Talisman Energy to Develop Duart Field in the North Sea

Talisman Energy intends to develop the Duart field and redevelop the Galley field, both located in the UK sector of the North Sea.

Talisman is preparing to submit field development plans to the Department of Trade and Industry for the Duart field, which is located in block 14/20b, five miles to the west of the Tartan platform and 116 miles northeast of Aberdeen. Approximately 6 million barrels of prospective reserves are contained in the northern part of the field, which is the focus of the development. Talisman and Nexen Petroleum U.K. Limited each hold a 50% interest in the field, with Talisman as operator.

"This is another example of finding ways to quickly and economically develop a discovery, which has lain stranded for many years," said Dr. Jim Buckee, President and Chief Executive Officer. "Our knowledge and understanding of the surrounding fields give a technical advantage and confidence in our development plans."

The proposed development is a single subsea production well tied back via an eight inch production line and three inch gas lift line to Tartan. After processing on Tartan, liquids from Duart will be transported through the existing crude oil export system, boosting volumes arriving at the Flotta Terminal in Orkney. A development well is scheduled to be drilled in early 2007 with the tie-back and Tartan platform modifications completed for first oil in the fourth quarter of 2007.

It is anticipated the initial production rates from the field will exceed 6,000 bbls/d of oil from the single production well. The Duart production stream will increase utilization of the Tartan platform and Flotta export facilities and together with other planned tiebacks will contribute to extending the useful life of these facilities.

In another project scheduled for 2007, the Talisman operated Galley field, located in block 15/23a, is being redeveloped as a subsea tie-back to the Tartan platform. The Galley field currently produces via a Floating Production Facility. The redevelopment of the Galley field will significantly reduce operating expenditure per barrel, hence extending field life.

"This innovative approach will result in an additional 7 million barrels being recovered that would otherwise be left in the ground," said Dr. Jim Buckee.

Production from the Galley field will be temporarily suspended to allow subsea construction completion. Phased topside construction and commissioning on the Tartan platform is anticipated to result in the Galley field redevelopment first oil in fourth quarter of 2007. Initial production from the Galley field redevelopment, utilizing existing Galley production wells, is expected to be 2,500 barrels per day. Talisman holds a 67.416% interest in Galley and is operator of the field, with its partners Summit UK Oil Limited 17.416% and ENI UK Limited 15.168%.

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