waver in its defense.
And for those who seek to advance their aims by inducing terror and slaughtering innocents, we say to you now that, "Our spirit is stronger and cannot be broken. You cannot outlast us, and we will defeat you."
(APPLAUSE)
For we know that our patchwork heritage is a strength, not a weakness.
We are a nation of Christians and Muslims, Jews and Hindus, and nonbelievers. We are shaped by every language and culture, drawn from every end of this Earth.
And because we have tasted the bitter swill of civil war and segregation and emerged from that dark chapter stronger and more united, we cannot help but believe that the old hatreds shall someday pass; that the lines of tribe shall soon dissolve; that as the world grows smaller, our common humanity shall reveal itself; and that America must play its role in ushering in a new era of peace.
To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect.
To those leaders around the globe who seek to sow conflict or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy.
To those...
(APPLAUSE)
To those who cling to power through corruption and deceit and the silencing of dissent, know that you are on the wrong side of history, but that we will extend a hand if you are willing to unclench your fist.
(APPLAUSE)
To the people of poor nations, we pledge to work alongside you to make your farms flourish and let clean waters flow; to nourish starved bodies and feed hungry minds.
And to those nations like ours that enjoy relative plenty, we say we can no longer afford indifference to the suffering outside our borders, nor can we consume the world's resources without regard to effect. For the world has changed, and we must change with it.
As we consider the road that unfolds before us, we remember with humble gratitude those brave Americans who, at this very hour, patrol far-off deserts and distant mountains. They have something to tell us, just as the fallen heroes who lie in Arlington whisper through the ages.
We honor them not only because they are guardians of our liberty, but because they embody the spirit of service: a willingness to find meaning in something greater than themselves.
And yet, at this moment, a moment that will define a generation, it is precisely this spirit that must inhabit us all.
For as much as government can do and must do, it is ultimately the faith and determination of the American people upon which this nation relies.
It is the kindness to take in a stranger when the levees break; the selflessness of workers who would rather cut their hours than see a friend lose their job which sees us through our darkest hours.
It is the firefighter's courage to storm a stairway filled with smoke, but also a parent's willingness to nurture a child, that finally decides our fate.
Our challenges may be new, the instruments with which we meet them may be new, but those values upon which our success depends, honesty and hard work, courage and fair play, tolerance and curiosity, loyalty and patriotism -- these things are old.
These things are true. They have been the quiet force of progress throughout our history.
What is demanded then is a return to these truths. What is required of us now is a new era of responsibility -- a recognition, on the part of every American, that we have duties to ourselves, our nation and the world, duties that we do not grudgingly accept but rather seize gladly, firm in the knowledge that there is nothing so satisfying to the spirit, so defining of our character than giving our all to a difficult task.
This is the price and the promise of citizenship.
This is the source of our confidence: the knowledge that God calls on us to shape an uncertain destiny.
This is the meaning of our liberty and our creed, why men and women and children of every race and every faith can join in celebration across this magnificent mall. And why a man whose father less than 60 years ago might not have been served at a local restaurant can now stand before you to take a most sacred oath.
(APPLAUSE)
So let us mark this day in remembrance of who we are and how far we have traveled.
In the year of America's birth, in the coldest of months, a small band of patriots huddled by nine campfires on the shores of an icy river.
The capital was abandoned. The enemy was advancing. The snow was stained with blood.
At a moment when the outcome of our revolution was most in doubt, the father of our nation ordered these words be read to the people:
"Let it be told to the future world that in the depth of winter, when nothing but hope and virtue could survive, that the city and the country, alarmed at one common danger, came forth to meet it."
America, in the face of our common dangers, in this winter of our hardship, let us remember these timeless words; with hope and virtue, let us brave once more the icy currents, and endure what storms may come; let it be said by our children's children that when we were tested we refused to let this journey end, that we did not turn back nor did we falter; and with eyes fixed on the horizon and God's grace upon us, we carried forth that great gift of freedom and delivered it safely to future generations.
