Talisman Energy Kinabalu

ASIA-PACIFIC OVERVIEW
October 2013
TALISMAN OVERVIEW
Asia-Pacific
Growing free cash flow,
near-term exploration potential
$600 million free cash flow in
2012
Algeria Pertamina relationship
Ongoing rationalization within
Asia-Pacific
Americas
Resource plays provide
long-term growth
38 tcfe contingent resource
Colombia exploration,
development and
rationalization underway
Other areas considering

all options
UK Sinopec deal lowers exposure
Norway sales process underway
Kurdistan Kurdamir and Topkhana
appraisal ongoing
2013 production guidance 375 mboe/d

Liquids ~132 mbl/d
International gas ~580 mmcf/d
North American gas ~870 mmcf/d
1,700 mmboe 2P reserves*

45% liquids or liquids-linked
In addition:
6,700 mmboe contingent resource*
3,100 mmboe unrisked prospective resource*
*All reserves and resources converted at 6 mcf:1 boe
TWO CORE REGIONS: AMERICAS AND ASIA-PACIFIC

~90% of
production
~85% of 2P
reserves
~90% of
COGEH 2P value
~95% of contingent
resource
~85% of unrisked
prospective
resource
2013 production
~375 mboe/d
2012 2P reserves
1.7 billion boe
RLI ~ 12 years
2012 COGEH
2P value
~ $14 billion
2012 contingent
resource
6.7 billion boe
2012 unrisked
prospective resource
3.1 billion boe
Committed to long-term growth and value creation in core regions

Continuing to high-grade within core regions
October 2013
: NYSE : TLM | TSX : TLM
www.talisman-energy.com
Page 1
2013 PRIORITIES TO DRIVE VALUE CREATION

Live within our means
Set capital spending budgets that can be funded by operating cash flows
Less reliance on asset sales to fund capital program in future years
Maintain strong balance sheet
Focus our capital program
Projects with faster cycle times delivering sustainable cash flow over longer term
Renewal through production optimization, exploitation, bolt-on acquisitions and
exploration
Improve operational performance
Improve cash margins on every barrel and mcf we produce
Better execution of capital projects
Unlock NAV of portfolio
Rationalize North American portfolio
Consider all options in North Sea: develop, JV or divest
Recognize value from long-dated exploration options
ASIA: ONE PILLAR OF OUR TWO CORE AREA MODEL

Talisman has a strong, competitive advantage in each of its two core regions
Valuable set of assets and infrastructure, key relationships, great people and
a proven track record of accomplishment
The value of Asia-Pacific business enhanced as part of larger Talisman
Right size
World-wide scope
Demonstrated ability to execute
Focused and valuable balance to quality North American portfolio

Solid growth potential
High value/margin products
Proven business model
October 2013
Cash flow growth with free cash flow generation
Page 2
OUR FOUR PRIORITIES TO CREATE VALUE

At work in Asia-Pacific
Living within our means

Delivering year-on-year growth in production (8% p.a. from 2008)
Generated cash flow of $1.2B and free cash flow of more than $600M in 2012
Cash flow projected to grow in 2013
Focusing our capital program

Strong regional energy demand growth supporting premium pricing
Stable and attractive fiscal regimes
Multiple value accretive investment options within existing portfolio
Consistently improving operational performance

Top quartile safety performance
Consistent and reliable project execution, i.e.; HST/HSD delivered ahead of schedule and under budget
PM3-CAA production efficiency averaged 97% in 2012
Continue unlocking net asset value (NAV)
Continue to high-grade current portfolio to focus on the best assets (ONWJ sold in Q2)
Capitalizing on tuck-in acquisitions that deliver near-term cash flow/value
Robust business development opportunities
Red Emperor discovery acquired from Premier
TALISMANS HISTORY IN ASIA-PACIFIC

