11 03 talisman colombia overview presentation web

Talismans history in Colombia

Entered Llanos Heavy oil belt with four large block awards

2008Huron discovery

2009First exploration block awarded in MagdalenaValley

2000Two blocks awarded in the Llanos Foothills

2001Expanded Llanos position with Foreland Blocks

Niscotablock awarded

Exited Magdalena Valley

Expanded Magdalena Valley position

2007200620052002

2010

BP Colombia acquisition

Three blocks awarded in Putumayo Basin

Akacias discovery

Block 6 Stratigraphic well success

Llanos Foreland farm-out

Talisman in Colombia landholdings

1748752007

ECP (53.7%)

PBR (27.4%)

19.9%Equin(40.6%)RC-4

(Offshore)

1336662007

ECP (53.7%)

PBR (27.4%)

19.9%Equin(40.6%)RC-5

(Offshore)

Equin

9351989ECP (75%)25%Equin(50%)Recetor A

40%

40%

50%

30%

45%

50%

50%

25%

25%

15%

25%

15%

30%

51%

30%

TLM

Llanos basin -

Foothills1434772001TOT (55%)ECP (15%)

MundoNuevo

1633202001ECP (49%)Tangara

461542006TOT (30%)ECP (20%)Niscota

481202010PRE (60%)CAG 6

4659302010PRE (50%)CAG 5

Putumayo basin

491232010PRE (60%)PUT 9

2137092008Cepsa(30%)PRE

(40%)CPO 12

2325152009ECP (55%)CPO 9

2,9565,9122008EPC (50%)TLM (50%)CPE 8

7521,5032008PRE (50%)CPE 6

Llanos basin

Heavy oil

271092007PTA (25%)CEP (50%)El Porton

271092007PTA (25%)CEP (50%)El EdenLlanos basin -

Foreland

181991ECP (66%) TOT (19%)Equin(31%)

Rio Chitamena

16641992ECP (75%)Equin(50%)Piedmonte

5351988ECP (66%) TOT (19%)Equin(31%)Cusiana

TLM Net Acres (000s)

Gross Acres (000s)

Award DatePartnersOperatorsBlock NameArea

TLM Colombia Landholdings

Block OperatorLlanos Foothills

Niscota EcopetrolTangara EcopetrolMundo Neuvo Ecopetrol

Llanos Light oil

El Eden CepsaEl Porton CepsaEquin Equin

Llanos Heavy Oil

CPE 6 Pacific RubialesCPE 8 TLMCPO 9 TLM > EcopetrolCPO 12 Pacific Rubiales

Putumayo Basin

CAG 5 Pacific RubialesCAG 6 Pacific RubialesPUT 9 Pacific Rubiales

Offshore

Equin Equin

12

3

9

45

6

10

7

8

1112

13

TLM blocksFarmoutblocksEquin blocks

123

456

789

10

111213

14

14

CaribbeanSea

March 2011 www.talisman-energy.com Page 1 of 19

Talisman Colombia - landholdings

Equin 4 development blocks 2 offshore blocks

Llanos basin Foothills 3 blocks Foreland 2 blocks Heavy oil 4 blocksPutumayo basin 3 blocks

Venezuela

Brazil

Ecuador

Peru

Colombia

Atlantic Ocean

PacificOcean

Llanos

Putumayo

Guajira

Mag

dale

na

Catatumbo

PacificCoast

SinuSan Jacinto

TLM blocksEquin blocksBasinRefineryOil pipelines

Foothills Trend Foreland Trend Heavy Oil Trend & Putumayo Basin

7 blocks, 0.3 million net acres 4 blocks, 0.1 million net acres 7 blocks, 4.7 million net acres

Llanos and Putumayo basins multiple play trend geology


Stratigraphy of Llanos and Putumayo basins

Basin geology and structure provides rich source, reservoir and trap (seal) conditions

Traps variety of simple to complex (Foothills) structural and stratigraphic

Rich interbedded source rocks generated large quantity of oil

High quality reservoirs mostly clastic (sandstone)

