Oil and gas company Talisman Energy Inc. said Thursday it found natural gas in an emerging exploration play in west central Alberta.

The Canadian company, based in Calgary, Alberta, said it is still in the early exploration stage, but it estimates between 200 billion cubic feet and 300 billion of contingent and prospective natural gas resources on its Ram acreage. The Ram area is southwest of Talisman's successful Central Alberta Foothills structural play, and the company holds over 48,000 acres.

"The potential from the Ram area could be significant for Talisman," President and Chief Executive Jim Buckee said in a statement. "The discovery of potentially commercial gas in the Cambrian section represents a first in Alberta and a significant exploration success.

Talisman plans to spend about $100 million on equipment, infrastructure and drilling in the area next year. It has begun engineering work on the infrastructure needed to bring the gas to market, with construction expected to begin late this year.

Talisman expects first production in the third quarter of 2007.