CALGARY, ALBERTA–(Marketwire – Jan. 11, 2010) – Talisman Energy Inc. (TSX:TLM) (NYSE:TLM) voiced the collateral spending skeleton for 2010. The association expects to enlarge spending this year, reflecting increases in shale training in North America and aloft expansion spending in Southeast Middle East and the North Sea. The devise additionally maintains the company’s shift piece strength and monetary flexibility, whilst transitioning to long-term, essential growth. Highlights include:

- Capital spending of $5.2 billion, an enlarge of larger than 10% over 2009, saved by handling money flow, approaching item sales and Talisman’s shift piece strength. Approximately $300 million of the collateral bill consists of non-cash items.

- Expected prolongation comparatively unvaried from 2009, incompatible 2010 item sales. The association is mending the peculiarity of the portfolio as it cycles collateral in to resources with the intensity for aloft earnings and aloft growth.

- Spending $1.6 billion on North American shale properties. Within the Pennsylvania Marcellus and Montney shale plays, expansion training is approaching to some-more than double. Talisman will additionally outlay $270 million on compulsory properties.

- Examining the sale of a poignant volume of non-core compulsory resources in North America, depending on marketplace conditions. These resources have been now producing we estimate 40,000 boe/d.

- Development spending of $800 million in the UK, together with the Auk North, Auk South and Burghley expansion projects. The association skeleton to outlay $550 million money (plus an one some-more $300 million in non-cash spending) on expansion projects in Norway with the Yme margin redevelopment and infill training at Varg, Gyda and Brage.

- $780 million of expansion spending in Southeast Middle East with brand brand brand brand brand new oil margin developments in Vietnam and Australia, as good as expansion training and height upgrades in Malaysia.

- $700 million of ubiquitous scrutiny spending, with key wells in South America, the Middle East and Southeast Asia. We design to cavalcade 4 onshore wells in Papua New Guinea (PNG) this year, together with a expansion well.

- An one some-more $190 million for expansion in the rest of universe and for alternative projects.

The association expects which expecting and expansion (F&D) costs will tumble in 2009 and again in 2010. Talisman skeleton to emanate the year finish 2009 formula on Feb 10, 2010.

“Our main priority in 2010 will be stability the portfolio transition, in sold ramping up expansion of the Marcellus and Montney shale plays,” pronounced John A. Manzoni, President and CEO. “We will additionally be examining for sale one some-more non-core compulsory resources in North America and go on to raise the ubiquitous scrutiny portfolio and capabilities as we set up on final year’s success.

“The second priority will be to go on the concentration on earnings and profitability. We design earnings to enlarge as we successfully cycle collateral in to aloft worth investments, which should additionally lead to one after an additional alleviation in the F&D costs. We have put processes in place to conduct the collateral programs some-more efficiently; we have been reviewing costs opposite the organization, and implementing opening supervision collection via the business.

“Third, we will go on to set up the organizational capability. Our senior manager group was strengthened final year with the serve of Paul Smith, Richard Herbert and Nick Walker at the senior manager level, as good as poignant brand brand brand brand brand new bent opposite the organization, together with brand brand brand brand brand new nation managers for Malaysia and PNG. We will go on to ascent the capabilities and processes, and rise the bent opposite the classification in 2010.

“There have been a series of key outcomes from the 2010 plan.

“We will say shift piece strength and flexibility. The $4.9 billion in money spending will be saved from handling money flow, non-core item sales and shift piece strength. We have written the module to be clever at US$60/bbl oil prices and US$3.50/mmbtu healthy gas prices, with estimable coherence to regulate the collateral module up or down in light of conditions via the year. We will additionally sojourn observant for vital merger opportunities.

“The collateral module has a clever expansion bias, with we estimate 85% destined towards expansion programs and 15% towards ubiquitous exploration. Within the expansion portfolio, 36% has been allocated towards shale programs in North America, 19% for Norway, 18% for the UK, 18% for Southeast Asia, 6% for North American compulsory gas and 3% for the rest of world.

“North American shale emerges as the main nearby tenure prolongation expansion engine. Talisman expects to outlay $1.6 billion on shale programs this year, identical to final year, nonetheless 2009 enclosed estimable amounts for vital land acquisitions. This year, spending on land will be significantly less.

“Having built an register of 10 years worth of shale gas training locations, this year the concentration will shift to blurb expansion and drilling. Drilling in the Marcellus and Montney shale plays is approaching to some-more than double, from rounded off 70 expansion and commander wells in 2009 to over 200 this year.