Asia-Pacific part of Talismans history
Some of the major events that shaped our business
150
Corridor
PM-3 CAA
Talisman
Kitan
Jambi Merang
18%
compound
annual growth
120
December, 1992
At midnight, Talisman Energy comes
Into being.
February, 1997
Full construction
commences on Corridor
gas project
90
Production (mboe/d)
60
May, 1993
Entry into Indonesia
through Encor Inc.
acquisition
1994
Acquired interests in
OK Block, Corridor,
and Jambi in
Sumatra through
Bow Valley
acquisition
30
August, 2001
Acquired block PM-3
CAA and a gas
discovery in PNG from
Lundin
November, 2003
Offshore Vietnam gas discovery
in Block 46-Cai Nuoc, adjacent to
the Talisman-operated PM-3 CAA.
1999
Major gas discoveries
at Suban (Suban-3
27mmcf/d of low CO2
gas) and Durian
Mabok-2 (Suban,
58mmcf/d
1998
Corridor Gas Project
commissioned in
October, on budget
averaging 53mmcf/d
in Q4
April, 2011
Jambi Merang
first gas
2H 2010
Joint Timor
Leste/Australia
authorities
approves Kitan
field development
October, 2005
Acquired interests
in Indonesia, in
Australia through
Paladin acquisition,
including Southeast
Sumatra, ONWJ,
Laminaria,
Corallina and Kitan
September, 2003
PM-3 CAA project
completed on schedule
and budget, producing
over 19 mboe/d in Q4
January, 1999
Discovery in Corridor
proves long-term potential
to increase gas sales.
2006
Suban Phase 2
completed,
including two
trains, additional
pipelines and
infrastructure
2009
Executed PNG
gas aggregation
strategy including
acquisitions and
farm-ins to various
licenses
2010
Acquired 25%
interest in
onshore Jambi
Merang PSC
December, 2012
Awarded US$1 billion
production-sharing
contract to develop
and recover oil from
the Kinabalu fields
(offshore Malaysia)
by PETRONAS.
October 2011
First oil from
Kitan in
Australia.
2013
First oil from
HST/HSD
ahead of
schedule and
under budget .
0
1992
October 2013
93
94
95
96
97
98
99
00
01
2002 03
04
05
06
07
08
09
10
11
12
2013
Page 3
ASIA-PACIFIC BALANCED PORTFOLIO DELIVERING

NEAR-TERM VALUE AND SUSTAINABLE GROWTH
Capital summary
HST/HSD
on production
PM3 CAA and Malay Basin

Blocks 45 and 46/07
2012
2013
Development
362
505
Exploration/Appraisal
151
145
Total
513
650
($ million)
Red Emperor and

Nam Con Son
Development & Exploration
Kinabalu and Sabah Basin

Development & Exploration
Papua New Guinea

Gas aggregation and early
liquids
Corridor and South Sumatra

Jambi Merang & OK Block
Tangguh
Progressing train three
sanction
TLM block
Core area
Kitan
Upcoming appraisal well
Other
* Dollar ($) values shown are capital investment for 2013
ASIA-PACIFIC GROWING PRODUCTION AND

CASH FLOW
Steady production growth
Sources and uses of cash
mboe/d
$ million
Liquid
200
2,000
Oil-linked gas
Cash flow
Fixed price gas
Exploration capex
Development capex
~8% p.a
150
1,500
Corridor
developments
100
1,000
PM-3 CAA
Jambi Merang
HST/HSD
Kinabalu
PNG early
liquids
50
500
2008 2009 2010 2011 2012 2013
2016
* Excludes Algeria
October 2013
2008 2009 2010 2011 2012 2013
2016
* Excludes Algeria
Page 4
RAPIDLY GROWING ASIAN ECONOMIES DRIVING

INCREASED ENERGY DEMAND
Southeast Asia GDP 2012 vs. 2020
Southeast Asia gas supply demand balance*
$ billion
bcf/d
800
2012
6% p.a.
15
2020
Confirmed domestic supply

Demand
Supply demand gap
600
10
9 bcf/d
400
4% p.a.
4% p.a.
5
6% p.a.
200
0
Vietnam
Singapore
Malaysia
Indonesia
Source: IHS Global Insight
2010
2015
2020
* Includes Singapore, Malaysia, Vietnam and Indonesia
Population growth, urbanization and rising

living standards driving economic development
in region
Low GDP per capita in Southeast Asia (~10%
of developed economies), indicates significant
headroom for economic growth
2025
Source: Wood Mackenzie
Gas supply gap of 9 bcf/d in 2025

