Corporate Information

1. Douglas D. Baldwin ^2,3,4,6
   Chairman, Talisman Energy Inc.
   Alberta, Canada
   Doug Baldwin was the President and Chief Executive Officer of TransCanada PipeLines Limited from 1999 to 2001, Senior Vice- President and a director of Imperial Oil Limited from 1992 to 1998 and President and Chief Executive Officer of Esso Resources Canada Limited from 1988 to 1992.
2. William R. P. Dalton ^1,3
   Arizona, United States
   William Dalton was Chief Executive of HSBC Bank plc from 1998 to 2004, Executive Director of HSBC Holdings plc from 1998 to 2004, Global Head of Personal Financial Services for HSBC Group from 2002 to 2004 and held various positions in the Canadian operations of HSBC prior to 1998.
3. Kevin S. Dunne ^5,6
   Tortola, British Virgin Islands
   Kevin Dunne held various international senior and executive management positions with BP plc, including General Manager of Abu Dhabi Company for Onshore Oil Operations (ADCO), a BP joint venture, from 1994 to 2001, Corporate Associate President of BP Indonesia from 1991 to 1994 and Corporate Head of Strategy for the BP Group based in London from 1990 to 1991.
4. John A. Manzoni ^2,5
   Alberta, Canada
   John Manzoni was appointed President and Chief Executive Officer of Talisman Energy Inc. on September 1, 2007. During the past 24 years, Mr. Manzoni held several senior strategic and operational leadership positions with BP plc and its global group of companies. From 2002 to 2007, he served as Chief Executive, Refining and Marketing (BP Group) and was on the board of directors of BP plc.
5. Lawrence G. Tapp ⁴
   British Columbia, Canada
   Lawrence Tapp is the Chairman of Softchoice Corporation and Mainstreet Equity Corporation. Mr. Tapp was the Dean of the Richard Ivey School of Business of the University of Western Ontario from 1995 to 2003, Executive in Residence of the Faculty of Management and Adjunct Professor of the University of Toronto from 1992 to 1995 and Vice Chairman, President and Chief Executive Officer of Lawson Mardon Group Limited from 1985 to 1992.

6. Stella M. Thompson ^2,4,5
   Alberta, Canada
   Stella Thompson was co-founder and principal of Governance West Inc. from 1996 to 2008 and was President of Stellar Energy Ltd. from 1991 to 1996. Ms. Thompson was Vice-President, Planning, Business Information & Systems of Petro-Canada Products prior to June 1991.
7. John D. Watson ^1,3
   Alberta, Canada
   John Watson was the Executive Vice-President and Chief Financial Officer of EnCana Corporation from April 2002 to February 2006. He was the Chief Financial Officer of Alberta Energy Company Ltd. from June 1987 to March 2002.
8. Robert G. Welty ^1,3
   Alberta, Canada
   Robert Welty served as the Chairman and a Director of Sterling Resources Ltd. (“Sterling”) from 1997 to 2007 and as Chief Executive Officer of Sterling from 1998 to 2005. Mr. Welty was the President of Escondido Resources (International) Ltd. from 1996 to 1997, President and Chief Executive Officer of Canadian Fracmaster Ltd. from 1994 to 1995, President and Chief Executive Officer of Bow Valley Energy Inc. from 1992 to 1994 and President and Chief Executive Officer of Asamera Inc. from 1976 to 1988.
9. Charles R. Williamson ^2,3,4
   California, United States
   Charles Williamson was the Executive Vice-President of Chevron Corporation from August to December 2005, Chairman and Chief Executive Officer of Unocal Corporation (“Unocal”) from 2001 to 2005 and held various executive positions within Unocal, including Executive Vice-President, International Energy Operations and Group Vice-President, Asia Operations prior to 2001.
10. Charles W. Wilson ^1,5,6
    Colorado, United States
    Charles Wilson was the President and Chief Executive Officer of Shell Canada from 1993 to 1999, Executive Vice-President US Downstream Oil and Chemical of Shell Oil Company (“Shell”) from 1988 to 1993, Vice-President US Refining and Marketing of Shell and held various positions in the domestic and international natural resource operations of Shell prior to 1988.

