Talisman-operated PM-3 CAA facilities in Malaysia/Vietnam

Talisman differs from its North American based peers with its international diversity. North America accounts for 47% of total production and the North Sea 32%. Talisman also has production in Southeast Asia, Trinidad and Tobago and Algeria. This diversity provides the Company with a range of opportunities to grow and add value and lessens the risk associated with operating solely in one area. Talisman has an 11-year track record as a successful international operator.

Talisman has highly trained, experienced exploration staff with world-class expertise in complex structural and carbonate geology. Talisman is an established international operator with expertise in cost effective operations and managing major developments both onshore and offshore. In the UK North Sea, Talisman is one of the largest operators of infrastructure. Talisman also has extensive expertise in reservoir engineering (maximizing recovery from mature fields) and drilling technology (deep horizontal wells, extended-reach drilling) to ensure optimum recovery rates and safe, efficient, low cost drilling operations.

In addition, Talisman has world-class commercial skills. Over the past five years, the Company has concluded approximately $5 billion worth of corporate and asset acquisitions and sales, both international and domestic.

Talisman is the leading deep gas explorer in Canada. The Company has added more natural gas production at depths below 10,000 feet than any of its competitors. Talisman has added two-to-three times the industry average reserves per new gas discovery. The Company has also pioneered a new deep natural gas play in upstate New York.

In Southeast Asia, Talisman has 2.2 tcf of proved natural gas reserves, underpinning long-term sales contracts. These legacy assets provide a solid base for growth in the region. In Malaysia/Vietnam, Talisman has drilled more wells than any other independent oil and gas company over the past three years.

Talisman played an integral part in the largest oil discovery in Trinidad and Tobago in the past 20 years, with production startup in January 2005. The Company is also producing oil in Algeria.

Talisman has an inventory of high impact exploration opportunities in Alaska, Qatar, Colombia and Peru. Although these drilling opportunities have a relatively high degree of risk associated with them, the potential rewards, in the 50-500 mmbbls range, make them attractive investments for the Company and its shareholders.