Talisman Energy Plans Major New Gas Development

Talisman Energy has announced a major new natural gas play. Over the past year, the Company has acquired a significant land position in the Western Canadian Basin along the "Outer Foothills" trend of the Rocky Mountains. The acreage lies in a relatively undeveloped part of the basin, east of and running parallel to Talisman's existing Foothills play in both Alberta and British Columbia.

Talisman acquired the land through both Crown land sales and third party deals, spending approximately $230 million to acquire over 260,000 acres (410 sections) of land along trend, most of which is 100% Talisman working interest.

"This is an exciting development as Talisman continues to find new sources of relatively low cost conventional natural gas in North America," said Dr. Jim Buckee, President and Chief Executive Officer. "We are hoping this will be a significant growth area for us, building on our expertise in structural play systems and developing infrastructure in growth areas. Examples of Talisman's success in developing new core gas plays include the Monkman deep play, expansion into the northern Alberta Foothills and development of the Trenton Black River play in Appalachia."

This extensive land position provides Talisman with numerous multi-zone opportunities, in several distinct regions. The Company has identified over 100 drilling locations to date and estimates prospective natural gas resources of between 1-2 tcf on the acquired acreage. Production from this area could total 200 mmcf/d net to Talisman by the end of the decade and the Company will continue to look for additional opportunities on trend.

Talisman expects to spend approximately $250 million in the Outer Foothills area in 2007, drilling 30 or more wells. The Company has secured the rigs required to carry out these activities. Four wells have been drilled to date in 2006, three are currently being tested, the fourth will be tested this winter. The first well, Chinook 16-14-65-13W6M, has tested approximately 6 mmcf/d of raw gas during preliminary testing (up casing) from three intervals within the Nikanassin Formation. The well is expected to be tied in by end of September, following testing of an additional two intervals. Three wells are drilling and an additional six wells are planned for the remainder of 2006.

Average recovery per well is expected to be in the 6-10 bcf range, although some wells along trend have produced over 25 bcf. Reservoir deliverability is enhanced by fracturing associated with the thrust and fold structures. Initial deliverability is expected to be in the range of 6-10 mmcf/d of sales gas per successful well.