1. Member of Audit Committee
2. Member of Executive Committee
3. Member of Governance and Nominating Committee
4. Member of Management Succession and Compensation Committee
5. Member of Health, Safety, Environment and Corporate Responsibility Committee
6. Member of Reserves Committee

corporate information

executives

1. John A. Manzoni
   President and Chief Executive Officer
2. A. Paul Blakeley
   Executive Vice-President International Operations (East)
3. Ronald J. Eckhardt
   Executive Vice-President North American Operations
4. T. Nigel D. Hares¹
   Executive Vice-President International Operations (West)
5. Robert M. Redgate
   Executive Vice-President Corporate Services
6. Robert R. Rooney
   Executive Vice-President Legal and General Counsel
7. John ‘t Hart¹
   Executive Vice-President, Exploration
8. L. Scott Thomson
   Executive Vice-President Finance and Chief Financial Officer

1. Will be retiring in 2009.
   Effective March 2, 2009, Paul Smith was appointed
   Executive Vice-President, International Operations
   (West) and Richard Herbert was appointed Executive
   Vice-President, Exploration.
   

investor relations and corporate communications contacts

investor information

advisories

Talisman Energy Inc.’s subsidiaries conduct business in various parts of the world. Unless the context indicates otherwise, reference in this Annual Report Summary to “Talisman” or the “Company” is intended to include, for reporting purposes only, the direct or indirect subsidiaries of Talisman Energy Inc. and partnership interests held by Talisman Energy Inc. and its subsidiaries. Such use of “Talisman” or the “Company” to refer to these other legal entities and partnership interests does not constitute a waiver by Talisman Energy Inc., such entity or partner of their separate legal status, for any purpose.

Dollar amounts are presented in C$ unless otherwise indicated.

References to production, reserves, acreage and drilling are gross (before royalty) numbers, unless otherwise indicated.

forward-looking information

This Annual Report Summary contains information that constitutes “forward-looking information” or “forward-looking statements” (collectively “forward-looking information”) within the meaning of applicable securities legislation. Forward-looking information is included throughout this Annual Report Summary, including, among other places, under the headings “Looking to 2009”, “President’s Message”, “North America”, “Southeast Asia”, “North Sea”, Other Operating Areas”, “International Exploration” and “Our People”. This forward-looking information includes, but is not limited to, statements regarding:

• planned 2009 capital program and sources of funding;
• planned unconventional drilling, development and pilot programs;
• planned development of Northern Fields in PM-3 CAA, expected first oil and dry gas from the Northern Fields and sanctioning of early production in Vietnam;
• planned development of Yme, Burghley and Auk North and redevelopment of Auk South;
• planned international exploration drilling and appraisal;
• planned focus on safety, leadership, equipment integrity and risk management;
• expected production growth in Southeast Asia;
• planned drilling, appraisal and development in Vietnam and Indonesia and expected first production from Tangguh;
• possible reduction in UK presence;
• planned drilling and new projects in the UK North Sea and Norway;
• expected completion of a water injection development project at Tweedsmuir;
• expected timing of new well to be brought onstream at Rev;
• expected first oil from EMK, planned exploration wells in Tunisia, development drilling and facilities work;
• planned exploration and drilling activities in Southeast Asia, including exploration in Australia;
• planned drilling in Colombia;
• planned drilling and evaluation in Peru;
• expected completion of wells and seismic acquisition in Kurdistan; and
• other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance.

Each of the forward-looking information listed above are based on Talisman’s 2009 capital program as announced on January 13, 2009. The material assumptions supporting the 2009 capital program are: (1) 2009 annual production of approximately 430,000 boe/d; (2) a US$40/bbl WTI oil price for 2009 and (3) a US$5/mmbtu NYMEX natural gas price for 2009. 2009 production estimates are subject to the timing of development activities and include the anticipated completion of planned dispositions. The completion of any contemplated disposition is contingent on various factors, including market conditions, the ability of the Company to negotiate acceptable terms of sale and receipt of any required approvals for such dispositions.