Thank you. God bless you.
(APPLAUSE)
And God bless the United States of America.
(APPLAUSE)
Nortel files for bankruptcy protection
ANDREW WILLIS, JACQUIE McNISH AND MATTHEW HARTLEY
Wednesday, January 14, 2009
Former technology titan Nortel Networks Corp. filed for bankruptcy protection Wednesday, a move that will likely see what was once Canada's great corporate success story broken up and sold to foreign rivals.
Nortel's board of directors was meeting last night to deal with a financial crisis, as the economic downturn translates into a sharp drop in orders from phone company clients. The telecom-hardware manufacturer failed to find buyers for a number of divisions that were put up for sale in September, and faces the prospect of paying $107-million (U.S.) of interest on its debts tomorrow.
“It is an iconic Canadian name and there will be a great national grieving over this,” said one person familiar with Nortel's plans.
The company's already crushed shares plunged further in European trading Wednesday as investors absorbed the development, falling to as little as the equivalent of 35.41 cents Canadian on the Frankfurt Stock Exchange, before inching back to 37.66 cents, down 2.9 cents from Tuesday's close.
Toronto-based Nortel applied for court approval for creditor protection in Delaware Wednesday morning. It was expected to file in Toronto, as well. Nortel executives had no comment yesterday on the company's plans.
Opting for creditor protection marks an incredible fall from grace for a telecom manufacturer that is almost as old as the telephone. Nortel easily qualified as the country's largest company at the peak of the tech boom in 2000, with a $366-billion (Canadian) market capitalization and 95,000 employees.
While still North America's largest telecom equipment maker, Nortel's shares were worth a total of just $192-million yesterday, and the company has 26,000 staff after a bruising series of layoffs over the past eight years. Nortel stock that soared to $1,231 at the peak of the tech bubble – reflecting a recent consolidation in shares – closed yesterday at 38.5 cents on the Toronto Stock Exchange.
Court protection from lenders, and the breakup that will likely follow, would mark the end of chief executive officer Mike Zafirovski's four-year attempt to turn Nortel around. Mr. Zafirovski was parachuted into the top job in 2005 after successful stints at General Electric and Motorola. But he was never able to right a company plagued by a series of accounting scandals – one of his predecessors faces fraud charges – and weakening demand for its products.
While not bankrupt – the company has an estimated $1-billion in its coffers – Nortel is burning though cash at an impressive clip, and has $4.5-billion (U.S.) in long-term debt. Major lenders include JPMorgan Chase, Citigroup and Royal Bank of Canada. Seeking court protection would give the company more latitude in selling or restructuring factories and research facilities. Air Canada, for example, went this route in 2003, continuing to fly while cutting jobs and reworking its debts. Duncan Stewart, an analyst at DSAM Consulting in Toronto, said: “The issue is not whether or not they can pay it. … It's the idea of: If you know you're eventually going to default anyway, why not do it now and keep the … interest payments you would have shelled out?”
Typically, companies do not file for bankruptcy protection until they have drained most of their cash. But the deepening global credit crunch had raised concerns that a troubled company such as Nortel would not be able to raise enough money to finance its operations during bankruptcy proceedings.
The court filing will come as a shock to the company's bondholders, who had expected Nortel to pay its debts this week. Shareholders will likely see their holdings all but wiped out.
As a consequence of filing for protection, Nortel can expect to lose significantly more business, potentially sending the company into a death spiral, analysts say.
The sophisticated equipment made by Nortel carries an expectation from customers – the major phone companies – that the manufacturer will be around to service networks. One of the reasons the auto makers gave last month for resisting calls for them to file for bankruptcy protection was that potential customers would not buy from a manufacturer they did not think would be around to service the vehicles. For the network equipment industry, that fear is justifiably magnified.
When Nortel said in September that it would put its Metro Ethernet Networks division up for sale – it makes hardware that carries Internet traffic – revenue fell on fears of sustainability and service.
