Talisman Commissions Lynx Pipeline

Talisman Energy has finished commissioning on the Lynx Natural gas pipeline and says that the completion of the Lynx pipeline opens up a large geographic area, approximately 20 townships, for gas exploration. Talisman has built an extensive land position along the pipeline corridor, identifying 50 prospects and leads in the vicinity and the new facilities provide a path to market. The total cost of the pipeline system was $97.5 million. Industry pressures and wet weather caused a delay from an earlier anticipated startup date of April.

"The Lynx pipeline opens up a very prospective natural gas exploration area for Talisman," said Dr. Jim Buckee, President and Chief Executive Officer. "Although the main purpose is to use Talisman's midstream operations to provide strategic support for our natural gas exploration and development activities, we have developed this business into a valuable asset in its own right. We have increased total volumes (Talisman and third party raw gas) through our facilities from 155 mmcf/d in 2002, to over 400 mmcf/d last year and expect to reach 600 mmcf/d by the end of this year."

The Lynx project consists of a 12 inch diameter, 72 kilometer sour gas pipeline and a four inch diameter, 72 kilometer fuel gas line from the existing Findley dehydration facility to the new Lynx dehydration facility. The Lynx pipeline (Talisman 45%) has a nominal capacity of 130 mmcf/d of raw gas, with throughput expected to be 40 mmcf/d by the end of June. Talisman is also currently installing additional pipeline facilities in the Palliser area, which are expected to be complete in September.

Across its North American operations the Company has approximately 100 mmcf/d of sales gas shut-in or awaiting completion of infrastructure. The Lynx pipeline and Palliser pipeline are expected to bring an additional 20 mmcf/d of shut-in gas to market by September. Talisman expects its North American natural gas production to average about 880 mmcf/d in the second quarter, increasing to over 930 mmcf/d in the third quarter and over 940 mmcf/d in the fourth quarter, despite the loss of approximately 20 mmcf/d in the second half of the year associated with non-core asset sales.