Talisman Expands Presence in Norwegian North Sea

Talisman Energy Norge AS, a wholly owned subsidiary of Talisman Energy Inc., has been awarded two new exploration licenses in the Norwegian North Sea. In addition, Talisman has acquired from ConocoPhillips Skandinavia AS ("ConocoPhillips") its 35% interest in licenses PL143BS and PL143CS in Block 1/2 on the Norwegian Continental Shelf, including the Blane discovery.

Talisman is continuing its successful North Sea strategy of using acquisitions and license applications to build exploration and development core areas around existing production and infrastructure, in this case the Talisman operated Gyda field. By focusing on near field exploration and maximizing production potential, small discoveries can make a significant contribution to cost sharing and field life extension.

The two licenses contain part of Blocks 2/1, 7/8 and 7/11 and were awarded to Talisman and its co-venturer DONG Norge AS (Talisman 60%, DONG 40%). Talisman will be the operator for both licenses. Block 2/1 contains exploration targets and is adjacent to the Gyda field and any discovery would likely be tied back to the Gyda platform as a subsea development.

Blocks 7/8 and 7/11 are about 70 kilometers northwest of Gyda. These blocks have several prospects and small discoveries including the Mime field. A technical evaluation program is planned to establish the remaining potential.

Block 1/2 acquired from ConocoPhillips contains the Hummer prospect, which the operator (Paladin Resources Norge AS) plans to drill in 2004. If this well is successful, the prospect could potentially be developed in conjunction with Blane via subsea tie back to Gyda.

The Gyda field has been in production since 1991 and the current daily production is circa 11,000 bbls/d (Talisman 61%). Plans have been made for drilling three new production wells in 2004 and a further three to six wells are expected to follow over the next two to four years.

"This is a major step forward for Talisman in Norway, particularly as we have only been operating there for a relatively short period," said Dr. Jim Buckee, President and Chief Executive Officer. "The Company's strategy for growth is based upon the success Talisman has had in other countries and we will continue to optimize returns on existing fields and facilities. In addition, we are very optimistic about exploiting the potential of the Norwegian Continental Shelf through new discoveries and by rejuvenating existing fields."