Now Nortel faces the prospect of selling additional divisions to pay down debts, all under the supervision of a judge. In addition to selling the Ethernet unit, divisions that could go on the auction block include the carrier networks unit, which sells gear to phone companies, and the enterprise division that sells telecom equipment to businesses. Potential buyers for these units are all foreign: Nokia Siemens Networks, Telefon AB LM Ericsson, Cisco Systems Inc. and China's Huawei Technologies Co. Ltd.
Nortel's storied history in the telecommunications field dates back nearly as far as the telephone itself. The company was founded in 1895 as Northern Electric Manufacturing Company to begin selling telephone equipment to other companies as Canada built out its first telecom network.
Throughout the first half of the 20th century, the company's telecom gear business grew steadily, but Nortel also built telegraphic equipment used on the battlefields of the First World War as well as the first sound system in Canada for talking movies.
In the 1950s, the company developed electromechanical switches, a technology that would allow direct phone calls between cities. Nortel was an early pioneer of satellite technologies in the 1960s and helped build Canada's first cellular telephone networks.
Nortel's fortunes exploded with the dawn of the Internet and the introduction of increasingly sophisticated modems and cellular technologies. At its peak, this one company accounted for nearly one-third of the total value of the TSX; the company was worth more than all six big banks combined.
Now the company is being brought to its knees by the prospect of paying $107-million of interest due to its bondholders this week. However, that is not the only financial deadline facing Nortel. On Dec. 15, the company was given a 30-day waiver from Export Development Canada on the government agency's support for up to $750-million of credit. The deadline on that waiver is today.
With a report from Simon Avery
© Copyright The Globe and Mail
Talisman Energy Plans to Balance Cash and Spending in 2009
07:00 EST Tuesday, January 13, 2009
CALGARY, ALBERTA--(Marketwire - Jan. 13, 2009) - Talisman Energy Inc. (TSX:TLM) (NYSE:TLM) has announced its capital spending plans for 2009. The priorities for the coming year are:
- Preserving financial strength and flexibility in a low price environment.
- Advancing the strategy for long-term growth and building on the success from last year.
- Continuing the focus on efficiency and costs.
The Company has budgeted for exploration and development spending of approximately $3.6 billion in 2009 and plans to fund these capital programs from cash flow and disposition proceeds. Including non-cash lease costs, total capital spending is expected to be approximately $4 billion. Talisman has set these plans assuming a US$40/bbl WTI oil price and a US$5/mmbtu NYMEX natural gas price in 2009.
The Company plans to issue its final 2008 results on March 5, 2009.
"We have assumed what we hope to be a conservative scenario for oil and gas prices in 2009," said John A. Manzoni, President & CEO. "Talisman entered 2009 with a strong balance sheet and our objective this year is to preserve financial flexibility by living within our means and continue to advance our new strategy. We have achieved good progress on the strategy introduced last May and this new direction for the Company is proving to be robust.
"We have significantly more investment opportunities than available cash in the current environment, which allows us to be flexible in where we focus investment. We will concentrate on continued implementation of our strategic priorities, sometimes at the expense of current production, because we believe our strategy will deliver the highest returns over time. Based on our projected investment pattern, 2009 production should be broadly similar to last year, which is expected to come in at about 430,000 boe/d. This shift in spending towards higher quality strategic projects is expected to provide sustainable long-term growth at lower risk.
"We will maintain a flexible approach to spending this year, which will allow us to navigate this dynamic environment. We plan to fund our capital programs from cash generated by operations plus proceeds from confirmed divestments. This includes approximately US$500 million received last week from our previously announced Netherlands sale.
"In line with our objective of focusing the portfolio, last year we sold non core assets comprising around 12,000 boe/d of production with after tax proceeds of around $1 billion. We intend to continue this process, recognizing that sales may be difficult in the current financial environment. We will also be mindful of opportunities created in this commodity price environment where it may be better value to buy than to build.
