Talisman Encouraged by Alaska Drilling

Talisman Energy Inc. said that its subsidiary company, FEX L.P., has completed a three well drilling program in the northwest planning area of the National Petroleum Reserve in Alaska.

One well was plugged and abandoned and two were suspended. All wells encountered hydrocarbon-bearing sandstones in several formations based on log analysis and strong gas and oil shows, including oil staining and free oil in the drilling mud in one of the wells. FEX L.P. has a working interest of 60-80% with Petro-Canada (Alaska) Inc., as a participant in all three wells, holding the remaining interest.

"I am very encouraged by the results of our winter drilling program in Alaska, although disappointed that we did not have time to test the wells," said Dr. Jim Buckee, President and CEO. "The presence of black oil on the shakers is very positive as it confirms the presence of mobile oil as opposed to gas."

All of the wells encountered oil and gas-bearing sandstones in several formations. One well was plugged and abandoned although it encountered hydrocarbon-bearing sandstones. It was believed the well would be subcommercial given current infrastructure. Recently acquired high-fold seismic will assist in analyzing this well. The other two wells encountered over 225 feet of net hydrocarbon bearing sandstones and plans are to evaluate them next season. The initial estimate of contingent resources present in these formations is 300 to 400 million barrels, net to Talisman. In addition, there is significant follow up potential on many similar structures on Talisman's acreage if commercial productivity is proven.

A shortened winter drilling season due to the delay in tundra opening, and the need to demobilize equipment before the tundra started thawing, precluded flow testing this year. Formation evaluation will continue when longer-term test equipment is mobilized to the field area. This remote operation utilized the Doyon Akita Arctic Wolf drilling rig and the Nabors 14E drilling rig, working at drill sites located about 60 miles (96 km) southeast of Barrow. All equipment has been demobilized to the Cape Simpson Industrial Port operated by Ukpeagvik Inupiat Corporation.

Talisman Energy Inc. is an independent upstream oil and gas company headquartered in Calgary, Alberta, Canada. Talisman has operations in Canada and its subsidiaries operate in the North Sea, Southeast Asia, Australia, North Africa, the United States and Trinidad and Tobago. Talisman's subsidiaries are also active in a number of other international areas.