“In the Marcellus, we will progressively enlarge from the stream 6 rigs, up to 10 by year end. We design to exit 2010 producing in in in between 250-300 mmcf/d, up from 65 mmcf/d at the finish of 2009. In the Montney, we design to cavalcade 35-40 plane wells, starting blurb expansion in the Greater Cypress and Farrell areas. In Quebec, we will exam the primary plane commander well, which was drilled in 2009, with skeleton for dual one some-more plane wells this year.

“We design to outlay $270 million on core compulsory properties in Canada. However, we have been additionally examining for sale, one some-more non-core pieces of the compulsory blurb operation in 2010 in sequence to yield supports for reinvestment and shift the North American bottom towards the shale business, which inside of the portfolio, generates aloft returns.

“The devise for the North Sea is to settle the shred as a stable, money generating blurb operation by the medium-term. Almost half of the $800 million in UK expansion spending in 2010 is slated for the Auk North and Auk South margin developments. There have been additionally poignant expenditures programmed for Claymore, Blake and Burghley. In addition, we have been evaluating expansion options for the Godwin, Cayley and Shaw discoveries.

“In Norway, the infancy of the $550 million money expansion bill is destined at bringing the Yme margin onstream, with primary oil approaching in the second half of 2010. Talisman additionally skeleton to cavalcade one some-more infill wells at Brage, Gyda and Varg.

“Southeast Middle East will go on as a expansion area with poignant upside from exploration. The $780 million expansion module includes HSD/HST margin expansion in Vietnam, ongoing expansion training and height upgrades in Malaysia and the Kitan oil margin expansion in Australia.

“Exploration wake up in 2010 includes intensity high-impact wells in Colombia, Peru, the Kurdistan shred of northern Iraq, Indonesia and PNG. In addition, we have been training scrutiny wells in Malaysia and the North Sea, together with a good to worth final year’s Grevling find in Norway.

“Production in 2010 is approaching to be broadly the same as 2009 at around 425,000 boe/d, incompatible any sales in North America during the year. Gains in shale volumes and from Southeast Middle East homogeneous declines in North American compulsory prolongation and the UK. However, tangible 2010 prolongation volumes will rely on the result of the divestment module in North America.

“While the underlying prolongation volumes will be prosaic again in 2010, the peculiarity of the portfolio will be mending as we cycle collateral in to aloft return, aloft expansion tools of the portfolio.

“The brand brand brand brand brand new portfolio citation is clear. New investment patterns have been determined for North America shale, vital scrutiny and the North Sea. We will go on to ascent the peculiarity of the portfolio and set up the organizational capability. Underpinning it all, of course, is tall peculiarity execution and delivering on the promises, which is imperative. With successful item sales, we design to have rebased the association by the finish of this year, set to expostulate tolerable and manifest expansion from which indicate forward.”

North America

In North America, Talisman’s design is to turn a leading, earnings based, shale gas producer. The association skeleton to outlay $1.9 billion in 2010, of which, we estimate $1.6 billion (85%) has been allocated toward shale programs, essentially in the Pennsylvania Marcellus and Montney.

This is rounded off allied to the volume Talisman outlayed on shale plays final year; however, the sum in 2009 enclosed poignant spending on shale land acquisitions. As a result of these purchases, Talisman has a 10 year training register (4,800 net training locations) on Tier 1 acreage inside of the Pennsylvania Marcellus and Montney shale plays. The volume of approaching spending budgeted for land is significantly reduce this year as the concentration shifts to drilling.

In the Pennsylvania Marcellus play, we have budgeted tighten to $1 billion, ramping up to 10 rigs (currently six) over the march of 2010. The devise is to cavalcade 170 net wells in the Marcellus this year (up from 53 in 2009), with about 145 wells finished and tied-in. We design to exit 2010 at in in in between 250-300 mmcf/d, up from 65 mmcf/d at the finish of 2009. Plans have been built on an approaching idealisation liberation per good of 3.5 bcf, with thirty day primary prolongation rates of 3 mmcf/d. The infancy of Marcellus wells have been accessible and the association has cumulative enough outlet capacity, H2O entrance and ordering for the 2010 plans.

In the Montney shale, Talisman is relocating the Farrell Creek and Greater Cypress areas in to blurb expansion with we estimate twenty-five plane expansion wells approaching in 2010 (with skeleton to finish seventeen of these during the year). In addition, we design to cavalcade 10-15 Montney shale commander wells, together with the primary multi-lateral, as we go on to delineate this large play. The association will enhance from 3 rigs to as many as 9 by the finish of the year, spending we estimate $550 million.

We design to exit the Montney shale in 2010 at in in in between 40-60 mmcf/d, formed on approaching idealisation recoveries of around 5 bcf per good and thirty day primary prolongation rates of 4.5 mmcf/d.