"While we are still in the process of evaluating our 2008 results, low year-end commodity prices will likely have a significant negative impact on reported reserves, predominantly in the UK. In addition, lower prices, combined with adding substantial amounts of high quality unconventional land in North America, while progressing a number of large international development projects, are expected to result in high reserve replacement costs in 2008. However, we expect the strategic shift to unconventional gas and a focus on larger international exploration targets will lead to a substantial reduction in these costs over time. We also see indications that costs are coming down and we will continue to manage our cost base carefully, both in terms of capital and operating costs, continually looking for opportunities to reduce them.
"The capital program is relatively balanced among: North America (33%); North Sea development (27%); Southeast Asia growth projects (19%); international exploration (18%, including North Sea and Southeast Asia exploration); with the remaining 3% allocated for the rest of the world.
"In North America, spending is expected to be approximately $1.2 billion this year. Spending on unconventional gas programs will account for approximately $1 billion of the total, with about two-thirds of unconventional spending budgeted for the Marcellus and Montney plays. The North American unconventional program will be the primary user of any incremental capital that becomes available through the year either through higher prices or additional non-core asset sales. We are encouraged by the results in our core areas and see unconventional gas as one of the main drivers of long term growth for Talisman.
"North Sea development spending is focused on project developments at Yme in Norway, in addition to the Burghley development and the Auk North and South redevelopment in the UK. We will delay some planned asset sales in the UK in this environment; however, our objective remains to establish the UK as a long term, high quality generator of free cash flow. In Southeast Asia, the emphasis will be on achieving first oil from Northern Fields in the PM-3 CAA, continued development offshore Vietnam and increasing gas sales in Indonesia from Corridor and Tangguh. We continue to look for additional investment opportunities in this low cost, energy rich part of the world.
"We have an exciting exploration program lined up this year with a second well planned for the Kurdistan region of Northern Iraq, appraisal of a previous Talisman discovery in Peru, completion of the Huron-1 well in Colombia and the TR3 well in Norway. In addition, there is an ongoing appraisal and evaluation program in Block 15-2/01 in Vietnam. In total this year, we will participate in 24 exploration and appraisal wells, 11 of which we will operate. Our longer-term objective is to add 150 mmbbls of resources per year at a cost of less than $5/bbl.
"Talisman enters 2009 with a strong balance sheet and a lot of flexibility. We have made significant progress on our strategy in a very short period of time and will continue implementation. I am confident we will exit the year with the Company even better positioned for sustainable growth and value creation."
The 2009 Capital Program
The 2009 capital program supports Talisman's new strategic objectives outlined in May 2008. The Company has achieved significant progress in the past seven months:
- Talisman sold interests in non-strategic properties in North America, Denmark and the Netherlands, with aggregate proceeds of $1 billion.
- In North America, the Company spent $1.4 billion acquiring substantial amounts of high quality unconventional natural gas acreage and drilling approximately 186 gross unconventional pilot and development wells in new areas.
- New projects were brought on in Southeast Asia (Northern Fields gas in Malaysia and Song Doc in Vietnam).
- The Company added new exploration acreage in Colombia, the UK and also acquired interests in two blocks in one of the most prospective exploration areas in the world in the Kurdistan region of Northern Iraq.
North America
As part of the 2008 strategic review, Talisman decided to substantially increase its investment in unconventional natural gas. A total of 186 gross unconventional wells were drilled in new areas in 2008. The Company is continuing pilot programs in a number of areas and moving to development of others. The Company also made significant additions to its already sizeable unconventional land base in 2008.
Talisman plans to spend $1.2 billion in North America in 2009, focusing on projects in areas where the Company has a large, material opportunity base. Approximately 80% of spending will be on unconventional properties, with $710 million allocated to development of the Pennsylvania Marcellus Shale and continued piloting and development of the Montney. Spending on conventional assets in North America will be limited to existing commitments on heritage properties. Although this will impact 2009 volumes, Talisman believes its unconventional opportunities have a better risk/return profile.
