Talisman Will Trim Marcellus Exploration

May 2012, Vol. 239 No. 5

Canada’s Talisman Energy is making even heavier cuts to its rig count in the Marcellus Shale natural gas play and will not reverse that trend until gas prices return to $4 per Mcf, CEO John Manzoni said.

Along with slashing its Marcellus 2012 spending to $600 million from $1.2 billion in 2011, he said, the number of rigs at work in the play in 2012 will be cut to three from 10 in 2011 because of a North American gas price that clearly reflects an excess of supply.

Manzoni said prevailing gas prices are “unsustainable in the medium term, but we think they may last a year.”

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