Talisman develops fields, tests wind in North Sea

The company said it expects drilling at Tweedsmuir to begin next year with production starting in 2006. The oil will be processed using is existing Piper platform and pipeline to the Flotta terminal in Orkney.

Calgary-based Talisman pegged the development cost at C$770 million ($588 million). It holds an 87.43 percent working interest in the fields with an option to acquire 7 percent more. First Oil Expro Ltd. has a 5.57 percent working interest.

Talisman estimates the fields contain gross probable reserves of 71 million barrels of oil equivalent, with 87 percent liquid and 13 percent natural gas. It expects half those reserve to be reclassified as proven in its 2004 evaluation process.

The Tweedsmuir field, 100 miles (62 km) northeast of Aberdeen, Scotland, was discovered in 1983, but the main part of the field was not identified until 2002. Tweedsmuir South was discovered in 2003.

WIND TESTING TOO

Talisman also said it will construct a C$58 million demonstration wind farm adjacent to its Beatrice energy field off the Scottish coast.

The project will be the first wind farm to be tested in deeper off-shore water, where it will not have the visual impact problems of on-shore generating facilities.

"Initially, the two turbines will provide electric power for Beatrice and, if successful, we will evaluate a large scale commercial project, chief executive Jim Buckee said in a written statement.

Construction of the wind turbines is expected to begin late this year with electricity generation expected to start in late 2006, the company said.