Talisman To Explore Block 10 Offshore Qatar

Talisman Energy has signed an Exploration and Production Sharing Agreement with the Government of the State of Qatar covering offshore Block 10 in Qatar. The signed agreement now awaits ratification by official decree of the Emir of Qatar, His Excellency Sheikh Hamad bin Khalifa al-Thani, which Talisman expects will occur within the next 30-60 days.

Block 10 was made available in a formal competitive bidding round held by the state oil company, Qatar Petroleum, in 2001. The block is located offshore in shallow waters some 100 kilometers northeast of Doha, the capital of Qatar, and covers an area of 784,000 acres. The block is situated between the Al Khalij oil field to the east and the Al Shaheen oil and North gas fields to the west.

"This is a high potential oil exploration play situated in the midst of major oil and gas discoveries," said Dr. Jim Buckee, President and Chief Executive Officer. "Qatar is entering its second phase of exploration, using modern seismic techniques to locate subtle traps. There is potential for discoveries in the 100-300 mmbbls range."

The first exploration term is for a period of five years during which time Talisman will conduct exploration activities including reprocessing existing 2D seismic data, acquisition of new 2D and 3D seismic data and drilling three wildcat wells.