Domestic gas supply is peaking and cannot
keep pace with demand growth
LNG imports are increasingly required to meet
Southeast Asia market demand
GDP growth has shown strong resilience even

in global economic downturn
SIGNIFICANT NEW LNG IS NEEDED TO MEET THE ASIA

SUPPLY CHALLENGE
Sustained growth in both traditional and
new markets underpins LNG demand
growth of 5% p.a. to 2025
Asia-Pacific LNG demand and supply

bcf/d
50
LNG Demand
Committed LNG (Europe)
Estimates of 40 - 60 mtpa (5-8 bcf/d) of

credible U.S. exports by 2025 satisfies
only a portion of Asia LNG demand gap
Committed LNG (North America)

Committed LNG (Other)
40
Committed LNG (Middle East)

Committed LNG (Asia-Pacific)
+18 bcf/d
30
Significant volumes of additional

conventional LNG supply is therefore
required
Asia-Pacific 2025 LNG supply gap by country
Percentage (%)
20
16%
JKT*
China
10
9%
Indonesia
Thailand
50%
7%
Others
Singapore
7%
2010
2015
2020
2025
Source: Wood Mackenzie, BG Group
October 2013
5%
Source: Wood Mackenzie
Malaysia
6%
*Japan, South Korea, Taiwan
Page 5
NEW LNG SUPPLY COSTS OFFER SIGNIFICANT

HEADROOM FOR DOMESTIC GAS PRICES IN ASIA
LNG break-even costs (gas price to generate a 12% project IRR)
$/mmbtu-real terms 2013
20
Long-term LNG contract price equivalent from $80-120/bbl Brent crude in real 2013 terms
15
13.5
10
8.5
9.6
8.5
12.1
11.5
12.7
10.2
4.1
North America Hub

price based model
0
2000-2010*
Ichthys
Exxon
PNG LNG
Prelude FLNG Wheatstone
Gladstone
Sabine Pass
Integrated upstream and liquefaction costs**
Upstream
Liquefaction
Shipping to region
Pipeline
Cost range
W. Canada
Mozambique
Area 4
LNG price range
Roughly $46 billion (nominal) of cost increase announced across 7 projects since 2010
(average 20%) per annum
Applying a weighted average of latest cost estimates yields $3,000/tonne of greenfield capacity,
representing a four fold increase and making legacy LNG contract pricing unsustainable
Project economics for new LNG supply will therefore establish a headroom price for domestic gas in
range of $10-12/mmbtu or higher
Sources: Talisman internal analysis, Wood Mackenzie, PFC Energy. *Weighted average break-even costs of 10 LNG projects started up in 2000-2010 period
**Assumes 10% discount rate. North America costs based on Talisman internal price/cost views.
PROJECT COST INFLATION A GROWING CHALLENGE

LNG Project Unit Costs (Liquefaction Only Nominal)
Per unit cost average doubles

those of the previous decade
Projects taking approximately

one year longer on average to
complete from sanction to first
LNG as compared to last
decade
Recent cost increases are

partially biased by the
influence of Australia-specific
issues but also realized more
broadly across all greenfield
projects
$/tonne
2,700
2,600
Australia
2,500
Non-Australia
2,400
Pluto
Cost Estimate at Sanction
2,300
Gorgon
2,200
2,100
2,000
Angola
Ichthys
1,900
1,800
Snohvit
1,700
1,600
Wheatstone
1,500
DS LNG
1,400
PNG LNG
1,300
GLNG
1,200
1,100
QCLNG
1,000
900
800
700
600
500
400
300
200
APLNG
Peru
Darwin
Atlantic LNG 1
MLNG Tiga
Damietta
OLNG
100
Yemen
Qatargas-4
EG LNG
Sakhalin 2
Tangguh
Year of First LNG Sales
2000
October 2013
2005
2010
2015
Source: Woodmac LNG Tool, company public cost announcements
Page 6
KEY ASSETS UNDERPINNING ASIA-PACIFIC BUSINESS

2013 Cash Flow
2013 Production Profile
($ Millions)
(mboepd)
Corridor & South Sumatra
Corridor & South Sumatra
PM3 & Malay Basin
PM3 & Malay Basin
Vietnam - HST/HSD
Vietnam - HST/HSD
Kinabalu & Sabah Basin

