Standard & Poor's Ratings Services today said Talisman Energy Inc.'s (BBB+/Stable/--) US$250 million property acquisitions in upstate New York would not affect the ratings and outlook on the company. The U.S. property acquisitions, which are contiguous to the Fairman properties acquired in November 2001, further expand Talisman's nascent U.S. operations. The property acquisitions will add 115 billion cubic feet (bcf) of gross proven reserves (or 100 bcf net of royalties). Although the unit purchase price at US$1.40 per thousand cubic feet (mcf), on a gross proven basis (or US$1.62/mcf on a net basis), is significantly higher than historic averages, modest development capital requirements, low operating costs, and the potential to realize significant netbacks at midcycle and low natural gas prices
