Talisman and BHP Hit with Canteen-1

Talisman Energy Inc. announced another oil and gas discovery with its fourth exploration well in the Block 2(c) Production Sharing Contract offshore Trinidad.

The Canteen-1 exploration well began drilling on October 23, 2001, with the jackup rig Glomar Labrador I. The well is located in a water depth of 164 feet, approximately one mile north of the previously announced oil and gas discovery at Kairi-1.

Drilled to a total depth of 7,070 feet, Canteen-1 encountered a gross hydrocarbon column of approximately 700 feet, with 437 feet of gross oil pay (200 net) and 270 feet of gross gas pay (179 net). The well tested at a stabilized rate of approximately 3,700 bbls/d from a 60 foot interval through a 1-1/8 inch choke. Log data from the well indicates a high quality reservoir formation similar to that found in the Kairi-1 well, which tested at 3,000 bbls/d from a limited interval.

"Although we are still in the very early stages of drilling and appraisal, it is safe to say we have made a major oil discovery offshore Trinidad, with potential in the multi-hundred million barrel range." said Dr. Jim Buckee, President and Chief Executive Officer. "An appraisal drilling program will begin immediately to assess the extent of the Company's discoveries in Trinidad and to determine more accurately reserve levels and development planning options."

Talisman (Trinidad) Ltd. holds a 25% working interest in Block 2(c), BHP Billiton holds a 45% interest and is the designated operator, and Elf Petroleum Trinidad B.V. holds a 30% interest. Talisman also is involved in the negotiation of a Production Sharing Contract for exploration of Block 3(a), which is adjacent to the Company's discoveries in Block 2(c).