Talisman Announces North Sea Discovery

Talisman Energy (UK) Limited, a wholly owned subsidiary of Talisman Energy Inc., has made a significant new oil discovery in the UK Central North Sea adjacent to the Talisman operated Piper field.

The "Lucy" exploration prospect, located eight kilometers to the northeast of the Piper Bravo platform, was successfully drilled by Diamond Offshore's semisubmersible, Ocean Princess. Preliminary estimates of reserves in the "Lucy" field are in the range of 20-50 mmbbls.

"This is a very pleasing result from Talisman's first exploration well in our new Flotta Catchment Area and we believe there is much more oil to be found here," said Dr. Jim Buckee, President and Chief Executive Officer. "Although the size is still uncertain, the "Lucy" exploration well is clearly a commercial discovery. With additional seismic underway, we would hope to justify stepout drilling. This is a strong beginning to our UKCS program, where we plan to drill nine exploration and 46 development wells in the North Sea this year."

The well discovered a 68-ft column of light oil in excellent quality Jurassic Piper sandstones. The oil-bearing sands had porosities in the range of 18-25% with very high permeability. The excellent reservoir quality, together with an extensive sampling program, resulted in it being unnecessary to test the well. By analogy with the nearby Piper field, it is thought that the "Lucy" well would have been able to flow at rates in excess of 15,000 bbls/d.

New, high quality 3-D seismic data will be available by year end as part of the major survey that Talisman is acquiring over the entire Flotta Catchment Area and further evaluation and development studies will now take place. Development plans should be finalized later this year with first production from "Lucy" potentially in late 2002. It is anticipated that the discovery will be developed using one or two horizontal wells and produced across the nearby Talisman operated Piper Platform, subject to DTI approval.

Talisman holds a 76.7% interest in the 15/12b license block, which contains the discovery well, and 60.4% in the adjacent 15/17 license block, into which the discovery extends. LASMO-Eni (20% in each license) and Intrepid Energy (3.3% in 15/12b; 19.6% in 15/17) hold the remaining interests.