Other NonOp
Kinabalu & Sabah Basin

1
Other NonOp
0
0 10 20 30 40 50 60 70 80
100 200 300 400 500 600
1H 2013 Netbacks
($/boe)
Asia-Pacific business anchored in two core

assets
Indonesia
Corridor provides material stable cash flow and

production
Malaysia
PM3 - top quartile operating performance

delivers material cash flow and production
Vietnam*
Australia
$0
$20
$40
$60
80
Kinabalu set to become third core asset in Asia

Pacific for Talisman
*Includes carry cost recovery
1. OTHER NON OP = KITAN & LAM/COR IN AUSTRALIA, AND TANGGUH IN INDONESIA
INDONESIA KEY OPERATIONS AND ACTIVITIES

TLM block
Oil field
Gas field
Development
ANDAMAN III
JAMBI MERANG
(JM) JOB
Exploration
Corridor and South Sumatra
Ongoing asset development through plant

expansions, drilling and facility optimization
projects
TANGGUH
SOUTH EAST
SUMATRA (SES)
OGAN KOMERING
(OK) JOB
October 2013
Growing Indonesian gas market drives

robust economics
World class natural gas asset producing 1 bcf/d
gross and expected to generate more than $400
million of cash flow for Talisman in 2013
SOUTH
SUMATRA
CORRIDOR
Indonesia Highlights
Tangguh
Offshore gas production delivered into LNG plant
(3.1% working interest) producing 160 mboe/d
gross
Accessing price upside through delivery
substitution and potential renegotiations
Third train development progressing towards
sanction
2013 Capital (US$mm)
~190
2013 Production (mboe/d)
75-77
2013 Cash Flow (US$mm)
~500
Page 7
SOUTH SUMATRA PREMIUM MARKETS, MATERIAL FREE

CASH FLOW GENERATION
Core focus
TLM block
Oil field
Jambi Merang
Gas field
Corridor
Well-established relationships with NOC and

government, generating new opportunities
Material long-term cash generation from Corridor and

Jambi Merang
Low F&D, low opex, realizing high netbacks
Premium pricing in both domestic and export markets
Near-term
Ogan Komering
Reinvestment delivering near-term incremental

production and cash flow
Domestic gas prices continue to rise
The future
Southeast
Sumatra
Expansion potential from existing assets, such as

Suban Train 5, Jambi Merang Phase II
Near infrastructure development
New licences and exploration opportunities
CORRIDOR WORLD CLASS ASSET

Gas sales
pipeline
to Chevron Duri
Sumpal plant
2012: 155 mmcf/d*
2013: 310 mmcf/d*
COPI gas pipeline

3rd party pipeline
Production outlook(1)
mmcfe/d
Gas sales
pipeline
to Singapore
500
Base
Development
400
Gelam plant
85 mmcf/d*
300
Dayung plant
300 mmcf/d*
200
Grissik plant
2012: 310 mmcf/d*
2013: 460 mmcf/d*
100
Sumpal
LTRO
Suban
Dayung
0
2013
Suban plant
780 mmcf/d**
Rawa station
2012: 0 mmcf/d*
2013: 45 mmcf/d*
0
* Gross raw non-cumulative facility capacity
2016
Sources and uses of cash(1)

25
50
75
Km
100
$ million
750
Development capex
Cash flow
**Gross sales non-cumulative facility capacity
1H 2013 field price realization and netback chart
500
$/mcf
3.51
0.81
250
11.30
6.68
0
Realized price
Royalties
Opex/trans.
2013
Netback
(1)
October 2013
2014
2015
2016
Talisman internal estimate
Page 8
CORRIDOR LONG LIFE, PREMIUM PRICES,

