Talisman-Foothills Drilling Success Continues Gas Production Up 88%.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--Jan. 26, 2000

Talisman (TSE:TLM.) (ME:TLM.) (NYSE:TLM) Talisman Energy Inc. announced today that gas production from its Alberta Foothills properties increased by 88% in 1999. The Company also announced eight successful gas wells in the Alberta Foothills during the fourth quarter and a significant new gas discovery at Monkman in the British Columbia Foothills.

In 1999 Talisman spent $67 million and drilled 13 successful wells (100% success rate) in the Alberta Foothills. Production averaged 67 mmcf/d. Capital spending in 2000 will be $112 million, with participation in 22 wells. Production targets are 78 mmcf/d in 2000 and 110 mmcf/d for 2001.

Talisman's Canadian gas production during the fourth quarter averaged 773 mmcf/d, an increase of 14% from fourth quarter 1998. The Company will spend a record $525 million on Canadian exploration and development in 2000 (up 60% from last year) participating in 530 wells. Approximately 80% of the capital program is directed at natural gas opportunities. Domestic gas production will increase approximately 20%, to average 816 mmcf/d in 2000.

&uot;Foothills gas has become a major part of our Canadian strategy,&uot; said Dr. Jim Buckee, President and Chief Executive Officer. &uot;Much of the remaining gas potential in the Western Canadian Basin will be found in the deeper, technically challenging, higher cost plays. Talisman has emerged as one of the industry leaders in terms of the number of deep wells drilled, success rates and pacesetting drilling costs.&uot;

ALBERTA FOOTHILLS

Talisman participated in a record eight horizontal wells in the Mississippian Turner Valley formation (seven new drills and one re-entry) in the Northern Alberta Foothills during the fourth quarter of 1999, with a 100% success rate. Six of these wells have been tested, all at initial rates in excess of 14 mmcf/d. The remaining two wells have not finished testing. The six wells will add an estimated 27 mmcf/d of initial net production capability to Talisman's Foothills production base.

     Individual well test results are summarized below:

Well                         Working Interest %      Test Rate
                                                      (mmcf/d)

TLM et al Stolberg Hz 7-23             77.8             14.5
Suncor et al Brown Creek 14-26         47.8             18.6
TLM  et al Cordel  5-30                40.0             15.5
TLM  et al Hz Bighorn 3-27             38.3             14.1
PC et al Basing 4-19                   20.0             26.0
Suncor et al Stolberg 6-3              20.0             20.1

Five of these wells will be tied in to existing pipeline infrastructure and should be on stream before the end of the first quarter 2000. A further five wells are currently drilling with an additional five wells expected to spud before the end of the first quarter.

Note to Editors: A map showing the location of these Foothills wells can be found on the Talisman website under press releases.

MONKMAN

Talisman Poco Highhat c-42-K/93-P-5 (TLM 50%) encountered over 200 metres of net pay in the Triassic Pardonet/Baldonnel formation. The well tested at a rate of 20 mmcf/d. Upon completion of pressure testing, the well is expected to be tied in by the end of the second quarter, 2000.

Talisman's current production in the prolific Monkman area of NE British Columbia is over 110 mmcf/d, with annual expenditures of approximately $20 million. Gas production is processed through the Westcoast facilities at Pine River.

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.

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 &uot;Management's Discussion and Analysis Sensitivities,&uot; &uot;Risks and Uncertainties,&uot; and &uot;-Outlook,&uot; and in Talisman's other reports on file with Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.

TALISMAN ALBERTA FOOTHILLS BACKGROUND

The Canadian Basin is a slightly gassier, less mature version of the lower 48, particularly at depths of 10,000 feet or deeper, where there is significant remaining gas potential. Most of this deep gas will be found along the western fairway in the under-explored, deep foothills areas of British Columbia, Alberta and Montana. Prospect sizes can reach 200 bcf or more.

The Alberta Foothills is a very prospective area, with large pool sizes, low-porosity reservoirs, and high quality natural gas; however, drilling is expensive. Talisman gained experience in this thrust fold belt style of play in the mid-late 1980s with our success at Monkman. Over the past five years, Talisman has emerged as a leader in the Alberta Foothills in terms of both exploration success and as a low-cost driller of vertical and horizontal wells. The Alberta Foothills is Talisman's fastest growing area in Canada.

Alberta Foothills             1996      1997      1998      1999

Capital Spending $MM           17        34        76        67
Gas Wells                       2        11        11        13
Success Rate %                100        91       100       100
Production (mmcf/d)             8        18        36        67

The reservoirs in the Foothills are prolific. A single &uot;sheet&uot; in the Turner Valley formation can hold upwards of 300 bcf of gas in place. Each successful well can access 20-30 bcf, or 50 times the size of the average North American gas discovery. At 12,000 feet and $5-6 million per well, the competition is limited to the larger players. Our goal in the Alberta Foothills is to increase our current production level by 64% to average 110 mmcf/d in 2001, up from 67 mmcf/d in 1999.

In conjunction with increased drilling activity in the Alberta Foothills, Talisman has also participated in a number of key infrastructure projects which will provide access to the Hanlan Robb and Ram River gas plants. These projects include major pipelines in the Lovett River, Voyager, Brown Creek, Redcap, Mountain Park and Stolberg/Ram River areas and facility upgrades throughout the system.

Infrastructure projects in 2000 include an expansion of the Talisman-operated dehydration facilities at Cordel and participation in pipeline projects in the Shaw Basing, Redcap and Brown Creek/Blackstone areas.

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