Talisman has reported record quarterly net income of $1.4 billion, up 305 percent year on 10 percent more oil and gas produced, overshadowing delayed production in Vietnam .

Company earnings from operaitons were up 189 percent to $731 million. Better trading results and new production helped hike cash flow 48 percent to $1.7 billion, nearly another record.

The result was also helped by the sale of company assets in The Netherlands plus three oil sands leases.

Elsewhere in the North Sea, Talisman said it had attained $80 for each barrel of oil equivalent produced in the U.K. sector. Company U.K. North Sea production was up 20 percent to 107,000 bpd, helped by 28 percent more from Tweedsmuir.

No investment plans for 2009 have were aired on the good news, but the company said it was tweaking and “high-grading” spending on certain projects. “Capital programs for next year will be adjusted to ensure that we maintain our current balance sheet strength and liquidity levels through a period of weaker commodity prices,” chief exec John Manzoni said in a statement.

Within the next six months, exploration wells will be drilled at the Godwin and Shaw prospects in the vicinity of the recent Cayley discovery. In Norway, flows wer up 21 percent over Q3 2007 on more from new wells at Brage, Gyda, Varg and the Blane field. During the quarter, Talisman drilled two development wells at Gyda and two at Varg.

At the Rev development, work to complete the Rev topsides at the Armada platform has re-started. First production is expected in early 2009.

The Yme development is proceeding towards first production in the second half of 2009. During the quarter an offshore submerged storage tank was installed at Yme, subsea pipeline installation work was begun and only development remains for fourth quarter.

Around the world, key wells in Kurdisatan, at Godwin in the United Kingdom, at TR3 in Norway and TQ-3 in Qatar all bod well for more production. Plans for the he Hai Su Trang and Hai Su Den fields are also moving toward approval.

Uncoventionally, Talisman is collecting shale acreage and drilling, with over 200 wells drilled this year. Shale gas tests in Quebec and Pennsylvania have shown 158 million cubic feet per day, up 13 over the same span last year.

Tags: Talisman Energy