Talisman’s 2003 Corporate Contributions (thousands of Canadian dollars)
	Canada	US	UK	Indonesia	Malaysia/ Vietnam	Colombia	Trinidad	Algeria	Sudan	Total
Operated	1,602	54	662	95	23	—	161	20	1,494	4,111
Non-Operated	—	—	—	659	—	112	107	72	—	950
Total	1,602	54	662	754	23	112	268	92	1,494	5,061

In 2003, we contributed approximately $5.1 million to hundreds of community projects across our global operations. In 2002, Talisman’s community contributions totaled $9.7 million. The reduction in community development spending is mainly due to the sale of our interest in Sudan. The following provides highlights of our community partnerships and projects around the world.

Talisman’s $10 million, 20-year commitment to the Building Healthier Futures expansion and improvement project helped an additional 500,000 people enjoy Talisman Centre’s facilities last year.

Since 1999, Talisman has annually increased its community giving programs in Canada and in 2003, contributed over $1.6 million to support health and welfare, the arts, education, the environment and community causes. Decisions on contributions are made by representatives from across the Company through our Corporate Contributions Committee.

“Investing in our Communities” Program

Talisman’s “Investing in our Communities” program helps employees give back to the communities in which we operate.The program provides up to $200 to organizations our full-time employees volunteer with, such as little league teams and community associations. In 2003, Talisman invested approximately $38,000 through the “Investing in our Communities” program, an increase of 8% over 2002.

Talisman Centre

In 2003, Talisman provided the second instalment in our $10 million, 20-year commitment to the Lindsay Park Sports Society’s Building Healthier Futures expansion and improvement project. Talisman Centre now features a new double gymnasium, a 50-metre swimming pool, a walking track, a Lifestyle Centre for people with disabilities, a 20-person therapeutic hot tub, family and caregiver change rooms, new meeting and classroom space and expanded locker rooms, weight room, cardiac and sports medicine services and improved customer service facilities.

United Way

In 2003, Talisman contributed over $663,000 to Calgary’s United Way campaign thanks to more than $327,000 in employee donations, Talisman’s corporate match of $327,000, as well as numerous fundraising activities. Talisman’s 2003 donation exceeded our goal of $600,000 by 11%. Talisman employees also contributed 490 volunteer hours to the United Way’s “Days of Caring” program during the year. The Company also supported the Calgary Mustard Seed, the Association For the Rehabilitation of the Brain Injured and the Bowness Senior Citizens Center through the program.

• Talisman continued its five-year, $500,000 contribution towards the purchase of a new MRI (magnetic resonance imaging) unit at the Alberta Children’s Hospital.
• In November 2003, Talisman announced a three-year, $100,000 commitment to the Grande Prairie QEII Hospital Foundation for a revamped Neo-Natal Intensive Care Unit.
• Talisman made a two-year, $20,000 commitment to support the Carlyle and District Leisure Complex.
  

Respecting Diverse Cultures — Aboriginal Relations

Talisman recognizes and respects the unique culture and history of aboriginal peoples and works cooperatively in the areas where we operate. Talisman also consults with aboriginal communities in North America to develop an understanding of mutual interests and maintain a positive working relationship. We consider the unique culture of each community when designing and carrying out our activities. We collaborate with industry peers and all levels of government to work effectively with aboriginal communities. We encourage all coventurers to support aboriginal education, training and economic development programs.

In February 2003, Talisman developed formalized Aboriginal Relations Guidelines, which guide our relations with all aboriginal communities across North America. Talisman’s Aboriginal Relations Guidelines are consistent with our policies and procedures including the Policy on Business Conduct and Ethics and are available to all employees on our internal website. These guidelines also apply to our principal contractors.