Following on its success in 2008 in the Marcellus Shale in Pennsylvania, where Talisman holds 140,000 net acres, the Company plans to move into the development stage. Talisman plans to drill 36 gross horizontal wells in 2009, with up to five rigs drilling by the third quarter. With continued success in Pennsylvania, the program could ramp up to 16 rigs in the area by 2010.
Talisman plans to continue building on its success in the Montney area, with a mix of pilot projects, development and land acquisitions in 2009. Talisman is active in several regions within the Montney. In 2009, the Company plans to drill 49 gross wells, with the possibility of increasing this level with continued success. By year-end, nine rigs will be drilling in the area. Talisman holds 87,000 net acres of land in the Groundbirch area, where it will continue its pilot program in 2009.
Talisman will continue to pilot and prepare its Quebec landholdings for a 2010 drilling program. The Company will also complete its drilling program in West Texas, which was part of the Hallwood transaction entered into in 2008.
Talisman's drilling plans for 2009 include a total of 131 gross unconventional development wells and 29 gross pilot wells. Talisman expects to have a total of 16 unconventional rigs deployed by the end of the year.
Southeast Asia
In Southeast Asia, the Company plans to leverage its successful track record in Malaysia and Indonesia and plans to spend approximately $850 million in 2009, primarily focusing on developing growth projects in the region. The majority of spending will be on development drilling in the Northern Fields in Malaysia, where the Company expects to drill approximately 16 oil and gas wells and on the continued appraisal and development of Block 15-2/01 in Vietnam. Talisman plans to drill three wells on the Block, one appraisal/development well in the basement structure and two exploration wells to test additional prospects.
In Malaysia, Talisman will progress Northern Field Development to first oil in the second quarter of 2009. In Vietnam, sanction for the development of the Hai Su Trang field and for the Hai Su Den early production scheme is expected in the first half of 2009, with first production anticipated in 2012. In Indonesia, the Company expects first production from the Tangguh LNG project in the second quarter of 2009 and will pursue sanction of Suban Phase 3 in the Corridor PSC for first gas sales in 2013. In addition, Talisman will continue to evaluate exploration opportunities in existing Joint Study Agreement blocks as well as licencing rounds.
North Sea
In the North Sea, Talisman plans to spend approximately $1.4 billion in 2009, excluding a non-cash capitalized lease in Norway of $270 million. Of this, approximately $750 million will be spent in the UK and $630 million in Norway, without the non-cash lease. Approximately $235 million will be spent on exploration drilling, which includes two wells to follow-up on the Cayley discovery in the UK.
In Norway, the overall objective is to grow operations through development projects in the near term and through exploration in the mid- to long-term. The cash capital program in Norway is approximately $630 million, of which approximately $340 million will be spent on Yme development and approximately $120 million on exploration. Talisman's development program in Norway includes 13 development wells, nine of which are operated. Seven wells are planned on Yme and two wells each on the Brage and Gyda fields.
In the UK, the overall aim is to hold production flat and continue the UK as a free cash flow generator. Talisman plans development spending of $560 million, including drilling and completing two wells at Auk North, detailed engineering on the Auk South project and commencing the Burghley project. In total, seven new development wells are expected to be drilled in 2009. We have slowed expenditure on a number of projects in order to take advantage of a slowdown in the contracting environment.
North Africa
In North Africa, capital spending is expected to be $66 million for 2009. Talisman anticipates the El Merk development project will be sanctioned in the first quarter of 2009. Development drilling will commence in the second quarter of 2009 and first oil is planned for the first quarter of 2012. At the Ourhoud field, a continuous development drilling program is planned through to mid-2010.
Exploration
Talisman's global exploration strategy is to deliver organic growth to the Company by defining new exploration opportunities within the current asset base and identifying potential future core production areas. Excluding North America, exploration spending in 2009 is budgeted at approximately $660 million. Key wells planned include TR3 and Grevling in Norway, Situche Centrale appraisal in Peru, Huron-1 in Colombia and a second well in the Kurdistan exploration program.
