Talisman Energy Announces Exploration Discoveries in Peru and the North Sea

Business Wire, Jan 17, 2006

CALGARY, Alberta -- Talisman Energy Inc. (TSX:TLM) (NYSE:TLM) has announced oil discoveries in Peru and the North Sea.

Talisman (Peru) Ltd., a wholly owned subsidiary of Talisman Energy Inc., has participated in an oil discovery in Block 64 in the Maranon Basin in Peru.

The well, Situche Central 1X was drilled to a depth of 17,738 feet in the Cushabatay Formation.

Talisman (Peru) Ltd. and Amerada Hess Peru, Inc. participated for 50% each in a well test of a single zone which tested at a rate of 2,396 bbls/d of 34.5 degrees API oil at 1,166 psi flowing pressure, on a 3/8 inch choke, which was flowed at a restricted drawdown due to surface constraints. The well test was conducted as an exclusive operation by Talisman (Peru) Ltd. and Amerada Hess Peru, Inc. Occidental Petrolera del Peru, LLC is the operator. The working interests in Block 64 are Occidental Petrolera del Peru, LLC, 50%; Talisman (Peru) Ltd., 25%; and Amerada Hess Peru, Inc. 25%, subject to the rights and obligations associated with the exclusive operation. The parties are currently working to determine future plans in Block 64.

Operations in Block 64 were conducted in an environmentally and socially responsible manner. Sound industry practices have been implemented to minimize potential impacts on the local ecosystem. No access roads were constructed during the exploration program. All equipment and personnel were transported to the area using helicopters and barges. In addition, local indigenous community members have been consulted extensively by the operator since 2001 and continue to participate in various aspects of the exploration program.

In the Central UK North Sea, Talisman North Sea Limited (Talisman), a wholly owned subsidiary of Talisman Energy (UK) Limited, has made an oil discovery adjacent to the Balmoral and Beauly fields. The discovery was made in Block 16/22 and is operated by Talisman. Together with its affiliated companies, Talisman has a 37.0% equity interest with remaining equity held by Summit North Sea Oil Limited (41.1%) (Summit) and Eni (21.9%).

The 16/22-7 well successfully tested an exploration prospect some 10 km northeast of the Balmoral field, where Talisman holds a 15.13% interest and 15 km northeast of the Beauly field of which Talisman is operator, with a 60% equity interest (Summit holds the remaining 40% equity interest).

This well was successfully appraised by a sidetrack (16/22b-7z). The wells were not tested, however an extensive pressure and fluid sample program was carried out indicating light oil. The discovery will now be evaluated further using re-processed 3D seismic data with a view to confirming its commerciality and, if appropriate, determining the optimal development plan.

In Qatar, Talisman Energy (Qatar) Inc. (TEQ) drilled and subsequently plugged and abandoned its Block 10 TQ-1 offshore exploration well. The TQ-1 well targeted a small structural closure and was a different play type than the main stratigraphic play TEQ is pursuing. Interpretation of 3D seismic data on the main play is progressing. TEQ plans to drill one or two wells on this play late in 2006.

In Colombia, drilling operations continue on the Tangara-1 exploration well, which is proceeding with a third sidetrack hole. Two of the joint venture parties are conducting the sidetrack as an exclusive operation. Talisman Colombia Oil & Gas Ltd. (TCOG) retains the rights to participate in appraisal or development if a discovery is made. Meanwhile, TCOG will evaluate the results of this well which will likely lead to further exploration activities in the Llanos basin.

Talisman Energy Inc. is a large, independent oil and gas producer with operations in Canada and, through its subsidiaries, the North Sea, Indonesia, Malaysia, Vietnam, Australia, Algeria, Trinidad and Tobago, Tunisia and the United States. Talisman's subsidiaries also conduct business in Colombia, Qatar, Peru, Romania and Gabon. 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 and environmental responsibility wherever its business is conducted. The Company is a participant in the United Nations Global Compact, a voluntary initiative that brings together companies, governments, civil society and other groups to advance human rights, labour and environmental principles. 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

This news release contains statements concerning estimated volumes and timing of future production, business plans for exploration, development and drilling, or other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about future events, conditions, results of operations or performance that constitute "forward-looking statements" within the applicable securities legislation.