OPERATIONAL EXCELLENCE
Premium natural gas pricing:
55% of gas production is realizing liquidslinked pricing
Average $10.65 / mscf (2Q 2013)
Ongoing gas sales agreement price renegotiation potential
Several facility upgrades are nearing

completion
Letang, Tengah and Rawa fields (LTRO)
reactivated and currently producing 30
mmscf/d
Suban gas plant, Corridor PSC
Sumpal Expansion new dehydration train

will double capacity to 310MMscf/d (194
MMscf/d sales)
Increase processing capacity of the Central
Grissik Plant from 310 MMscf/d to 460
MMscf/d and install compression at Dayung
Further potential expansion at Suban to be
appraised in 2014 drilling program, will
deliver significant reserve upside
Grissik Gas Plant
JAMBI MERANG
TLM block
Other block
Oil pipeline
Gas pipeline
Prospect
Palau Gading gas plant, Jambi Merang JOB
Phase 1
Principle customers are Chevron (at $10/mmbtu) and

PLN (at $5.4/mmbtu)
2D & 3D seismic programs ongoing and further

exploration wells scheduled
Jabung PSC
Phase 2 Expansion
Jambi Merang PSC
Project sanction expected early 2014
Pre-sanction phase
Corridor PSC
October 2013
FEED underway
Confirming additional reserves
Facilities expansion project anticipated to deliver:
Additional 60 mmscf/d of sales gas
Up to 2 mboe/d of additional condensate
LPG production of up to 8 mboe/d
Robust regional gas market delivers sound economics
Page 9
TANGGUH LNG
TLM block
Muturi block
Muturi Area 5
LNG plant
Berau A
Wiriagar
Muturi Area 4
Offshore gas production feeding liquefaction

plant, Talisman holds 3.1% equity interest
On stream in 2009 with 325 cargoes delivered
by 2Q 2013
Two LNG Trains with maximum capacity of
7.6 Mtpa
Proven reserves of ~14 TCF, 80% already
contracted
Berau B
Potential price upside associated with cargo

diversions and future sales contracts
Main market is East Asia with anchor buyers
in China, South Korea, Japan and US
Expansion project
Addition of third LNG train to increase total
capacity to more than 11 Mtpa
40% of cargoes from the new train will be
allocated to domestic markets
Tangguah LNG plant
MALAYSIA KEY OPERATIONS AND ACTIVITIES

TLM block
Malaysia Highlights
Oil field
MALAY BASIN
Exploration
(PM-3 CAA, VN
46/2 & 7, VN 45)
Gas field
Development
Malay Basin
Exploration
Enhance core production area through step-out

exploration of stratigraphic oil & gas targets
PM-3 CAA
Malaysia
Peninsular
Malaysia
SABAH
Exploration
Sabah
KINABALU
Development
PM-3 CAA
Development
Sarawak
Multi-facility offshore oil and gas production

Delivering gas to peninsular Malaysia and
mainland Vietnam
Significant reserves upside through further
drilling and facilities investment
Sabah
4-well program in 2013 / 2014
Kinabalu
October 2013
Assumed operatorship in late 2012, currently

focused on delivering steady operations
4 well program in 2013/14, followed by full scale
redevelopment
2013 Capital (US$ mm)
~240
~41
2013 Cash Flow (US$ mm)
300-350
Page 10
PM-3 CAA AND MALAY BASIN OPERATIONS

EXCELLENCE WITH EXCITING UPSIDE
Core focus
Remove 51 and PM 325 and PM 302
TLM block
Oil field
Long life production and cash flow
Gaining recognition as an operator of choice through technical

excellence
Leveraging regional knowledge and infrastructure to exploit

new opportunities
Gas field
Block 45
Near-term
Block
46/07
Vietnam
Maintain production levels through infill drilling and well

interventions
Continuous operations improvement
Stratigraphic play derisked through development

drilling in PM-3 CAA
Secure PM-3 license extension
Malaysia
PM3CAA
30
60
The future
Km
120
90
Step out exploitation of proven stratigraphic oil and gas play

within PM-3 CAA
Exploration of Blocks 45 and 46/07
Further new business opportunities around PM-3 infrastructure
Additional development may utilize nearby Talisman

infrastructure
3.7 billion boe yet to find in Malay Basin
PM-3 CAA HIGH QUALITY OPERATING BUSINESS

