ABOUT THIS REPORT

This Report focuses on Talisman's corporate responsibility priorities set out in the Company's Policy on Business Conduct and Ethics (Policy or the PBCE), including: ethical business conduct; personal conduct; employee practices; health, safety and the environment; human rights; community relations; and compliance. The Report is a measurement and performance management tool that is not intended to be an exhaustive review of all activity that Talisman has undertaken or supported. Rather, Talisman aims to illustrate through the Report the breadth and scope of action that has been, and is being, taken.

Wherever possible, country-specific data has been used, while regional and aggregate data have also been included. Unless otherwise indicated, figures are reported in metric units and all financial information is reported in Canadian dollars. Unless the context indicates otherwise, a reference in this Report to "Talisman", the "Company" or "we" includes direct or indirect subsidiaries of Talisman Energy Inc. and partnership interests held by Talisman Energy Inc. and its subsidiaries. Although some narrative reference has been made, Talisman's acquisition of Paladin Resources plc in November 2005 is not reflected in the performance data summaries included in this Report except where noted. An independent third party, PricewaterhouseCoopers LLP (PwC), has reviewed the data noted in bold contained in the Performance Data Summary at the back of the Report (see page 37 for more information).

REPORTING PERIOD

This Report deals with the Company and its wholly owned subsidiaries operating around the world from January 1, 2005 to December 31, 2005. Talisman's last Report was published in April 2005 and the next edition is scheduled for publication in April 2007. This Report complements information found on our website at www.talisman-energy.com.

OUR STAKEHOLDERS

While the term "stakeholders" holds multiple meanings, the Company defines its stakeholders as its employees, shareholders, suppliers, service providers, and those communities, indigenous groups, investors, debtholders, governments, regulators and Non-Governmental Organizations (NGOs) affected by, or that can affect, Talisman's operations.

Performance Data Summary

Social
Workforce Practices
Number of full-time equivalent permanent employees	2,138
Number of full-time equivalent positions added	181
Voluntary Turnover Rate	4
New Graduates Hired	27
Number of cooperative education and summer students hired	136
Temporary or contract employees	1680
Number of employees in flexible work arrangements	100
Number of employees represented by independent trade union organizations	83
Diversity
Composition of executive management	7 men, 1 woman
Number of employees participating in aboriginal cross-cultural awareness courses	58
Number of Aboriginal work experience terms	2
Training And Development
Dollars spent on technical and personal development training	$3,900,000
Number of employees registered in personal development programs	595
Number of employees receiving support through educational assistance program	67
Number of employees using fitness subsidy	625
Ethical Business Conduct
Number of certificates of compliance received pursuant to Policy on Business Conduct and Ethics	3,179
Potential Exceptions to PBCE	16
Number of employees and contractors who completed Ethics Awareness Training	2,484
Community Relations
Number of public open house consultations in North America	29

Health, Safety & Environment
energy
Direct energy use	21,141,000 gigajoules
Production energy intensity	0.210 gigajoules/boe
Emissions
CO2E equilvalent emissions	2,479,000 tonnes
Production Carbon Intensity	0.025 tonnes CO2E emissions/boe
Water
Licensed fresh water diversion	1,119,000 cubic meters
Waste Management And Site Restoration
Waste recycled - UK	36 %
Waste intensity - UK	78.8 tonnes/mmboe
Oil content of produced water discharged to sea - UK	25.0 mg/L
Reclamation and Remediation Expenditures - Canada	$19,000,000
Well abandonment - Canada	92
Total amount of soil treated and recycled at Diamond Valley Soil Treatment Facility	11,560 tonnes
Land Use
Total amount of land owned, leased or managed(thousand acres)	21,144
Major Incidents
Major incidents of non-compliance	0
Spills
Spill Frequency - Canada	3.35 spills/mmboe
Average spill size - Canada	3.5 cubic metres
Occupational Health & Safety
Lost time injury frequency - Global	0.69
Fatalities, life-threatening occupational injuries - Global	0

Economic
Gross sales	9,554
Net income	1,561
Earnings from operations	2,058
Shares outstanding (millions) at December 31, 2005	366
Annual dividend on common shares	125
Total assets	18,339
Long-term debt
Oil production (mboe/d)	250
Gas production (mmcf/d)	1,319
Total net production (mboe/d)	470
Exploration and development spending	3,179
Year-end proved reserves (mmboe)	1,639
Employee remuneration	408
Total taxes and royalties paid to host governments	2,615
Amount of money paid to political parties in Canada	$34,600
Total global community contributions	5.5
All financial data should be read in conjunction with the audited financial statements of the Company contained in the 2005 Annual Report Financial Review.
1 Unaudited, year-ended December 31, 2005, millions of Canadian dollars unless otherwise stated.

THE GLOBAL REPORTING INITIATIVE This Report was prepared in accordance with the Global Reporting Initiative (GRI)'s 2002 Sustainability Reporting Guidelines. While this Report endeavours to address many of the GRI's key performance indicators, it is a summary of progress against priorities we set ourselves. Visit www.globalreporting.org for more about the GRI. Refer to pages 39-41 for a more complete list of Talisman's Key Performance Indicators.