Talisman - New Lease on Life for Beatrice Field in the North Sea.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--March 9, 2001

Talisman (NYSE:TLM)(TSE:TLM.)

Talisman Energy (UK) Limited, a wholly owned subsidiary of Talisman Energy Inc., confirmed that, subject to Government approval, it will invest up to $70 million in redeveloping the Beatrice field in Block 11/30a in the inner Moray Firth.

Talisman is operator with a 100% working interest in the field.

The announcement was made at the opening of the Company's new headquarters in Aberdeen, at which UK Trade and Industry Secretary, Stephen Byers, was guest of honour.

Talisman President and Chief Executive Officer Jim Buckee said the redevelopment had only been made possible by the UK Government's agreement to grant royalty remission on the field, believed to be the first granted in the UK. "Beatrice is an old field and our investment would not have been financially viable had we not received practical cooperation from the DTI and Treasury regarding this relief.

"The Beatrice Life Extension Project will add another 5-10 years onto the projected life of the field. This will mean additional revenues for the UK as well as Talisman and the royalty arrangement is therefore clearly in both our interests.

"Talisman has a proven track record of investing in areas where major operators have not. This development underlines that philosophy and reaffirms our commitment to the UKCS, where we will invest a record $565 million in exploration and development spending this year."

The main feature of the investment program will see Talisman lay 60 kilometres of pipeline to replace much of the old pipeline. The pipeline replacement forms part of an overall redevelopment program, which will significantly extend the life of the Beatrice field. This involves refurbishing the Bravo platform and drilling two wells to access undrained areas of trapped oil using a jack-up rig cantilevered over the Bravo platform.

In addition, a workover will be carried out on Bravo, water injection will be increased and dual ESPs (electrical submersible pumps) will be installed in all future completions. Beatrice will have a peak production rate of around 15,000 bbls/d and an annual average of 10,000 bbls/d. Pipelay will commence in April of this year with production expected to start in July.

The overall redevelopment program will secure employment for more than 60 people offshore and at Nigg for a number of years. In the short term, the program could generate around 650 project jobs.

Talisman Energy Inc. is the largest independent Canadian oil and gas producer with operations in Canada, the North Sea, Indonesia and Sudan. Talisman is also conducting exploration in the United States, Algeria, Trinidad and Colombia. Talisman has adopted the International Code of Ethics for Canadian Business and is committed to maintaining high standards of excellence in corporate citizenship and social responsibility wherever it does business. The Company's shares are listed on The Toronto Stock Exchange in Canada and the New York Stock Exchange in the United States under the symbol TLM.

This press release contains "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995, including business plans for drilling and exploration, the estimated amounts and timing of capital expenditures, the assumptions upon which estimates are based and other expectations, beliefs, plans, objectives, assumptions or statements about future events or performance (often, but not always, using words such as "expects", "anticipates", "plans", "estimates", or "intends", or stating that certain actions, events or results "may", or "will" be taken, occur or be achieved). Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those, reflected in the statements. These risks include, but are not limited to: the risks of the oil and gas industry (for example, operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to future production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; and health, safety and environmental risks); uncertainties as to the availability and cost of financing; fluctuations in oil and gas prices and foreign currency exchange rates; and the possibility that government policies may change or governmental approvals may be delayed or withheld. Additional information on these and other factors which could affect the Company's operations or financial results are included in the Company's other reports on file with Canadian securities regulatory authorities and the United States Securities and Exchange Commission. Forward-looking statements are based on the estimates and opinions of the Company's management at the time the statements are made. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

This release is available on Talisman's Internet Web Site: WWW.TALISMAN-ENERGY.COM