TLM block
Block 46-02
Production outlook
Oil field
mboe/d
Gas field
50
Vietnam
Base
Development
40
30
FSO
Block 46
Cai Nuoc
Northern
Fields
Complex
PM-3 CAA
Southern
Fields
Complex
20
10
FSO
Gas Export
to Vietnam
Malaysia
0
2013
Gas Export
to Malaysia
0
12
18
Km
24
Cashflow
Development capex
Exploration capex
400
300
Drilled 3 of 6 wells during 2013 in a multi-year program
Netbacks, exceeding $30/boe

in 2012
PSC environment delivers cost effective investment

opportunities
Infill exploration targets and near-term facilities

enhancements
Delivering year-on-year free cash flow
0
2013
October 2013
2014
2015
2016
2016
Top quartile uptime performance (97% production

efficiency in 2012)
200
100
2015

$ million
2014
Page 11
MALAYSIA/VIETNAM PM-3 CAA FACTS AND FIGURES

PM3 is Talismans largest operated
asset worldwide
Current gross production 100,000 boe/d
(60% gas, 40% oil)
A complex of 12 fields produced through
11 installations and 2 FSOs
300 reservoirs
140 development wells drilled
2002- 2012
Cumulative production 154 mmbls
oil/615 bcf gas at end of 2012
2P reserves 345 mmboe at Jan 2013
Track record of monetizing near field
discoveries in less than 2 years
1720m/ 5650ft Gross Hydrocarbon Column
KINABALU AND SABAH BASIN

TLM block
Core focus
Oil field
Gas field
SSGP pipeline
Proposed plant
Material acreage position in a prolific and proven

hydrocarbon province anchored by the Kinabalu
PSC
Accessing low-cost discovered oil and
associated gas reserves with upside potential
Extensive infrastructure enhances exploration
monetization optionality
Gas monetization available via SSGP to Bintulu
SB309
Near-term
Production growth through infill drilling and
facility upgrades at Kinabalu
SB310
Kinabalu
The future
GIS confirming
Malaysia
where pipeline
starts
0
20
October 2013
40
60
Km
80
Significant exploration upside through shallow

oil prospects near infrastructure and large
deeper gas potential across SB 309/310
Page 12
KINABALU IMMEDIATE PRODUCTION,

SIGNIFICANT GROWTH
Production outlook
mboe/d
30
20
10
2013
Kinabalu platform
2014
2015
2016

$ million
Progressive PSC terms granted for

production, investment and improved
oil recovery
Significant near-term production and cash
flow growth
Ongoing facilities optimization and upgrades
300
250
Cash flow
Development capex
200
150
100
50
0
Commenced 4 well infill program 2013/2014
2013
2014
2015
2016
SABAH EXPLORATION
Exploration program underway
TLM block
Grafit-1 first exploration well in SB310 gas

discovery with development potential as part of
gas aggregation strategy
Oil field
Gas field
Gas pipeline
Similar geological profile with established

Kinabalu porosities and permeability
Oil pipeline
Proposed plant
Material exploration upside from identified oil

prospects and large scale gas potential across
the blocks
Awarded in 2009, comprised of Blocks SB309
and SB310
Identified significant unrisked resource in
diverse plays to be delineated through ongoing
exploration drilling program
Planning to utilize existing infrastructure as
potential export route via Kinabalu
October 2013
Page 13
VIETNAM KEY OPERATIONS AND ACTIVITIES

TLM block
(Vietnam)
TLM block
(Malaysia)
Oil field
Gas field
Development
Exploration
Vietnam
Blocks 15-2/01 TGT
Vietnam 2013 Activities

Block 15-2/01 HST/HSD
On production ahead of schedule and
under budget
Nam Con Son
Bolt-on acquisition in Block 07/03
supports short-term liquids potential
underpinning long-term growth options
Blocks 133 & 134
Block 45 & 46-07

Drilled 3 exploration wells, one discovery
Technical work ongoing
Focus on gas aggregation and building on
our expertise
Blocks 15-2/01 HST/HSD
Blocks 45 & 46-07

Blocks 05-2/10
Blocks 07/03
Blocks 135 &
136/03
2013 Capital (US$mm)
Block 46/02
Song Doc
~140
~9
2013 Cash flow (US$mm)
180-220
HST/HSD ON STREAM AHEAD OF SCHEDULE

