Talisman acquires foothold in Norwegian North Sea

Talisman Energy (UK) Ltd. has entered into an agreement with BP Norge AS, to acquire the BP-operated interest in the Norwegian Gyda field, associated facilities and adjacent acreage. The assets to be acquired include a 61% equity share in license PL 019B comprising block 2/1 and 7/12 and containing the Gyda field and platform facilities. The Gyda field is wholly contained within block 2/1a.

Talisman Energy (UK) Ltd. has entered into an agreement with BP Norge AS, to acquire the BP-operated interest in the Norwegian Gyda field, associated facilities and adjacent acreage. The assets to be acquired include a 61% equity share in license PL 019B comprising block 2/1 and 7/12 and containing the Gyda field and platform facilities. The Gyda field is wholly contained within block 2/1a. Also to be acquired is 61% of the Gyda gas export pipeline (a 43 km, 12 in. pipeline to the Ekofisk platform), 45% of PL 019C comprising block 2/1 containing the Kark prospect, and equity in license PL019B, currently held by: BP Norge AS 61%, DONG Norge AS 34%, and Norsk AEDC 5%.

"Gyda is a good quality and well maintained asset and this acquisition offers us the opportunity to become a unique niche player in Norway through the application of our UK strategy. With this foothold, we hope Norway will become a core producing area for Talisman over the next few years," said Jim Buckee, president and CEO. "We have identified a number of field growth opportunities, which we expect will lead to increased reserves and added value achieved by applying newly acquired 3D seismic imaging combined with conventional infill drilling and the introduction of gas lift. A number of nearby exploration prospects in adjacent acreage offer potential for further growth."

The acquisition will realize over 40 MMboe of liquid reserves together with production of 7,000 MMboe/d in 2003, which is expected to increase to 24,000 MMboe/d in 2006, in line with the planned reservoir rejuvenation program. In addition, access to capacity rights in the Ula Transportation System will reduce transport costs and improve operating cost metrics. Opportunities exist to further develop this new core area through other asset deals in Norway.

05/19/03

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