Colombia landscape

FoothillsFoothills

Llanos ForelandLlanos Foreland Block CPEBlock CPE--88

EquiEquinn


Talisman Colombia partners

Partnered with four of Colombias best producers and operators

Talismans position in Colombia

Foothills Equin Niscota Heavy oil trend CPO 9 CPE 6 CPO 12 CPE 8 Putumayo basin CAG 5 CAG 6 PUT 9

Venezuela

Brazil

Ecuador

Peru

Colombia

Atlantic Ocean

PacificOcean

Llanos

Putumayo

Guajira

Mag

dale

na

Catatumbo

PacificCoast

SinuSan Jacinto



Foothills: Equin Energia Limited

US$858 million spent to acquire 49% of BP Exploration (Colombia) Limited; Ecopetrol acquired remaining 51%

Equin, recently renamed company, continues to operate the assets

Provides 12,000 to 15,000 boe/d 2011 production (65% liquids) net to TLM

Existing exploration and development upside on blocks

Interest in strategic infrastructure and export oil pipeline (OCENSA)

Attractive acquisition metrics (Net to TLM) $12/boe 1P (47 mboe) $9/boe 2P (60 mboe)

TLM blocksFarmout blocksEquin blocksEcopetrol blockGas fieldsOil fieldsProspect/leadsOil/gas condensatediscoveriesGas pipelinesOil pipelines

Huron

FlorenaPautoSur

Cusiana

Piedemonte

Recetor A

RC-4

RC-5Caribbean

Sea

Foothills: Equin Energia Limited next steps

Potential synergies with adjacent exploration blocks

Piedemonte - expansion of base project

Offshore - drilling in 2012

OCENSA Pipeline Expansion to 560 mbbls/d 2011 Expansion to 660 mbbls/dexpected to be sanctioned in 2011/2012

TLM blocksFarmout blocksEquin blocksEcopetrol blockGas fieldsOil fieldsProspect/leadsOil/gas condensatediscoveriesGas pipelinesOil pipelines

Huron

FlorenaPautoSur

Cusiana

Piedemonte

Recetor A

RC-4

RC-5Caribbean

Sea


Foothills: Foothills: NiscotaNiscota block block -- HuronHuron--1 discovery1 discovery

4,900 bbls/dcondensate flow test, discovered 2009

Combined rate 3 zones

Light crude oil 42 API

On trend with Equin blocks

Niscota BlockNiscota 3D

Huron Discovery

Oil Field

Condensate / Gas Field

Prospect/Lead

40 km

Piedemonte

Cusiana

Recetor A

Equin blocks

Volcanera 1

Sur

HuronHuron--1 1 Niscota Niscota

20% Hocol (Ecopetrol), Operator30% Talisman50% Tepma/Total


Mirador Outcrop in Typical Thrust Fold

Scale:Scale:MIMI--1717

HelicopterHelicopter

NW SEHuron

Schematic structural cross section

Foothills structures

Foothills: Niscota block

Drill Huron-2 in 2011 and Huron-3 in 2012

Feasibility study to determine optimal development for Huron

Working with Equin to find options for processing early production in Piedemonte

Advancing with 3D seismic operations to further evaluate exploration potential


Foothills Equin Niscota Heavy oil trend CPO 9 CPE 6 CPO 12 CPE 8 Putumayo basin CAG 5 CAG 6 PUT 9

Talismans position in Colombia

Venezuela

Brazil

Ecuador

Peru

Colombia

Atlantic Ocean

PacificOcean

Llanos

Putumayo

Guajira

Mag

dale

na

Catatumbo

PacificCoast

SinuSan Jacinto


Heavy oil trend

Major under explored heavy oil belt 4.2 million net acres (30 - 50% WI) Partnered with Pacific Rubiales and Ecopetrol

Tumaco

CAG 5

PUT 9CAG 6

CPE 8CPO 12

CPE 6

CPO 9

Rubiales Field

PutumayoBasin

LlanosBasin

Colombia

Ecuador

TLM blocksFarmout blocksEquin blocksExport terminalGas pipelinesOil pipelines


Heavy oil trend: CPO 9 block

Tumaco

CAG 5

PUT 9CAG 6

CPE 8CPO 12

CPE 6

Rubiales Field

PutumayoBasin

LlanosBasin

Colombia

Ecuador

CPO 9

Akacias 1

TLM blocksFarmout blocksEquin blocksOil discoveryExport terminalGas pipelinesOil pipelines