In Quebec, Talisman will finish the plane good proposed in 2009, with an one some-more dual plane wells programmed for this year, to serve de-risk the play.

The association additionally skeleton to outlay we estimate $270 million on compulsory programs in 2010. A poignant apportionment of this will be focused on Chauvin oil development, with many of the residue outlayed on tall return, parsimonious gas training in the Ojay and Wild River areas.

The association is examining the sale of a series of gas-weighted properties, which now furnish we estimate 40,000 boe/d. Although these have been tall peculiarity assets, they cannot effectively contest for collateral inside of Talisman’s portfolio.

North Sea

Capital spending in the North Sea is budgeted at $1.8 billion in 2010. Of the total, $160 million (9%) is being destined towards exploration. The devise additionally includes $300 million of non-cash collateral spending (capitalized leases) in Norway.

Major projects in the UK embody the Auk North plan (first prolongation 2011), the Auk South plan (first prolongation 2012) and the Burghley expansion (first prolongation late 2010). We have been completing a good north of Tweedsmuir to exam a northern prolongation of the field. We additionally have a full year of mobile scrutiny and expansion training planned. The association additionally expects to restart expansion training in Claymore and proceed the primary proviso of an ascent plan to the Claymore compressors, which should urge margin reliability.

Development formulation will embark for the brand new Cayley, Shaw and Godwin discoveries, which will be related to an ascent of the Montrose/Arbroath facilities.

In Norway, activities will concentration on bringing the Yme redevelopment plan onstream, with primary oil approaching in the second half of 2010. There is additionally a 10 good expansion module programmed for the Varg, Gyda and Brage areas.

Southeast Middle East

Talisman skeleton to outlay $1.1 billion in Southeast Middle East in 2010, with scrutiny spending accounting for $280 million, or 26% of the total.

Major activities embody a sixteen good infill training module at PM-3 CAA in Malaysia/Vietnam, height upgrades and formulation for the proviso 2 incremental oil liberation project.

The association is additionally expecting capitulation for the offshore HSD/HST oilfield developments in Vietnam, with poignant collateral spending this year. Similarly, expansion of the Kitan find offshore Australia is additionally approaching to begin this year. The association expects to begin expansion training in PNG, with an early condensate liberation intrigue in one of the blocks acquired final year.

International Exploration

The ubiquitous scrutiny bill for 2010 is $700 million, with two-thirds allocated to set up brand brand brand brand brand new core areas and one-third to await existent core areas. The idea of the module is to supplement 600-650 million boe of impending apparatus additions over the subsequent 5 years at a expecting price of reduction than $5/boe.

In Southeast Asia, Talisman will embark the Makassar Strait training module in Indonesia with dual wells in the Pasangkayu retard and will take seismic in the Andaman III block. In Malaysia, we will cavalcade a low scrutiny good in the PM-3 retard and reprocess seismic over the dual Sabah scrutiny blocks awarded in late 2009. In PNG, the association skeleton to take 1,000 kilometres of 2D seismic and cavalcade 4 onshore wells.

Following the successful Situche estimation good in Block 64 in Peru, the association skeleton to cavalcade the Runtasapa scrutiny good in diagonally opposite Block 101. In Colombia, Talisman is now training one scrutiny well, with an additional programmed for after in the year. The association skeleton to embark estimation training on the Huron find in the Niscota Block late in 2010. A series of seismic programs will additionally be acquired in the scrutiny blocks awarded in the Colombia 2008 bid rounds.

In the Kurdistan shred of northern Iraq, we will finish training the second scrutiny well, Kurdamir, in Block K44 and take seismic interpretation in Block 9.

In the North Sea, Talisman skeleton to cavalcade one scrutiny good in the UK and dual scrutiny wells in Norway. The 2009 Grevling find in Norway will be appraised.

Talisman Energy Inc. is a global, diversified, upstream oil and gas company, headquartered in Canada. Talisman’s 3 main handling areas have been North America, the North Sea and Southeast Asia. The Company additionally has a portfolio of ubiquitous scrutiny opportunities. Talisman is committed to conducting blurb operation safely, in a socially and environmentally obliged manner, and is enclosed in the Dow Jones Sustainability (North America) Index. Talisman is listed on the Toronto and New York Stock Exchanges underneath the pitch TLM. Please revisit the website at www.talisman-energy.com.

