Talisman Makes Discovery in the Foothills of British Columbia

Talisman Energy Canada has announced a significant natural gas discovery in the foothills of British Columbia. This is the first commercial well to produce from the deeper, under-explored Paleozoic reservoirs in the Monkman area.

Talisman and its partners drilled the West Sukunka b-79-J/93-P-4 well to a total measured depth of 4,801 meters in the Mississippian and encountered large volumes of low acid gas (6%) in reservoirs of Permian and Pennsylvanian age.

The well tested at rates ranging from 15 mmcf/d to 37 mmcf/d with a flowing tubing pressure of 2,364 pounds per square inch directly into existing Monkman pipeline infrastructure. The well is expected to be on production by September 2002. A delineation well is planned for the fourth quarter of 2002 with additional locations planned in 2003.

"This is the most exciting discovery in the Monkman area for some time," said Dr. Jim Buckee, President and Chief Executive Officer. "This opens up a major potential new play system which will be easy to tie in since it is under our existing infrastructure. Although an extensive exploration program will be required, we believe currently identified locations could contain more than 1 tcf of unrisked reserves."

At the July 17, 2002 B.C. crown land sale, Talisman and its partners purchased 7,383 hectares (18,236 acres) of land on trend with the b-79-J discovery well for $12 million. Additionally, Talisman holds a 95% working interest in 12,980 hectares (32,061 acres) of deep rights on two large blocks of land along trend to the northwest. The Company's partners have the option to farm in on this acreage to further develop the trend.

Talisman has worked the overlying Triassic play at Monkman since the 1950s, with the Company's production currently exceeding 90 mmcf/d. Deeper Permian-Mississippian targets have been sporadically pursued by industry in more recent years, culminating with a Permian gas discovery in the Ojay area southeast of Monkman in 1998.

As a result of Talisman's Triassic exploration and production activities, the Company and its partners have immediate access to significant landholdings close to existing infrastructure as well as extensive seismic data, which will allow follow-up drilling to proceed quickly.

Talisman is operator of the well with a 40% stake with its partners Anadarko Canada Corporation holding 30%, National Fuel Exploration Corp. with 20% and Oiltec Resources Ltd. with the remaining 10%.