Aboriginal Community Investment

In 2003, Talisman refocused and redeveloped its aboriginal community investment strategy to formalize efforts to help build strong aboriginal communities. Central to this revision was the specific creation of an Aboriginal Community Investment Fund, which supports youth, education, training and health and wellness programs in aboriginal communities that will better equip aboriginal people to participate in the economic opportunities associated with our activities. Though in its infancy, Talisman invested about $150,000 through the fund in 2003, including:

Peigan Blessing Ceremony Talisman respects the importance of traditional activities and locations that hold spiritual or cultural significance for our aboriginal neighbours. In July 2003, the Peigan First Nation was consulted regarding a number of wells Talisman proposed to drill within the Porcupine Hills area in Alberta — an area of traditional significance to the Peigan First Nation. During the consultation, Talisman was asked if there could be a blessing ceremony for the project. In keeping with the traditions of the Peigan First Nation, the ceremony took place in order to bless the land where the project was to take place. The ceremony included prayers for the participants, wishes for success and a tobacco offering to the earth. Talisman’s project team joined Peigan Elders at this sacred event.

Participation in petroleum career training and adult education programs that help build skills and capacity, such as the Petroleum Careers Training Program for Fort Nelson and Prophet River First Nations and Muskoti Learning Centre for Adult Upgrading with the Saulteau First Nation.

Support of aboriginal awards, scholarships, bursaries and student centres on campuses for aboriginal students at the universities of Calgary and Alberta, regional colleges in Grande Prairie and Fort St. John and at the Southern and Northern Alberta Institutes of Technology.

Funding for a new Metis elders’ shelter in Grande Prairie, a Back-to-School Program for urban aboriginal youth and cultural community centres in Doig River and Saulteau First Nations in British Columbia.

Forty-two Talisman employees participated in aboriginal cross-cultural awareness courses in 2003 and two Talisman employees attended a three-day cultural camp hosted by the Aseniwuche Winewak Nation.

Employment and Economic Opportunities

Talisman values the benefits of a diversified workforce and we give fair consideration for employment and contract opportunities to aboriginal individuals and businesses. We seek opportunities to eliminate work experience obstacles for aboriginal workers through our support of a summer student in Grande Prairie and the provision of work experience terms in Fort St. John and Chetwynd.

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Community Development in the United Kingdom

In 2003, Talisman (UK) donated two wooden play features to the neighbouring Ferryhill Primary school in Aberdeen.

In 2003, Talisman (UK) provided the second instalment in our two-year, $530,000 commitment to the ARCHIE (Aberdeen Royal Children’s Hospital is Excellent!) Foundation. Talisman’s contribution supported the completion of a state of the art child and family facility, including lounge areas, parental overnight accommodation and a variety of play areas and gardens. The Foundation also received over $5,200 through Talisman (UK) employee donations.

In Aberdeen, Ferryhill Primary School’s play areas were given a new lease on life thanks to a range of improvements and the addition of new equipment. The centrepieces of the new-look junior and senior playgrounds are a wooden locomotive and low-level adventure trail donated to the school by Talisman (UK). Both play areas have been resurfaced, new benches and seats have been installed and traditional playground games have been painted on the ground.

Tree Planting and More in Trinidad

In July 2003, Talisman supported the local area hunters’ associations with their annual tree planting drives, which educate local communities and members of the associations about the importance of planting trees to mitigate human impacts on the environment. The Southeast Hunters Association distributed 15,000 seedlings to local schools for planting in various locations. This group also held a seminar in September to discuss the sustainable management of forests and other topics.

Talisman Supports Earthquake Relief Efforts In December 2003, Talisman supported earthquake relief efforts in Iran’s southeastern province of Kerman by contributing $10,000 to the Canadian Red Cross’ drive to maintain clean water and to provide medical assistance and shelter. Talisman also supported similar earthquake relief efforts in Algeria in July 2003 by providing $20,000 in funding for medical equipment and supplies. Talisman (UK) also contributed approximately $5,000 for the Algerian relief effort through funds raised by employees and a corporate match.

Talisman employees visited primary schools within our area of activities to better understand the challenges faced by these schools. As a result, Talisman supplied pens, pencils, rulers and notebooks to about 3,000 students.

Community Development in Indonesia

Talisman’s community efforts in Indonesia focus on health, social, water, education and infrastructure initiatives. The majority of projects are related to our Corridor project on the island of Sumatra, where we are a non-operating coventurer.

Health-related projects included nutritional programs for children, supplying medical equipment and providing health and wellness seminars. Social activities focused on providing financial assistance for various cultural seminars, sports-related activities and economic empowerment of local villages with improved agricultural techniques. Water projects included the supply of water tanks and pumps and drilling water wells. Educational assistance included funding for books, uniforms and scholarships. Infrastructure investment assisted with the repair or construction of schools, medical facilities and community structures.

