Talisman's Indonesian Gas Sales Yield Increase in Production for Q1

Talisman Energy reported that in Southeast Asia, production averaged 89,262 boe/d, 5% lower than the same period last year and slightly above last quarter. Indonesian production averaged 52,888 boe/d, 15% higher than the same period last year, primarily due to increased West Java natural gas sales and 1% lower than the last quarter, primarily due to lower sales to Singapore. In Malaysia/Vietnam, production averaged 34,384 boe/d, lower than the same period last year mainly due to natural declines and 2% higher than the previous quarter when there was a planned production shutdown.

Production in Australia was 1,989 bbls/d, 74% lower than the same period last year primarily due to riser failures and natural declines and 23% higher than the last quarter with Corallina production being re-instated at restricted rates in March. Full production is expected in the fourth quarter.

In the PM-3 CAA Southern Fields, the Flash Gas Compressor on the Bunga Raya A platform has been fully commissioned and is currently adding 17 mmcf/d gross sales gas. In the Northern Fields, the Company expects to commence drilling gas wells in late April for the early gas startup currently scheduled to commence mid-2008. Four wells were drilled in the quarter, with results meeting or exceeding expectations in each case. In addition, facilities installation and pipe laying operations continued during the first quarter in preparation of first oil in the first quarter 2009.

In Indonesia, West Java gas take increased from 50 mmcf/d to an average of 80 mmcf/d gross sales gas. The Suban 10 and 11 wells flowed at a record combined rate of 311 mmcf/d gross sales gas in early February.

In Vietnam, the Song Doc development pre-drilling program was completed in early January with five production wells drilled and suspended. Installation of the jackets and topsides for the Song Doc-A platform were completed at the end of the first quarter. Phase 2 drilling operations will begin in late May with the tie back and completion of the five production wells and the drilling and completion of an additional three production and water injector wells and up to three appraisal wells. First oil is expected with the arrival of the FPSO towards the end of the third quarter of 2008.

The reserves assessment report for the Hai Su Trang development has been approved by the government of Vietnam as a precursor to development. An appraisal plan for the Hai Su Den discovery is being prepared for government approval.

The Hai Su Nau and Hai Su Bac exploration wells spud in the first quarter. The Hai Su Bac well has now reached target depth and encountered oil and gas, however the accumulation is believed to be small.

In Australia, the Kitan-1 exploration well was drilled and the new discovery flowed 6,100 bbls/d on drill stem test. A subsequent appraisal well was successfully drilled and subsequently suspended. This discovery is currently being evaluated for commercial development.