In the North Sea, Talisman plans to support the existing core areas with four operated wells in the UK and three in Norway. In Southeast Asia, Talisman will complete the appraisal program on Block 15-2/01 in Vietnam as well as progressing the evaluation of Pasangkayu, Sageri and the Joint Study agreement blocks in Indonesia.
In South America, Talisman will drill a well to appraise an earlier discovery in Block 64 in Peru. The Company will continue drilling operations of the Huron-1 well in the Niscota Block, drill an additional well in El Caucho and progress the evaluation of the recently awarded blocks in Colombia.
In the Kurdistan region of Northern Iraq, following the first well, which is currently drilling on Block K44, Talisman will drill the second of a three well commitment and acquire additional seismic over Block K39.
Talisman Energy Inc. is an independent upstream oil and gas company headquartered in Calgary, Alberta, Canada. The Company and its subsidiaries have operations in North America, the North Sea, Southeast Asia and North Africa. Talisman's subsidiaries are also active in a number of other international areas. Talisman is committed to conducting its business in an ethically, socially and environmentally responsible manner. The Company is a participant in the United Nations Global Compact and included in the Dow Jones Sustainability (North America) Index. Talisman's shares are listed on the Toronto Stock Exchange in Canada and the New York Stock Exchange in the United States under the symbol TLM.
Financial Information:
All dollar amounts are stated in Canadian dollars, except where otherwise indicated.
Forward-Looking Information
This press release contains information that constitutes "forward-looking information" or "forward-looking statements" (collectively "forward-looking information") within the meaning of applicable securities legislation. This forward-looking information includes, among others, statements regarding:
- business plans for drilling, exploration, appraisal and development and estimated timing;
- estimates of production and production growth;
- expected impact of low year-end commodity prices;
- business strategy and plans, including planned land acquisitions and pilot projects;
- estimated timing and results of new projects, including the timing of new production first sales;
- estimated amounts and timing and sources of capital expenditures;
- outlook for oil and gas prices;
- expected timing of results;
- objectives regarding resource additions and costs;
- expected timing of project sanctioning;
- expected acquisition of seismic; and
- other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance.
The following material assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking information contained in this press release. Talisman has set its 2009 capital expenditure plans assuming a US$40/bbl WTI oil price and a US$5/mmbtu NYMEX natural gas price. Information regarding business plans generally assumes that the extraction of crude oil, natural gas and natural gas liquids remains economic.
Undue reliance should not be placed on forward-looking information. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks which could cause actual results to vary and in some instances to differ materially from those anticipated by Talisman and described in the forward-looking information contained in this press release. The material risk factors include, but are not limited to:
- the risks of the oil and gas industry, such as operational risks in exploring for, developing and producing crude oil and natural gas, market demand and unpredictable facilities outages;
- risks and uncertainties involving geology of oil and gas deposits;
- the uncertainty of reserves and resources estimates, reserves life and underlying reservoir risk;
- the uncertainty of estimates and projections relating to production, costs and expenses;
- potential delays or changes in plans with respect to exploration or development projects or capital expenditures;
- changes in general economic and business conditions;
- fluctuations in oil and gas prices, foreign currency exchange rates and interest rates;
- the outcome and effects of completed acquisitions, as well as any future acquisitions and dispositions;
- the ability of the Company to integrate any assets it has acquired or may acquire or the performance of those assets;
- health, safety and environmental risks;
- uncertainties as to the availability and cost of financing and changes in capital markets;
- risks in conducting foreign operations (for example, political and fiscal instability or the possibility of civil unrest or military action);
- competitive actions of other companies, including increased competition from other oil and gas companies; and
- the Company's ability to implement its business strategy.
The foregoing list of risk factors is not exhaustive. Additional information on these and other factors which could affect the Company's operations or financial results are included in the Company's most recent Annual Information Form and Annual Financial Report. In addition, information is available in the Company's other reports on file with Canadian securities regulatory authorities and the United States Securities and Exchange Commission.
