Canadian oil and gas producer Talisman Energy Inc. said Tuesday it will spend between $1.1 billion and $1.3 billion on developing new natural gas projects in North America through the end of 2009.
The company also will sell off some of its operations as it seeks to grow annual production by 5 to 10 percent annually between 2009 and 2012.
The spending will go toward drilling new wells and establishing pilot programs to evaluate the potential of the company's 2.5 million acres in North America.
The investment is expected to boost capital spending by $500 million this year, to $4.9 billion. Next year's capital budget is likely to rise to $5.8 billion, Talisman said.
The company said it will also continue to invest in existing operations in North America and the North Sea, and sees additional growth potential in Southeast Asia, North Africa and South America.
Talisman plans to sell off the equivalent of 35,000 to 40,000 barrels of daily oil production. The company expects to earn $1.5 billion to 2.0 billion from the divestiture by the end of next year.
Talisman is based in Calgary, Alberta. Shares rose 69 cents, or 2.8 percent, to close at $25.09.
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