The Greater Angostura project

Although North America, the North Sea and Southeast Asia accounted for 97% of Talisman’s production in 2004, the Company continues to look for development opportunities where it can apply its international skills. Talisman is also active in a number of high risk, high reward exploration plays, utilizing its expertise in structurally complex geological settings.

Algeria

Talisman has a 35% non-operated interest in the Greater MLN project in Block 405a located in eastern Algeria. In addition, the Company has a 2% interest in the unitized Ourhoud field. Liquids production in 2004 averaged 13,537 bbls/d, compared to 6,594 bbls/d in 2003, mainly as a result of a full year of production from Greater MLN.

In 2005, Talisman plans capital spending of approximately $55 million, which includes drilling 14 development wells. Talisman is also planning development of the MLSE complex.

Talisman’s share of production is expected to average between 15,000-17,000 bbls/d in 2005.

Trinidad and Tobago

Talisman has a 25% non-operated interest in the Greater Angostura project, a major oil and gas development in Block 2(c) offshore Trinidad. During 2004, a central processing platform, three wellhead platforms, export pipeline and new terminal facilities were installed. Field development is now complete and first oil production from the platform was announced in January 2005.

The production target for 2005 is 12,000-16,000 bbls/d of oil and plans include further exploration and development drilling.

Onshore, Talisman completed a major 3D seismic acquisition program on the Eastern Block. Seismic data is being interpreted to define a drilling program, which will commence in 2005.

Total capital spending in 2005 is estimated to be approximately $100 million, which includes participation in eight development and up to eight exploration and appraisal wells.

Alaska

The Company has developed a strategic land base in Alaska, on trend with a number of very large oil discoveries and now holds nearly 450,000 acres of exploration lands.

Columbia

In Colombia, Talisman has non-operated interests in various blocks. In mid-2004, the Company began drilling the Tangara-1 exploration well (Talisman 30%) on the Tangara block. The well is expected to drill until approximately the end of the first quarter of 2005.

Talisman’s 2005 capital spending program in Colombia is expected to be $8 million.

Peru

In Peru, Talisman acquired a 25% non-operated interest in Block 64 in the Marañon basin. An exploration well drilled in 2004 encountered drilling problems and was unable to reach the target formation.

The Company’s 2005 capital spending program is expected to be $13 million, primarily to fund drilling a second exploration well, which spud in early 2005.

Qatar

Talisman holds a 100% interest in Block 10 offshore Qatar. During 2004, the Company completed 3D seismic acquisition. Interpretation of the seismic data is under way and is expected to lead to the drilling of an exploration well in October 2005.

Talisman’s 2005 capital spending program for Qatar is $15 million.