Forward-looking information is based on the estimates and opinions of the Company's management at the time the statements are made. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law.
Gross Production
Throughout this press release, Talisman makes reference to production volumes. Such production volumes are stated on a gross basis, which means they are stated prior to the deduction of royalties and similar payments. In the U.S., net production volumes are reported after the deduction of these amounts. U.S. readers may refer to the table headed "Continuity of Proved Net Reserves" in Talisman's most recent Annual Information Form for a statement of Talisman's net production volumes by reporting segment that are comparable to those made by U.S. companies subject to SEC reporting and disclosure requirements.
Boe Conversion
Throughout this press release, the calculation of barrels of oil equivalent (boe) is calculated at a conversion rate of six thousand cubic feet (mcf) of natural gas for one barrel of oil and is based on an energy equivalence conversion method. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalence conversion method primarily applicable at the burner tip and does not represent a value equivalence at the wellhead.
FOR FURTHER INFORMATION PLEASE CONTACT:
Talisman Energy Inc. - Media and General Inquiries:
David Mann
Vice-President, Corporate & Investor Communications
(403) 237-1196
(403) 237-1210 (FAX)
or
Talisman Energy Inc. - Shareholder and Investor Inquiries:
Christopher J. LeGallais
Vice-President, Investor Relations
(403) 237-1957
(403) 237-1210 (FAX)
Email: tlm@talisman-energy.com
Website: www.talisman-energy.com
The close: 2009 in the red
Monday, January 12, 2009
Just a week ago, investors might have been contemplating how high Canada's S[amp]amp;P/TSX composite index could rise after bouncing about 24 per cent from its low in November and posting impressive gains at the start of 2009. Now, they're back to contemplating how low the index can go.
On Monday, the S[amp]amp;P/TSX composite index closed at 8793.33, down 291.85 or 3.2 per cent. For the year, it is now down 2.2 per cent – the first time in 2009 that it has closed at a loss – but is still about 15 per cent above its November low.
Commodity producers were big casualties. Energy stocks fell after the price of crude oil meandered below the $40 (U.S.) a barrel threshold, this time falling to $37.59 a barrel, down $3.24. Suncor Energy Inc. fell 4.8 per cent and Canadian Oil Sands Trust fell 5.4 per cent.
Gold also fell, to $821 an ounce, down $34, which of course hammered gold producers. Barrick Gold Corp. fell 3.1 per cent and Kinross Gold Corp. fell 3.5 per cent. To cap things off, fertilizer companies also had a bad day, with Potash Corp. of Saskatchewan Inc. falling 11.1 per cent.
But this was not just a commodities story. It didn't help that the Bank of Canada's Business Outlook Survey for the fourth quarter, released on Monday, pointed to deteriorating economic conditions: The survey of senior managers suggested a decline in sales, capital spending and hiring among Canadian companies.
This seems to have frightened investors out of just about everything, including banks, after sentiment in the United States again turned sour on financials. Bank of Nova Scotia fell 5.2 per cent and Toronto-Dominion Bank fell 2.5 per cent.
In the United States, the day's losses were less severe, though still ugly. The Dow Jones industrial average closed at 8474.05, down 125.13 points or 1.5 per cent. The broader S[amp]amp;P 500 closed at 870.26, down 20.09 points or 2.3 per cent.
Financials were whacked, with Citigroup Inc. falling 17 per cent after reports that it could sell a controlling stake in its brokerage unit to Morgan Stanley. Bank of America Corp. fell 12 per cent on a report that its dividend could be slashed dramatically.
Alcoa Inc. fell 6.9 per cent before releasing its fourth quarter results – the first in the Dow to do so – after markets closed. The aluminum producer announced a loss of nearly $1.2-billion, or $1.49 a share, far worse than analysts had expected. Sales fell 19 per cent from last year.
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