A Well Executed and Consistent Strategy

Talisman’s purpose is to create value for its shareholders and we have set a target of 5-10% annual production per share growth. The Company’s strategy was formulated in 1993, predicated on the following:

• Energy is a vital business. World demand for energy will continue to increase with economic and population growth. Companies that can efficiently grow their underlying reserves and production per share will create value for their shareholders.
• The traditional oil and natural gas business in North America is relatively mature and very competitive. In order to grow and add value, Talisman will search out larger opportunities either in North America or internationally.

Talisman is predominantly an upstream company and this is where our expertise lies. Our belief is that successful exploration and development drilling creates the most value for shareholders. The Company has diversified its operations and opportunities, focusing on deep gas in North America and large international projects. This lessens risk and provides Talisman with a diverse set of opportunities.

Talisman also prefers to operate and maintain high working interests. This enables us to have better control over project timing, costs and implementation. Talisman operates approximately 80% of its production in North America, 65% in the North Sea and all of its production in Malaysia/Vietnam.

In addition, the Company is pursuing a select number of high impact exploration opportunities. Although these prospects typically involve higher risk, a large successful discovery would add significant value. The various projects we are currently developing (Tweedsmuir, South Angsi, Angostura and some parts of PM-3 CAA) are the result of Talisman’s previous exploration success.