ADVISORIES

Forward-Looking Information

This headlines recover contains report which constitutes “forward-looking information” or “forward-looking statements” (collectively “forward-looking information”) inside of the definition of germane bonds legislation. This forward-looking report includes, between others, statements regarding:

- blurb operation plan and plans;

- approaching production;

- programmed collateral spending;

- programmed training and prolongation in the Marcellus;

- programmed training and prolongation in the Montney;

- programmed training in Quebec;

- programmed training and timing of prolongation in the UK;

- programmed good expansion module for the Varg, Gyda and Brage areas;

- approaching primary oil from Yme;

- approaching capitulation of HST/HSD expansion plan;

- programmed training module and height upgrades in Southeast Asia;

- derivation of expansion formulation for Cayley, Shaw and Godwin discoveries;

- programmed merger of 2D seismic and training module in PNG;

- approaching expansion of the Kitan discovery;

- idea of ubiquitous scrutiny program;

- programmed training module in Peru;

- programmed training program, merger of seismic programs and derivation of estimation module in Colombia;

- programmed training in the Kurdistan shred of northern Iraq;

- programmed training in the North Sea;

- approaching diminution in expecting and expansion costs;

- programmed dispositions of non-core compulsory assets; and

- alternative expectations, beliefs, plans, goals, objectives, assumptions, report and statements about probable destiny events, conditions, formula of operations or performance.

The following element assumptions were used in sketch the conclusions or creation the forecasts and projections contained in the forward-looking report contained in this headlines release. Talisman has set the 2010 collateral output skeleton assuming: (1) Talisman’s prolongation in 2010 will be broadly the same as 2009 at around 425,000 boe/d incompatible any sales in North America during the year; (2) a US$60/bbl WTI oil price, and (3) a US$3.50/mmbtu NYMEX healthy gas price. Information per blurb operation skeleton in all assumes which the descent of wanton oil, healthy gas and healthy gas liquids stays economic.

Undue faith should not be placed on forward-looking information. Forward-looking report is formed on stream expectations, estimates and projections which engage a series of risks, which could equates to tangible formula to shift and in a little instances to talk about materially from those approaching by Talisman and described in the forward-looking report contained in this headlines release. The element risk factors include, but have been not singular to:

- the risks of the oil and gas industry, such as operational risks in exploring for, building and producing wanton oil and healthy gas, marketplace direct and indeterminate comforts outages;

- risks and uncertainties involving geology of oil and gas deposits;

- the doubt of pot and resources estimates, pot hold up and underlying fountainhead risk;

- the doubt of estimates and projections relating to production, costs and expenses;

- the stroke of the manage to buy and credit predicament on the capability of the counterparties to the Company’s commodity price derivative contracts to encounter their obligations underneath the contracts;

- intensity delays or changes in skeleton with apply oneself to scrutiny or expansion projects or collateral expenditures;

- fluctuations in oil and gas prices, unfamiliar banking sell rates and seductiveness rates;

- the result and goods of any destiny acquisitions and dispositions;

- health, reserve and environmental risks;

- uncertainties as to the accessibility and price of financing and changes in collateral markets;

- risks in conducting unfamiliar operations (for example, domestic and mercantile instability or the probability of polite disturbance or troops action);

- changes in ubiquitous mercantile and blurb operation conditions;

- the probability which supervision policies or laws might shift or bureaucratic approvals might be behind or withheld; and

- formula of the Company’s risk slackening strategies, together with word and any hedging activities.

The foregoing list of risk factors is not exhaustive. Additional report on these and alternative factors, which could start the Company’s operations or monetary formula have been enclosed in the Company’s many brand new Annual Information Form. In addition, report is accessible in the Company’s alternative reports on record with Canadian bonds regulatory authorities and the United States Securities and Exchange Commission (SEC). Forward-looking report is formed on the estimates and opinions of the Company’s supervision at the time the report is presented. The Company assumes no requisite to refurbish forward-looking report should resources or management’s estimates or opinions change, solely as compulsory by law.

Gross Production

Throughout this headlines release, Talisman creates anxiety to prolongation volumes. Such prolongation volumes have been settled on a sum basis, which equates to they have been settled before to the reduction of royalties and identical payments. In the US, net prolongation volumes have been reported after the reduction of these amounts. US readers might impute to the list headed “Continuity of Proved Net Reserves” in Talisman’s many brand new Annual Information Form for a matter of Talisman’s net prolongation volumes by stating shred which have been allied to those done by US companies theme to SEC stating and avowal requirements.

Boe Conversion

Throughout this headlines release, barrels of oil homogeneous (boe) is distributed at a acclimatisation rate of 6 thousand cubic feet (mcf) of healthy gas for one tub of oil and is formed on an appetite equilibrium acclimatisation method. Boes might be misleading, quite if used in isolation. A boe acclimatisation comparative measure of 6 mcf:1 bbl is formed on an appetite equilibrium acclimatisation process essentially germane at the burner tip and do not paint a worth equivalency at the wellhead.

Canadian Dollars

Dollar amounts have been presented in Canadian dollars unless differently indicated.

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