- About Our Report
- About Our Company
- Where We Operate
- 2010 Performance at a Glance
- President's Message
- How We Manage Corporate Responsibility
- Safety
- Environment
- People
- Communities
- Progress Against 2009 Targets and Future Plans
- Key Numbers
- Global Reporting Initiative/United Nations Global Compact Index
- Key Performance Indicators
- Forward-Looking Information
- Corporate Information
- How to Get Information about Talisman
This corporate responsibility report contains or incorporates by reference 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, but is not limited to, statements regarding:
- business strategy, plans, goals, objectives and outcomes;
- expectations of growth, onstream timing, drilling and exploration in Southeast Asia;
- expectations of future economic conditions;
- expected results from the Talisman’s portfolio of oil and gas assets;
- the potential of shale gas and shale gas development within Talisman’s asset portfolio;
- the company’s international exploration strategy and expected discoveries; implementation of water consumption intensity and protection performance indicators;
- HSSE/OA and people standards, strategies, goals, management systems, programs and policies;
- 2011 performance targets, objectives and policies in HSSE/OA, safety, environment, community relations and people;
- safety priorities, goals and development of safety initiatives and systems (for example, the development of global standards on well control);
- expected environmental initiatives and practices, including water management practices related to North American shale operations;
- implementation of global safety standards and rules;
- reductions in lost-time injury frequency;
- reductions in unintentional hydrocarbon releases and spills;
- reductions in backlog of overdue safety critical repairs and preventative maintenance;
- contributions to community investments;
- implementation of 360-degree review process for next-generation leaders; and
- the expectation that the company’s values will ensure continued success.
The forward-looking information listed above is based on Talisman’s 2011 capital program as announced on January 11, 2011. Talisman set its 2011 capital expenditure plans assuming: (1) Talisman’s production in 2011 will be approximately 5 to 10% greater than 2010, excluding the BP Colombia acquisition; (2) a WTI oil price of approximately US$75/bbl; and (3) a NYMEX natural gas price of approximately US$4/mmbtu. 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 that 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 corporate responsibility report. 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 prices and demand and unpredictable facilities outages;
- risks and uncertainties involving geology of oil and gas deposits;
- uncertainty related to securing sufficient egress and markets to meet shale gas production;
- 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;
- the impact of the economy on the ability of the counterparties to the company’s commodity price derivative contracts to meet their obligations under the contracts;
- potential delays or changes in plans with respect to exploration or development projects or capital expenditures;
- fluctuations in oil and gas prices, foreign currency exchange rates and interest rates;
- the outcome and effects of any future acquisitions and dispositions;
- health, safety and environmental risks, including risks related to the possibility of major accidents;
- uncertainties as to the availability and cost of credit and other 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);
- changes in general economic and business conditions;
- the possibility that government policies or laws may change or governmental approvals may be delayed or withheld, including with respect to shale drilling; and
- results of the company’s risk mitigation strategies, including insurance and any hedging activities.
The foregoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect the company’s operations, financial results or strategy are included in Talisman’s most recent Annual Information Form. In addition, information is available in the company’s other reports on file with Canadian securities regulatory authorities and the SEC.
Forward-looking information is based on the estimates and opinions of the company’s management at the time the information is presented. The company assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change, except as required by law.
Talisman makes reference to production volumes throughout this corporate responsibility report. Where not otherwise indicated, 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 US, net production volumes are reported after the deduction of these amounts. US readers may refer to the table headed “Continuity of Net Proved 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 US companies subject to SEC reporting and disclosure requirements.
Natural gas is converted to a barrel of oil equivalent (boe) at the ratio of six thousand cubic feet (mcf) to one barrel of oil (bbl). Oil is converted to natural gas equivalent (mcfe) at the ratio of one bbl to six mcf of natural gas. The boe and mcfe measures may be misleading, particularly if used in isolation. A boe conversion ratio of six mcf to one bbl and a mcfe conversion ratio of one bbl to six mcfe are based on an energy equivalence conversion method primarily applicable at the burner tip and does not represent a value equivalence at the wellhead.