CPO 9 Akacias-1

Eocene T2 San FernandoDeviated Well

Ecopetrol 55% (Operator) Talisman 45%

1,250 1,250 bbls/dbbls/d testtest11,700 ft depth11,700 ft depth99 API gravityAPI gravity 20


1000000 1020000 1040000 1060000 1080000

9000

0092

0000

9400

00

7330'0"W7340'0"W7350'0"W740'0"W7410'0"W

40'

0"N

350

'0"N

340

'0"N

330

'0"N

Block9_leads_afe.mxd

Akacias-1

3D

Block CPO 9

Heavy oil trend: CPO 9 Heavy oil trend: CPO 9 AkaciasAkacias--1 discovery & prospects1 discovery & prospects

3DSeismic

Humadea

3DSeismic

Chichimene: ~24 mboe/d (2010E)~59 mboe/d (2011E)

Castilla: ~94 mboe/d (2010E)~117 mboe/d (2011E)

Production data source: Ecopetrol

Heavy oil trend: CPO 9 Heavy oil trend: CPO 9 illustrative illustrative crosscross--section Akacias oil discovery section Akacias oil discovery

SECPO 9 Ecopetrol 55%, Talisman 45% Cubarral Block Ecopetrol 100%

Eocene T2 UnitEocene T2 Unit

NWAkacias-1

22


Heavy oil trend: CPE 6


Tumaco

CAG 5

PUT 9CAG 6

CPE 8CPO 12

CPE 6

Rubiales Field

PutumayoBasin

LlanosBasin

Colombia

Ecuador

CPO 9

Guairuro1-5

Guairuro Stratigraphic WellsBlock CPE-6 Southern Llanos

Pacific 50% (Operator)Talisman 50%


24


Heavy oil trend: CPE 6 structural & stratigraphic traps

NW SE

~1000m

NW SE

~1000m

Paleozoic Basement

C9 Sands

Onlap

Onlap

Onlap

Incised valley traps sand reservoir

Basel Carbonera Reservoir

Heavy oil trend: CPE 6 block

Drill final Technical Evaluation Agreement (TEA) commitment well 1H 2011

Convert block from TEA to E&P in 2011

Obtain environmental permits

Drill appraisal wells and flow test the reservoir

Acquire appraisal 3D seismic


Heavy oil trend: CPO 12


Tumaco

CAG 5

PUT 9CAG 6

CPE 8CPO 12

CPE 6

Rubiales Field

PutumayoBasin

LlanosBasin

Colombia

Ecuador

CPO 9

CPO 12: Talisman 30%, Pacific Rubiales 40% (operated), Cepsa 30% 2D seismic acquired in 2010 Exploring for similar heavy oil targets as Rubiales


CPE 8: Talisman 50% - operator, Ecopetrol 50% Seismic operation commenced late 2010 Exploring for similar heavy oil targets as Rubiales Drilling stratigraphic wells late 2011 early 2012


Tumaco

CAG 5

PUT 9CAG 6

CPE 8CPO 12

CPE 6

Rubiales Field

PutumayoBasin

LlanosBasin

Colombia

Ecuador

CPO 9


Putumayo Basin

40 mboe/d current Industry production in Putumayo Basin Blocks granted by 1Q/2011 (1 TEA / 2 E&P) Partnered with Pacific Rubiales Commitments of approximately US$56 million net over next 2 years


Tumaco

CAG 5

PUT 9CAG 6

CPE 8CPO 12

CPE 6

CPO 9

Rubiales

PutumayoBasin

LlanosBasin

Colombia

Ecuador

OTA

Colombia established oil and gas infrastructure

Established transport infrastructure with capacity constraints being addressed OCENSA being upgraded, Bicentanario pipeline under construction

Transgas

Ocensa

OTA

ODL

ODC

OBC

OAM

Cao Limn

Apiay El Porvenir


2010 transformational year for Talisman Colombia

2010 success BP Colombia acquisition Akacias discovery Block CPE 6 stratigraphic drilling Huron discovery being appraised Block CPE 8 seismic program initiated Three blocks acquired in Putumayo basin Objective - build new core area of 50,000 boe/d