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 Annual Report Summary. 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 demand and unpredictable facilities outages;
• the impact of the economy and credit crisis on the ability of the counterparties to the Company’s commodity price derivative contracts to meet their obligations under the contracts;
• risks and uncertainties involving geology of oil and gas deposits;
• 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;
• the outcome and effects of any future acquisitions and dispositions;
• health, safety and environmental risks;
• uncertainties as to the availability and cost of financing and changes in capital markets;
• risks in conducting foreign operations (for example, political and fiscal instability or the possibility of civil unrest or military action);
• changes in general economic and business conditions;
• uncertainties as to the availability and cost of financing and changes in capital markets;
• the effect of acts of, or actions against, international terrorism; and
• the possibility that government policies or laws may change or government 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 Company’s operations or financial results or strategy are included under the heading “Risk Factors” in the Company’s Annual Information Form (AIF) and elsewhere in the AIF; in addition, information is available in the Company’s other reports on file with Canadian securities regulatory authorities and the United States Securities and Exchange Commission (SEC).

Forward-looking information is based on the estimates and opinions of the Company’s management at the time the information is presented. The Company assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change, except as required by law.

reserves data and other oil and gas information

Talisman’s disclosure of reserves data and other oil and gas information is made in reliance on an exemption granted to Talisman by Canadian securities regulatory authorities, which permits Talisman to provide disclosure in accordance with US disclosure requirements. The information provided by Talisman may differ from the corresponding information prepared in accordance with Canadian disclosure standards under National Instrument 51-101 (NI 51-101). Talisman’s proved reserves have been calculated using the standards contained in Regulation S-X of the SEC. US practice is to disclose net proved reserves after deduction of estimated royalty burdens. Talisman makes additional voluntary disclosure of gross proved reserves. Further information on the differences between the US requirements and the NI 51-101 requirements is set forth under the heading “‘Note Regarding Reserves Data and other Oil and Gas Information” in Talisman’s AIF.

The SEC normally permits oil and gas companies to disclose in their filings with the SEC only proved reserves that have been demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions.

The exemption granted to Talisman also permits it to disclose internally evaluated reserves data. Any reserves data in this Annual Report Summary reflects Talisman’s estimates of its reserves. While Talisman annually obtains an independent audit of a portion of its reserves, no independent qualified reserves evaluator or auditor was involved in the preparation of the reserves data disclosed in this Annual Report Summary.

Throughout this Annual Report Summary, the calculation of barrels of oil equivalent (boe) is at a conversion rate of six thousand cubic feet (mcf) of natural gas for one bbl of oil and the calculation is mcfe is at a conversion rate of one barrel of oil (bbl) for six mcf of natural gas. Boes and mcfes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl and a mcfe conversion ratio of 1 bbl:6 mcf are based on an energy equivalence conversion method primarily applicable at the burner tip and do not represent a value equivalence at the wellhead.

Talisman makes reference to production volumes throughout this Annual Report Summary. Where not otherwise indicated, 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.

The reserves replacement ratios (before net acquisitions and dispositions) were calculated by dividing the sum of changes (revisions of estimates and discoveries) to estimated gross proved oil and gas reserves during 2008 by the Company’s 2008 gross production. The Company’s management uses reserves replacement ratios, as described above, as an indicator of the Company’s ability to replenish annual production volumes and grow its reserves. It should be noted that a reserves replacement ratio is a statistical indicator that has limitations. As an annual measure, the ratio is limited because it typically varies widely based on the extent and timing of new discoveries, project sanctioning and property acquisitions. Its predictive and comparative value is also limited for the same reasons. In addition, since the ratio does not include the cost, value or timing of future production of new reserves, it cannot be used as a measure of value creation.

non-GAAP financial measures

Included in this Annual Report Summary are references to financial measures commonly used in the oil and gas industry, such as cash flow, cash flow per share, earnings from continuing operations, earnings from continuing operations per share and net debt. These terms are not defined by GAAP in either Canada or the US. Consequently, these are referred to as non-GAAP measures. Talisman’s reported cash flow, cash flow per share, earnings from continuing operations, earnings from continuing operations per share and net debt may not be comparable to similarly titled measures by other companies. Cash flow, as commonly used in the oil and gas industry, represents net income before exploration costs, DD&A, future taxes and other non-cash expenses. Cash flow is used by the Company to assess operating results between years and between peer companies that use different accounting policies. Cash flow should not be considered an alternative to, or more meaningful than, cash provided by operating, investing and financing activities or net income as determined in accordance with Canadian GAAP as an indicator of the Company’s performance or liquidity. Cash flow per share is cash flow divided by the average number of common shares outstanding during the period. A reconciliation of cash provided by operating activities to cash flow follows.