AND UNDER BUDGET
TLM block
Multiphase
production
Gas lift
Water injection
Gas export
Oil field
HSD
HST
HST/HSD production* quick ramp up after early first oil

mboe/d
15
12
9
6
FPSO
3
0
May
TGT
June
July
*Talisman share including carried cost recovery
Gas to Bach Ho Field
Vietnam
15-2/01
Km
12 16
$ million
Cash flow
300
Development capex
HST/HSD project in Vietnam delivered first oil May 2013

ahead of schedule and under budget
Delivering near-term peak production of

~12 mboe/d with rapid investment payback of 19 months
Maximizes use of existing export and processing
infrastructure
Significant potential upside at HSD, assessing through early
production history
October 2013
200
100
2013
2014
2015
2016
Page 14
RED EMPEROR AND THE NAM CON SON

Block 135 & Block 136/03
TLM block
Oil field
Significant near field inventory of low risk prospects
Gas field
Two well program in 2014, complementing Block 07/03 activity
Pipeline
Oil discovery
Leverage significant project efficiencies with proximity to potential

Red Emperor development
133
5.2/10
Potential for gas aggregation in addition to planned oil project
134
Block 133 & 134 Ongoing Exploration

Continue de-risking material portfolio of prospects
135
De-risk prospects in Block 05-2/10 with adjacent Block 133 & 134
drilling
Red Emperor
07/03
136
RE2-N
Proposed 2014 Drilling
CRD-4X
Red Emperor
RE2
Block 07/03 Acquisition
RE1
RE3
RE4
REA
Exploration and development

synergies with adjoining blocks
Discovered oil resource with upside
potential, appraisal drilling underway
RE5
Early commercialization and potential

infrastructure hub for the area
Block 07/03
Block136
PNG CAPITALISING ON PROLIFIC RESOURCE

POTENTIAL IN A LOW F&D COST ENVIRONMENT
TLM block
Discoveries
Proposed
2013/2014 wells*
Currently drilling
Tingu-1
Ketu
Stanley
Elevala
Ubuntu
Kupio
Core area focus
Dominant position in prolific hydrocarbon basin

with up to 20 tcf undiscovered petroleum initially
in place (unrisked)
Secured strategic partners, Mitsubishi and

Santos, bringing funding and LNG expertise
Early liquids project provides near-term cash flow

and material value upside
Onshore shallow drilling supports low F&D, and

high margins into the Asian LNG market
Weimang
Puk Puk
Kimu
Langia
Near-term
Douglas
High-grading land position to maintain quality and

focus
Executing early liquids projects at Stanley and

Elevala/Ketu
The future
Aggregating material gas resource
Developing gas monetization optionality
* Further wells subject to JV approval
October 2013
Page 15
PNG LIQUIDS AND LOCAL GAS SALES YIELDING

EARLY CASH AND MATERIAL VALUE
Resources early liquids and local gas sales
Resources gas aggregation to LNG
mmboe, gross (TLM average working interest ~42%)
tcf, gross (TLM average working interest ~43%)
200
10
Liquids - upside
Unrisked prospective liquids
Liquids
Risked prospective liquids
Gas - local sales
150
Unrisked prospective gas

Risked prospective gas
Gas - LNG
6
100
4
50
Discovered - Stanley,
Elevala/Ketu
2013-2015
Discovered
2012 finding cost of $1.80/bbl

Potential for $0.5 billion net in project
NPV and generating cash flow of up to
$100 million net per annum
2013-2015
Joint venture carry (by both Mitsubishi

Corporation and Santos) and early
condensate recovery scheme providing
funding over mid-term
Gas aggregation project on track
ASIA-PACIFIC GROWING PRODUCTION AND

CASH FLOW
Steady production growth*
Sources and uses of cash*
mboe/d
$ million
Liquid
200
2,000
Oil-linked gas
Cash flow
Fixed price gas
Exploration capex
Development capex
~8% p.a
150
1,500
Corridor
developments
100
1,000
PM-3 CAA
Jambi Merang
HST/HSD
Kinabalu
PNG early
liquids
50
500
2008 2009 2010 2011 2012 2013
2016
* Excludes Algeria
October 2013
2008 2009 2010 2011 2012 2013
2016
* Excludes Algeria
Page 16
OUR FOUR PRIORITIES TO CREATE VALUE