Partnered with the right companies

Capable, established operating company (Equin/OCENSA)


Key Historical Data

2010 2009 2008 2007 2006 2005Daily production, before royalties

Oil & liquids (mbbl/d) 189 211 224 241 262 250 Natural gas (mmcf/d) 1,367 1,283 1,247 1,265 1,342 1,319 Barrels of oil equivalent (mboe/d) 417 425 432 452 485 470

Daily production, after royaltiesOil & liquids (mbbl/d) 160 181 187 203 220 216 Natural gas (mmcf/d) 1,161 1,088 992 1,017 1,091 1,043 Barrels of oil equivalent (mboe/d) 353 362 352 373 402 390

Proved reserves, before royaltiesOil & liquids (mmbbl) 510 532 545 749 767 736 Natural gas (bcf) 5,237 5,273 5,338 5,464 5,403 5,417 Barrels of oil equivalent (mmboe) 1,383 1,411 1,434 1,660 1,667 1,639

Drilling activity (gross wells)North America - Oil & liquids 65 5 138 128 194 171 North America - Natural gas 243 154 286 288 496 495 North America Total 308 159 424 416 690 666 North America - Drilling success (%) 100 98 100 98 98 97

International - Oil & liquids 57 59 73 73 65 51 International - Natural gas 11 12 37 11 18 5 International Total 68 71 110 84 83 56 International - Drilling success (%) 85 86 89 79 83 81

Net undeveloped land (thousands of acres) North America 6,940 9,145 9,786 9,559 7,837 5,588 International 29,673 26,208 16,443 12,948 11,048 13,484 Total 36,613 35,353 26,229 22,507 18,884 19,072


Key Historical Data

2010 2009 2008 2007 2006 2005Ratios and Key Indicators (C$ millions, except per share)

Cash flow 3,058 3,961 6,163 4,327 4,748 4,672 Net Income 648 437 3,519 2,078 2,005 1,561 Per Common Share

Cash flow 3.00 3.90 6.06 4.19 4.35 4.23 Net Income 0.64 0.43 3.46 2.01 1.84 1.41

Exploration & development spending 3,953 4,245 5,106 4,449 4,578 3,179 Acquisitions 1,562 438 452 317 204 3,170 Dispositions 2,347 2,772 442 1,477 872 22

Average Royalty Rate (%) 16 15 18 17 17 17 Unit operating costs (C$/boe) 12.80 12.91 13.57 12.14 9.98 8.41 Unit DD&A (C$/boe) 15.21 17.36 16.44 14.74 12.22 10.88 Return on capital employed (%) * 5.9 4.1 26.6 18.0 19.3 19.1

Balance Sheet Info (C$ millions)Property, plant & equipment ** 18,804 16,431 18,540 16,363 16,655 13,806 Total assets 24,193 23,618 24,275 21,420 21,481 18,354 Long-term debt (including current portion) 4,181 3,780 3,961 4,862 4,560 4,263 Shareholders' equity 10,479 11,111 11,150 7,963 7,307 5,729

Share information, adjusted to reflect stock splitsAverage common shares outstanding (millions) 1,018 1,019 1,019 1,019 1,064 1,099 TSX trading info

Average daily trading volume (thousands) 5,042 4,066 3,727 2,951 3,254 3,143 High (C$) 22.32 20.17 24.92 22.67 24.84 20.83 Low (C$) 15.71 9.92 8.28 16.90 16.12 10.50 Close (C$) 22.12 19.69 12.18 18.39 19.80 20.53

NYSE trading infoAverage daily trading volume (thousands) 3,120 3,998 4,248 2,115 2,139 1,384 High (US$) 22.43 19.51 25.71 22.08 21.62 18.08 Low (US$) 14.70 7.97 6.42 15.04 14.21 8.36 Close (US$) 22.19 18.64 9.99 18.52 16.99 17.63

Commodity InformationWTI (average US$/bbl) 79.53 61.79 99.65 72.31 66.25 56.70 NYMEX gas (average US$/mmbtu) 4.39 4.05 8.95 6.92 7.26 8.55 US$/C$ exchange rate (year end) 1.01 0.96 0.82 1.01 0.86 0.86

Realized product pricing, before hedging activitiesOil & liquids (C$/bbl) 80.52 67.36 96.43 75.00 69.82 62.78 Natural gas (C$/mcf) 5.76 5.29 9.01 6.99 7.20 8.30

* Return on capital employed = Net income plus tax effected interest / (average shareholders' equity + average net debt). ** 2009 restated for continuing operations.


