Talisman Starts Production at Two Appalachia Wells

Appalachian Basin
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Talisman's subsidiary, Fortuna Energy, has started production from a prolific gas well and recently tested high rates from a second well in the Appalachian Basin of New York State. Initial production from the two wells combined is expected to be approximately 30 mmcf/d (gross sales gas).

The Hulett K 1 well was drilled vertically, then steered horizontally across a newly defined graben structure within the Upper Black River formation. Fortuna has a 68.306 % interest in this well and is the operator. The well is currently flowing at 15 mmcf/d (gross sales gas) with a flowing pressure of 2800 psi.

The second well, Dzybon A 1 was recently tested at rates of 6 mmcf/d with a flowing pressure of 2800 psi and initial production from this well is also expected to be in the range of 15 mmcf/d (gross sales gas). The Dzybon A 1 well was also drilled horizontally in the Upper Black River formation and, based on measured pressures, has encountered a new graben structure. Fortuna has a 98.455% interest and is the operator. Pipeline construction is expected to commence after all regulatory approvals are obtained, with production planned for the second quarter of 2007.

Fortuna Energy Inc. has an active exploration and development program planned for 2007 with a budget of US$120 million and the Company plans to drill or participate in 25 Trenton Black River wells. Fortuna is currently producing 112 mmcf/d.


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