Following the latest quarterly results, Talisman Energy Inc. (TSE: TLM) will not continue devoting more money to exploring Quebec’s shale gas sector, a decision further affected by the fact that the new Parti Québécois government has indicated its grave concerns over fracking.
The Globe and Mail quotes Talisman’s report:
“During the three month period ended September 30, 2012, the company determined that it would not commit capital in the foreseeable future to exploration and evaluation activities in Quebec, where the prohibition regarding hydraulic fracturing for shale gas development has been reaffirmed,” Talisman says in its report.
Former Liberal premier Jean Charest set in motion a moratorium on fracking in early 2011, and a study is presently in progress examining the feasibility and risks of fracking. The study will conclude in or after 2014.
The PQ government has also ordered a second study by the independent Bureau d’audiences publiques sur l’environment (BAPE).
And finally, Quebec’s new Natural Resources Minister has publicly stated that she may indeed ban fracking completely.
Talisman reported a net loss of $731 million stemming mainly from asset writedowns like shale operations in Quebec and offshore efforts in Norway.
For the third quarter, Talisman posted total losses equal to 71 cents per share against a net income of $521 million or 51 cents a share a year ago. This does not bode well for Talisman’s new president and CEO, Hal Kvisle.