Advisories

Forward-Looking Information This presentation contains or incorporates by reference information that constitutes forward-looking information or forward-looking statements (collectively forward-looking information) within the meaning of applicable securities legislation. This forward-looking information includes, but is not limited to, statements regarding: expected expansion of Piedemonte and expansion and sanction of OCENSA; planned drilling and exploration activities by both Talisman Colombia and Equin Energia Limited; production objectives; and planned investments and activities in the Putumayo Basin. The forward-looking information is based on Talismans 2011 capital program as announced on January 11, 2011. Talisman set its 2011 capital expenditure plans assuming: (1) Talismans production in 2011 will be approximately 5-10% greater than 2010, excluding the BP Colombia acquisition; (2) a WTI oil price of approximately US$75/bbl; and (3) a NYMEX natural gas price of approximately US$4/mmbtu. Information regarding business plans generally assumes that the extraction of crude oil, natural gas and natural gas liquids remains economic. Undue reliance should not be placed on forward-looking information. Forward- looking information is based on current expectations, estimates and projections that involve a number of risks which could cause actual results to vary and in some instances to differ materially from those anticipated by Talisman and described in the forward-looking information contained in this presentation. The material risk factors include, but are not limited to: the risks of the oil and gas industry, such as operational risks in exploring for, developing and producing crude oil and natural gas, market prices and demand and unpredictable facilities outages; risks and uncertainties involving geology of oil and gas deposits; uncertainty related to securing sufficient egress and markets to meet shale gas production; the uncertainty of reserves and resources estimates, reserves life and underlying reservoir risk; the uncertainty of estimates and projections relating to production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; fluctuations in oil and gas prices, foreign currency exchange rates and interest rates; health, safety and environmental risks, including risks related to the possibility of major accidents; uncertainties as to the availability and cost of credit and other financing and changes in capital markets; risks in conducting foreign operations (for example, political and fiscal instability, the possibility of civil unrest, military action or rebel hostilities or the risk of abduction, expropriation or nationalization); changes in general economic and business conditions; and the possibility that government policies or laws may change or governmental approvals may be delayed or withheld. The foregoing list of risk factors is not exhaustive. Additional information on these and other factors which could affect the Companys operations or financial results or strategy are included under the heading Risk Factors and elsewhere in the Companys most recent annual information form. In addition, information is available in the Companys other reports on file with Canadian securities regulatory authorities and the SEC. Forward-looking information is based on the estimates and opinions of the Companys management at the time the information is presented. The Company assumes no obligation to update forward-looking information should circumstances or managements estimates or opinions change, except as required by law.

Gross Production In this presentation, Talisman makes reference to production volumes. Such production volumes are stated on a gross basis, which means they are stated prior to the deduction of royalties and similar payments. In the US, net production volumes are reported after the deduction of these amounts. Boe Conversion In this presentation, barrels of oil equivalent (boe) are calculated at a conversion rate of six thousand cubic feet (mcf) of natural gas for one barrel of oil (bbl). Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalence conversion method primarily applicable at the burner tip and does not represent a value equivalence at the wellhead.


US Dollars Dollar amounts are presented in US dollars, except where otherwise indicated. Analogous Information In this presentation, Talisman discloses analogous information as defined by National Instrument 51-101 which is relevant to the Company for comparative purposes. The Company cannot confirm that the analogous information (consisting of production estimates in CPO-9) was prepared by a qualified reserves evaluator nor that it was prepared in accordance with the COGE Handbook.


Notes

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11 03 talisman colombia overview presentation web

Documents

blocks heavy oil

blocks foreland

net acres llanos

putumayo basin cag

development blocks

magdalenavalley2000two

blocksputumayo basin

putumayo basins basin