Talisman Energy (NYSE:TLM) Production Projection Lowered by Ticonderoga

Citing the Yme project in Norway, which won't get going until the middle of 2011, Ticonderoga lowered their production estimate for Talisman Energy (NYSE:TLM).

Ticonderoga says, "TLM announced its 2011 production and
capital expenditure guidance this morning. Capex for 2011 expected to be $4 billion, in line with 2010 and in agreement with our previous forecast. Production growth before including the new BP Colombia assets is forecast at 5-10%; we are currently forecasting 8.7%. RRC costs are expected to go down 25-30% in 2010, similar in 2011. Net net is a 2% increase in NAV to C$28.82.

"However, based on the announced mid-year start of the Yme project offshore Norway, we are reducing our production forecast in the relatively high price Scandinavia region, thereby lowering our 2011 earnings forecast 8% to C$1.45/share. We remain at Buy with a PT of C$27 given TLM’s continued ability to refine its focus and grow production."

Ticonderoga maintains a "Buy" rating on Talisman Energy, which closed Tuesday at $23.08, gaining $0.74, or 3.31 percent.