Talisman Energy and Ecopetrol To Acquire BP Exploration Company Colombia: Strategic Development in the Region – Deal Analysis From GlobalData

Introduction

Talisman Energy Inc., (Talisman) and Ecopetrol S.A., (Ecopetrol) agreed to acquire all the outstanding shares of BP Exploration Company Colombia Limited (BPXC) from BP p.l.c., (BP) for a cash consideration of $1,900m, including a working capital adjustment which is estimated at approximately $145m.

The transaction implies deal values of $40,000 per boe of daily production, $13.33 per boe of proved reserves and $10.2 per boe of 2P reserves.

Scope

- Rationale behind Talisman and Ecopetrol jointly acquiring BP's Colombian assets
- Strategic Benefits for the companies involved
- Geography covered -Colombia

Highlights

Reasons to buy

- Develop a sound undestanding of the major M&A's, Partnerships, And Joint Ventures taking place in South American Oil & Gas industry
- Identify the most lucrative segments to leverage on the growth oppurtunities available in the Colombian oil & gas market
- Get a detailed analysis of a deal to enable you to take better decisions

Report Highlights

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TABLE OF CONTENTS

1 Table of Contents 1
1.1 List of Tables 3
1.2 List of Figures 3
2 GlobalData Deal Analysis 4
2.1 Summary 4
2.2 Deal Overview 4
3 Talisman Energy & Ecopetrol To Acquire BP Exploration Company Colombia 4
3.1 Deal Overview 4
3.2 Deal in Brief 4
3.3 Talisman intends to acquire BP’s assets to expand its Colombian assets 4
3.4 Ecopetrol intends to acquire BPXC to increase its production and transport business 8
3.5 The Gulf of Mexico disaster initiates BP’s huge divestments 10
3.6 BP suffering heavily in paying the claims of Gulf Of Mexico disaster 11
3.7 BP Falling Prey to the Circling Sharks of the Oil and Gas Industry 11
3.8 Talisman is Divesting its Non-Core Assets to Focus on More Profitable Business 11
3.9 Deal Financials and Valuations 13
3.9.1 Companies Involved 13
3.9.2 Deal Financials 13
3.9.3 Deal Rationale 13
3.9.4 Advisor Information 13
3.9.5 Detailed Target Information 14
3.9.6 Commodity Prices Information 14
3.9.7 Production and Reserves Information 15
3.9.8 Transaction Implied Values 15
3.9.9 Talisman Energy Inc. Detailed Acquirer Information 16
3.9.10 ECOPETROL S.A. Detailed Acquirer Information 16
3.9.11 Detailed Vendor Information 17
4 Appendix 18
4.1 About Energy eTrack 18
4.2 Methodology 18
4.2.1 Coverage 18
4.2.2 Secondary Research 19
4.2.3 Primary Research 19
4.2.4 Expert Panel Validation 19
4.3 Contact Us 20
4.4 Disclaimer 20
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LIST OF TABLES

1.1 List of Tables
Table 1: Talisman, Asset Acquisition Details, 2009-10 6
Table 2: Ecopetrol, Asset Acquisition Details, 2009-2010 8
Table 3: Talisman Energy, Asset Divestment Details, 2008-10 12
Table 4: Companies Involved 13
Table 5: Financials of the Deal 13
Table 6: Advisor Information 13
Table 7: Target Information 14
Table 8: Commodity Prices in $, Last Close 14
Table 9: Target’s Production and Reserves Information 15
Table 10: Company Valuation Multiples 15
Table 11: Talisman Energy Inc. Acquirer Information 16
Table 12: ECOPETROL S.A. Acquirer Information 16
Table 13: Vendor Information 17
LIST OF FIGURES

1.2 List of Figures
Figure 1: Talisman, Operations Map, 2010 5
Figure 2: Talisman, Revenue Details, 2006-09 7
Figure 3: Talisman, Colombia, Operations Map, 2010 7
Figure 4: Ecopetrol, Revenue Details, 2006-09 9
Figure 5: Deepwater Horizon Drilling Rig, Location, 2010 10
Figure 6: GlobalData Methodology 18
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