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TALISMAN ENERGY REPORTS NET INCOME AND FUNDS FLOW INCREASES

 CALGARY, Alberta, Aug. 3 /PRNewswire/ -- Talisman Energy Inc. has recorded a dramatic increase in both profits and funds flow.
 The second quarter net income of $7 million ($.12 per share) is approximately double the $3.5 million ($.07 per share) realized in the second quarter of 1992. This brought year-to-date profit to $14.9 million ($.28 per share), up 174 percent from the $5.4 million ($.11 per share) earned during the first half of 1992.
 Funds provided by operating activities in the quarter were $39.9 million ($.71 per share) up 93 percent from $20.6 million ($.41 per share) in the second quarter of 1992. This increased year-to- date funds flow to $71.9 million ($1.35 per share), 75 percent higher than the $41.2 million ($.82 per share) for the first half of 1992.
 Natural gas volumes increased 30 percent to 48,546 billion cubic feet in the first half of 1993 from 37,303 billion cubic feet in the same period of 1992. Encor, which is included for 40 days, contributed 6,009 billion cubic feet to the Talisman numbers and increased the year- to-date production 14 percent.
 Natural gas production grew in the Monkman, British Columbia, and Peace River Arch, Alberta, areas and, because of an increased working interest, in Medicine Lodge, Alberta.
 The company's natural gas prices for the year to date averaged $1.60 per thousand cubic feet, up from $1.35 for the corresponding period in 1992.
 Crude oil and natural gas liquids production rose 20 percent to 3.6 million barrels in the first half of 1993 from 3.0 million barrels in the first half of 1992. In the same periods, oil volumes were up 21 per cent to 3.0 million barrels from 2.4 million barrels. Liquids production acquired from Encor increased the year-to-date figure by 23.8 percent, offsetting an approximate 2 percent natural decline in production.
 Talisman's crude oil and natural gas liquids prices averaged $18.14 per barrel in the first half, up from $16.48 in the same period last year.
 Talisman's operating costs for the year were down $3 million prior to the acquisition of Encor. The acquisition increased operating costs $9 million, resulting in an overall year-to-date increase of $6 million in operating costs.
 Pre-acquisition general and administrative costs were $1.4 million below 1992 levels. The acquisition added $2.1 million to general and administrative costs and therefore, the year-to-date figure is $0.7 million higher than that of the first half of 1992.
 Capital spending for the six months was $83.2 million, up from $22.3 in the first half of 1992. Current year expenditures include $12.4 million to acquire an increased working interest in Medicine Lodge and $21.2 million for the Cuban operations of Talisman's subsidiary, Fortuna Petroleum Inc. These expenditures were financed from internally generated funds.
 "Talisman financed the acquisition of Encor by issuing common shares and assumed Encor's debt obligations," said Wayne Bobye, vice-president and chief financial officer. "The company's financial position remains strong. With the Encor acquisition, Talisman is exhibiting marked funds flow growth and an excellent balance sheet," said Bobye.
 TALISMAN ENERGY INC.
 Financial and Operational Highlights
 (Millions of dollars unless otherwise stated)
 Three months ended Six months ended
 June 30, June 30,
 1993 1992 1993 1992
 (restated) (restated)
 Financial
 Net income 7.0 3.5 14.9 5.4
 Funds provided by
 operating activities 39.9 20.6 71.9 41.2
 Capital and exploration
 expenditures 37.3 9.8 83.2 22.3
 Per common share (dollars)
 Net income 0.12 0.07 0.28 0.11
 Funds provided by operating
 activities 0.71 0.41 1.35 0.82
 Operational (Gross Volumes)
 Daily average production
 (barrels per day, except as
 noted)
 Crude oil 27,240 13,406 27,516 13,447
 Natural gas liquids 5,986 2,454 5,697 2,915
 Crude oil and natural
 gas liquids 33,227 15,860 33,213 16,362
 Synthetic oil 2,611 --- 2,611 ---
 Natural gas (millions
 cubic feet per day) 383 197 385 205
 Year-to-date production
 (thousands of barrels,
 except as noted)
 Crude oil 1,739 1,220 2,971 2,447
 Natural gas liquids 390 224 612 531
 Crude oil and natural
 gas liquids 2,129 1,444 3,583 2,978
 Synthetic oil 104 --- 104 ---
 Natural gas (billions
 of cubic feet) 26,976 17,887 48,546 37,303
 Average unit prices
 ($Cdn per barrel, except
 as noted)
 Crude oil 18.91 19.44 18.60 17.55
 Natural gas liquids 16.00 13.44 15.88 11.49
 Crude oil and natural
 gas liquids 18.38 18.51 18.14 16.48
 Synthetic oil 22.26 --- 22.26 ---
 Natural gas ($Cdn per
 thousand cubic feet) 1.59 1.26 1.60 1.35
 Daily average production for 1993 has been determined as follows: Total production volumes, excluding those acquired from Encor, for the period divided by the number of days in the period; plus production volumes acquired from Encor divided by the number of days from the acquisition date to the period end.
 TALISMAN ENERGY INC.
 Consolidated Statements of Income
 (Millions of dollars)
 Three months ended Six months ended
 June 30, June 30,
 1993 1992 1993 1992
 (restated) (restated)
 Revenue
 Crude oil and natural gas $89.1 $52.5 $151.8 $106.1
 Royalties 13.3 9.0 24.4 16.4
 Net sales 75.8 43.5 127.4 89.7
 Investment income 0.4 1.1 0.9 3.4
 Total revenue 76.2 44.6 128.3 93.1
 Expenses
 Operating 23.5 14.5 36.7 30.7
 General and administrative 9.4 5.9 14.8 14.2
 Depreciation, depletion
 and amortization 20.2 12.3 34.1 25.8
 Dry hole costs 3.5 0.9 4.8 2.6
 Exploration 7.3 1.9 12.3 4.5
 Interest on long-term debt 2.6 3.6 2.6 7.7
 Other (1.1) 0.1 (0.2) (1.0)
 Total expenses 65.4 39.2 105.1 84.5
 Income before income taxes 10.8 5.4 23.2 8.6
 Income taxes (recovery)
 Current (0.1) (0.3) (0.3) (0.5)
 Deferred 3.9 2.2 8.6 3.7
 Total 3.8 1.9 8.3 3.2
 Net income $7.0 $3.5 $14.9 $5.4
 Certain adjustments have been made to quarterly results reported in 1992. There is no effect on annual amounts for 1992.
 The 1992 figures reflect reclassifications to conform to the presentation adopted in 1993.
 -0- 8/3/93
 /CONTACT: Ruth Ann Yardley, manager, public affairs, 403-237-1362; or Wayne Bobye, VP-finance and CFO, 403-237-1363, both of Talisman Energy/
 (TLM. TLM.R.)


CO: Talisman Energy Inc. ST: Alberta IN: OIL SU: ERN

BP-MF -- LA026 -- 9037 08/03/93 16:10 EDT
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Date:Aug 3, 1993
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