Talisman Energy Confirms Approach By Several Parties, Including Repsol

(RTTNews) - Canadian oil and gas company Talisman Energy Inc. (TLM, TLM.TO) confirmed Monday that it has been approached by several parties, including Spanish oil company Repsol S.A. (REPYY.PK), with regards to various transactions. However, Talsiman Energy noted that there is no assurance any deal would be agreed.

"Until such time as it is appropriate to make a public announcement on any potential transaction, Talisman does not intend to make any further comment on this matter," Talisman said in a statement.

Respol, which is seeking to expand beyond Spain, sees Talisman's energy assets in the North America and Asia Pacific as a growth opportunity.

Bloomberg reported Monday that Repsol has revived talks with Talisman, as the Spanish company seeks to boost its presence in North America through acquisitions. The fall in oil prices to five-year lows also makes companies like Talisman more attractive targets.

According to the Bloomberg report, Repsol and Talisman are in talks about options that could include the sale of some assets or the whole company. However, Talisman's falling valuation remains an obstacle to any deal.

In addition, Talisman's assets in the North Sea, where output is declining and may result in writedowns before the year's end, remains another hurdle.

Repsol is said to have dropped a plan to acquire Talisman in August after concluding due diligence on the company. Talisman said in late July that it was approached by Repsol "with regards to various transactions".

In early November, Talisman Energy reported a profit for the third quarter, compared to loss in the year-ago period. The results reflected mainly mark-to-market gains on commodity derivatives that helped offset lower revenues. total production for the quarter declined 5 percent, primarily due to sale of the company's Montney, Monkman and Ojay dry gas assets this year.

TLM closed Monday's regular trading session at $3.74, down $0.20 or 508 percent on a volume of 17.50 million shares. However, in after-hours, the stock gained $0.24 or 6.42 percent to $3.98.

REPYY closed Monday's trading at $22.25, down $0.33 or 1.46 percent on a volume of 221,932 shares.