Talisman Announces Natural Gas Production Record

Talisman announced that it has reached a new production record of 850 mmcf/d for natural gas in Canada. Natural gas production is expected to reach approximately 900 mmcf/d in the fourth quarter of this year. Talisman is currently employing 40 drilling and completion rigs in Canada, with the peak expected to reach 70 in the fourth quarter.

Ten successful wells have been drilled on Petromet lands since the April 10th acquisition announcement. The transition to Talisman has been very smooth and five rigs are in operation on Petromet properties, giving Talisman the capacity to drill 35 gross wells between June and December 2001. Talisman is planning to install compression at Wild River to provide the capability to overload an additional 40 mmcf/d of gas to the Talisman operated Central Alberta Foothills gathering system and surrounding plants.

Production in the Alberta Foothills core area continues to benefit from record activity levels. To date, eight of a planned 27 (gross) gas wells have been drilled, with a 100% success rate. Six new wells are producing 43 mmcf/d (gross), or 20 mmcf/d (net), and the remaining two wells are currently being tied in. Construction of the Chungo Pipeline, which will tie in seven gas wells, has commenced. Completion is anticipated in the fourth quarter of 2001, for an initial 17mmcf/d of gas on stream. Talisman has also drilled a successful well at Monkman with test results to be announced soon.

Exploration and development in the Northern Plains area continues to increase. A successful winter drilling program saw a success rate of 80% with four of five wells completed. Production increased by 3,000 boe/d, of which is 10 mmcf/d is natural gas. All locations have been tied in and put on production. Exploration and development drilling activity will be significantly increased for the upcoming 2002 winter season.

In the Greater Arch area, 37 gross wells have been drilled with an 81% success rate. Twenty-eight per cent of Talisman's Canadian natural gas production comes from this area. The current rate of 233 mmcf/d is a new record for the Arch.

In Chauvin, 37 of 147 wells have been drilled to date (100% success). At present, three drilling rigs are being utilized.

In Ontario, four wells have been drilled with a 100% success rate. Two offshore gas wells tested over 3.3 mmcf/d combined.