Talisman Announces Blake Field Development Approval.

Business Editors and Oil/Gas Writers

CALGARY, Alberta--(BUSINESS WIRE)--Jan. 13, 2000

Talisman Energy Inc.(TSE:TLM.) (NYSE:TLM) (ME:TLM.) Talisman Energy UK (53.6%), BG International (44%) and Paladin Resources (2.4%) have received government approval for the development of the Blake oil field in the outer Moray Firth, at an anticipated cost of C$400 million.

Blake will be a sub-sea development, tied back to the Talisman operated Ross field, which uses the Bleo Holm FPSO.

The main Blake reservoir, a thick channel sand, is estimated to contain recoverable reserves of 50-75 mmbbls of light oil. The feasibility of developing additional volumes outside the main channel area will be assessed in future phases. Oil production will start in August 2001, less than 20 months after sanction, and will peak at 40,000 bbls/d. Field life is estimated at 14 years.

Dr. Jim W. Buckee, President and Chief Executive Officer said, "I am delighted that Blake development approval using the Ross facilities has proceeded quickly. Talisman's high working interests in Ross and Blake has facilitated progress and generated tremendous value for all stakeholders in both fields. In addition to the volume generated at Blake, the Ross participants will see extended field life, increased reserves and lower operating costs. We see these attributes of simplifying ownership and joint development as being the way forward in North Sea."

The first of eight wells will begin drilling in April 2000, with installation of subsea facilities planned for early 2001. The hydrocarbons produced from the Blake field will be transported via flowlines to a subsea production manifold for onward transportation to the Bleo Holm via 10 and 12-inch production lines. On the FPSO, the Blake fluids will be processed with those from the Ross field.

The produced oil, gas and water will be separated on the Bleo Holm and the oil temporarily stored onboard prior to export by shuttle tanker. The surplus gas will be exported via the existing Ross tie in to the 24-inch Frigg UK pipeline to the St. Fergus gas terminal.

Talisman Energy Inc. is the largest independent Canadian oil and gas producer. The Company has operations in Canada, the North Sea, Indonesia and Sudan. Talisman is also conducting exploration in Algeria and Trinidad. Talisman'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.

Notes to editors:

The Blake discovery well, 13/24b-3, was drilled by BG International in March 1997, and tested sweet 32 degree API oil at a maximum flow rate in excess of 2,600 bbls/d on a 40/64 inch choke. It was the first well to be drilled by BG on Block 13/24b, which was awarded in the 14th UK licensing round in 1993.

Three other appraisal wells in Block 13/24 were drilled in 1998, one of which was tested at 4,000 bbls/d. The 13/29b-6 well drilled in 1999 was tested at 3,950 bbls/d and confirmed the extent of the field to the south.

FORWARD-LOOKING STATEMENTS

Statements in this press release may contain forward-looking statements including expectations of future production and capital expenditures. Information concerning reserves may also be deemed to be forward-looking statements as such estimates involve the implied assessment that the resources described can be profitably produced in future. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the background risks of the oil and gas industry (e.g., operational risks in development, exploration and production; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), risks in conducting foreign operations (e.g. political and fiscal instability), price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional information on these and other factors which could affect Talisman's operation or financial results are included in Talisman's Annual Report under the headings "Management's Discussion and Analysis Sensitivities," "Risks and Uncertainties," and "-Outlook," and in Talisman's other reports on file with Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.

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