In October 2003, about 95 Talisman employees and family members participated in the Kuala Lumpur Terry Fox Run.

In April 2003, Talisman Malaysia sponsored a project for the preservation of corals and a beach cleanup at the International Marine Park on Perhentian Island, off the coast of Terengganu,
west of Malaysia.

In October 2003, about 95 Talisman employees and family members participated in the Kuala Lumpur Terry Fox Run in memory of Canadian Terry Fox and his 1980 dream to run across Canada to raise funds for cancer research. Participants in the Kuala Lumpur Run walked, ran, or cycled the five-kilometre route in memory of Terry’s courageous journey and to raise awareness and funds for cancer research in Kuala Lumpur.

Community Development in Colombia

Talisman’s Ongoing Commitment in Sudan

When Talisman announced the sale of its indirect interest in Sudan to ONGC Videsh Limited (OVL), a subsidiary of India’s national oil company, in October 2002, Talisman publicly stated that it would continue funding community development programs in Sudan through 2005. To ensure proper stewardship and support for these programs and to locate new funding partners, Talisman has opened a community development legacy office in Sudan. An expatriate Community Development Manager and four Sudanese community development staff monitor our social programs and conduct meetings with other potential funding partners.

Talisman continues to seek new funding partners for those programs which will not become self-sufficient, including funding through OVL and other organizations. Talisman introduced OVL to the community development programs with a tour through the Greater Nile Petroleum Operating Company (GNPOC) concession in 2003, where many of the programs are located.

In 2003, 45 farmers participated in the Unity State Model Farm, learning improved farming techniques that will help increase food availability, reduce dependency on aid assistance and improve investment in the local markets.

Arrival of Hospital Supplies at Shendi Teaching Hospital Following a visit to Sudan in early 2000, Dr. Keith Martin, Canadian Member of Parliament for Esquimalt-Juan de Fuca, British Columbia, organized the collection of medical supplies, equipment and medication to be donated in Sudan. In 2002, Talisman agreed to cover all shipping and transportation costs for two vessels containing such items as hospital beds, clothing, sheets, stretchers, orthotic and other specialized equipment. In early 2003, two containers were delivered to the Shendi Teaching Hospital, a 200-bed teaching hospital providing medical services to more than 500,000 people living in the area. Since 2002, Talisman’s contributions to the Shendi Hospital supported complete renovations to the water and sanitation systems and the in-patient wards. “I am deeply grateful to Talisman Energy Inc. for the financial contribution that enabled us to provide urgently needed medical supplies to some of the neediest people in the Sudan. This was an excellent example of corporate social responsibility that used the financial capabilities of a company working in a country to help citizens most in need. Money provided by Talisman went directly to help the people on the ground with no bureaucratic overhead. This is a model that can and should be replicated elsewhere.” Keith Martin, Canadian MP for Esquimalt-Juan de Fuca, British Columbia

In 2002, Talisman launched the Unity State Model Farm located within the GNPOC concession at Rubkona, with a mandate to instruct indigenous farmers in improved farming methods to help increase food availability, reduce dependency on aid assistance and improve investment in the local economy.

In 2003, 45 farmers participated in the Model Farm. Poultry farming and vegetable production programs resulted in the sale of eggs and vegetables to local oil facilities and local markets.

Agriculture and Community Development Program

In 2001, Talisman began funding an Agriculture and Community Development program in and around the GNPOC concession, principally at Kailak Lake. In 2002, the program was expanded to include education in the areas of health care and diversified farm products. New farm products were introduced through the program in 2003 to provide improved nutrition and income generating opportunities in about 30 villages located along the pipeline in the Nuba Mountains and within the GNPOC concession, including Kailak Lake, Debap, Paryang and Biu.

Basic Adult Learning and Training

In 2003, Talisman introduced its Basic Adult Learning and Training program to improve adult literacy by providing training opportunities to help those who live there. Participation in the initial training period included people from Kailak Lake, Rubkona, Bentiu and Paryang villages. The program provides basic adult learning in conjunction with complementary self-generated entrepreneurial opportunities. Effectively ’teaching the teachers’, initial students in the program are now facilitators in their own communities.