We have been asked by Talisman management to review the assertions presented in the Company’s Corporate Responsibility Report (Report) for the year ended December 31, 2003. Preparation of the Report is the responsibility of Talisman management.

We have reviewed the assertions in the Report marked with the symbol . Our review was conducted in accordance with generally accepted standards for review engagements. The process that we used to carry out our review is illustrated on page 7. Our review focused only on Talisman’s assertions relating to performance and management processes. We did not review Talisman’s assertions relating to commitments, beliefs, and future objectives.

The section of the Report titled “Economic Performance” contains financial performance information extracted from Talisman’s audited financial statements, which we did not review.

Based on our review, the information marked with the symbol is supported by appropriate underlying evidence. Nothing has come to our attention that causes us to believe that these assertions require material adjustment.

Signed,



PricewaterhouseCoopers LLP
Calgary, Alberta
March 2, 2004

PricewaterhouseCoopers Review Approach

Talisman Energy asked us to review management’s assertions regarding the Company’s corporate responsibility performance and management processes.

In developing our approach to the review of individual assertions, we obtained, examined and evaluated evidence supporting the assertions using a variety of procedures, including:

• One-on-one interviews with relevant Talisman management, staff and third party service providers;
• Consideration of relevant management systems, processes and controls;
• Review of relevant internally and externally generated documents and records, including correspondence with external parties;
• Comparison of company assertions to third party information available publicly on the Internet; and
• Sample testing and re-computation of performance data where appropriate.

Our review work was carried out in Calgary, Canada and Aberdeen, Scotland by two interdisciplinary teams from Calgary and London (UK). The teams comprised individuals with backgrounds and experience in environment, health and safety, social, economic and financial assurance. In total, our review required approximately 550 hours of professional time.

We focused our review mainly on information relating to the Company’s Canadian and North Sea operations, which together represented approximately 82% of Talisman’s worldwide production in 2003.

With the exception of the North Sea operations, we did not visit Talisman’s international locations. Information relating to these other operations was collated and reviewed at the Calgary head office.

Some statements in the Report, such as commitments, beliefs and future objectives, are inherently not ‘auditable’, and others elements of the report, such as the President’s Message, were outside the scope of our work. We did, however, read these sections to ensure they were not inconsistent with our conclusions.

The professional standards established by the Canadian Institute of Chartered Accountants with respect to assurance engagements define two levels of assurance: audit level and review level. The work that we carried out on all of the assertions that we examined and marked with the symbol, met, and in many areas, exceeded, the level of work necessary to support a review level report. However, in aggregate, the work that we carried out does not allow us to provide an audit level of assurance on the assertions. Nonetheless, the conclusions that we reached through our review are supported by rigorous and significant procedures conducted in accordance with appropriate review standards.

The approach used for our review is illustrated in the diagram below.

In addition to our review, we collated and analyzed the reader feedback cards from Talisman’s 2002 Corporate Responsibility Report. These cards were mailed directly to PricewaterhouseCoopers Calgary by readers throughout 2003. A total of 60 feedback cards were received. We have read through these cards and have provided Talisman with a representative sample of readers’ comments. Some of these readers’ comments are presented in this Report.