INVESTOR OPEN HOUSE North Sea and Kurdistan May 2014 Please see advisories provided with this presentation NORTH SEA NORTH SEA BUSINESS OVERVIEW Montrose Area Redevelopment (MAR) • Drive value from late life assets while continuing to pursue divestments/dilutions – Restore reliability and efficiency – Execute major projects – Divest/dilute • UK Bridge linked platform to be installed – MAR project expected to deliver production late 2016 – Claymore Compression Upgrade will deliver >80% Operating Efficiency Existing platform • Norway – Yme MOPU to be removed summer 2015 – Yme redevelopment concept under evaluation New bridge linked platform (under construction) Heavy lift of compression unit May 2014 NYSE: TLM | TSX: TLM www.talisman-energy.com 1 MAR – ADDING INCREMENTAL PRODUCTION THROUGH REDEVELOPMENT Montrose Area Redevelopment (MAR) Montrose Cayley Arbroath Shaw Godwin • Jacket 2014 • First Production late 2016 • Topsides 2015 – 2016 • Peak Production 2017 NORTH SEA PROGRESS Portfolio Management Asset Rationalization • Increased management focus for Norway and UKJV Operating Efficiency • Develop optimized asset strategies Improving Performance – Focused asset plans Resource Recovery Project Execution • Stabilize operations while improving cash flow Capital Discipline – Realize economic value of resources – Effectively manage decommissioning • Increasing technical capability • Driving a performance culture Building a stronger business while continuing to pursue North Sea exit May 2014 NYSE: TLM | TSX: TLM www.talisman-energy.com 2 KURDISTAN KURDAMIR / TOPKHANA CROSS SECTION Post K-2 & K-3, oil presence in Topkhana is considered very likely T-1 T-2 Topkhana • • T-1 (drilled before K-2 & K-3) was not tested in the oil leg GOC 1882m in Topkhana extrapolated from K-2 and K-3 DST results Currently drilling K-2 K-1 K-3 Kurdamir Kurdamir OGC 1840mss Topkhana OGC 1882mss 2C ODT: 2049 mss 3C ODT: 2229 mss Prospective gas and condensate 2C gas and condensate Prospective oil 2C oil DST Intervals 3C oil Continuing appraisal to prove resource May 2014 NYSE: TLM | TSX: TLM www.talisman-energy.com 3 KURDAMIR / TOPKHANA – GROSS RECOVERABLE RESOURCE Gross recoverable unrisked resource Gas (bcf) May 2014 Topkhana Prospective (Best Estimate) Topkhana Contingent (2C) Kurdamir Contingent (2C) 1782 2825 1665 Condensate (mmbbls) 95 55 38 Oil (mmbbls) 610 0 268 NYSE: TLM | TSX: TLM www.talisman-energy.com 4 INVESTOR RELATIONS CONTACTS: Paul Smith Executive Vice President, Finance and Chief Financial Officer (403) 237.1434 ANALYST & INVESTOR RELATIONS INQUIRIES: Lyle McLeod Vice President, Investor Relations (403) 237.1020 GENERAL & MEDIA INQUIRIES: Simon Scott Head of Corporate & Investor Communications (403) 693.8493 TALISMAN ENERGY INC. Suite 2000, 888 - 3rd Street S.W. Calgary, AB T2P 5C5 Phone: (403) 237.1234 Fax: (403) 237.1902 Email: [email protected] Website: www.talisman-energy.com