At work in Asia-Pacific
Living within our means

Delivering year-on-year growth in production (8% p.a. from 2008)
Generated cash flow of $1.2B and free cash flow of more than $600M in 2012
Cash flow projected to grow in 2013
Focusing our capital program

Strong regional energy demand growth supporting premium pricing
Stable and attractive fiscal regimes
Multiple value accretive investment options within existing portfolio
Consistently improving operational performance

Top quartile safety performance
Consistent and reliable project execution, i.e.; HST/HSD delivered ahead of schedule and under budget
PM3-CAA production efficiency averaged 97% in 2012
Continue unlocking net asset value (NAV)
Continue to high-grade current portfolio to focus on the best assets (ONWJ sold in Q2)
Capitalizing on tuck-in acquisitions that deliver near-term cash flow/value
Robust business development opportunities
October 2013
Red Emperor discovery acquired from Premier
Page 17
Advisories
Forward-Looking Information
This presentation contains information that constitutes forward-looking information or forward-looking
statements (collectively forward-looking information) within the meaning of applicable securities
legislation. This forward-looking information includes, among others, statements regarding: business
strategy, priorities and plans; expected production, regionally and by asset; expected cash flow, regionally
and by asset; expected capital spending; expected netbacks; expected free cash flow; expected drilling;
expected Southeast Asia GDP growth, gas supply-demand balance and LNG demand and supply;
expected upgrades at Corridor; expectation of Phase 2 at Jambi Merang; expected expansion at
Tangguh; expected exploration and development activities in Talismans Asia-Pacific region; expected
extension of the PM-3 license and related development activities; expected exploration upside in the
Sabah basin; potential or planned gas aggregation and targeted liquids and local gas sales in PNG;
targeted gas monetization options in PNG; potential project NPV and cash flow in PNG; and other
expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible
future events, conditions, results of operations or performance. The company priorities disclosed in this
presentation are objectives only and their achievement cannot be guaranteed.
The factors or assumptions on which the forward-looking information is based include: assumptions
inherent in current guidance; projected capital investment levels; the flexibility of capital spending plans
and the associated sources of funding; the successful and timely implementation of capital projects; the
continuation of tax, royalty and regulatory regimes; ability to obtain regulatory and partner approval;
commodity price and cost assumptions; and other risks and uncertainties described in the filings made by
the Company with securities regulatory authorities. The Company believes the material factors,
expectations and assumptions reflected in the forward-looking information are reasonable but no
assurance can be given that these factors, expectations and assumptions will prove to be correct.
Forward-looking information for periods past 2013 assumes escalating commodity prices. Closing of any
transactions will be subject to receipt of all necessary regulatory approvals and completion of definitive
agreements.
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 presentation. 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; risks and uncertainties involving geology of oil
and gas deposits; risks associated with project management, project delays and/or cost overruns;
uncertainty related to securing sufficient egress and access to markets; 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, including decommissioning liabilities; risks related
to strategic and capital allocation decisions, including 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, interest rates and tax or royalty rates; the outcome and effects of any future
acquisitions and dispositions; health, safety, security and environmental risks, including risks related to
the possibility of major accidents; environmental regulatory and compliance risks, including with respect
to greenhouse gases and hydraulic fracturing; uncertainties as to the availability and cost of credit and
other financing and changes in capital markets; risks in conducting foreign operations (for example, civil,
political and fiscal instability and corruption); risks related to the attraction, retention and development of
personnel; changes in general economic and business conditions; the possibility that government
October 2013
Page 18
policies, regulations or laws may change or governmental approvals may be delayed or withheld; and
results of the Company's risk mitigation strategies, including insurance and any hedging activities.
The foregoing list of risk factors is not exhaustive. Additional information on these and other factors which
could affect the Companys operations or financial results or strategy are included in Talismans most
recent Annual Information Form. In addition, information is available in the Companys other reports on
file with Canadian securities regulatory authorities and the United States Securities and Exchange
Commission. Forward-looking information is based on the estimates and opinions of the Companys
management at the time the information is presented. The Company assumes no obligation to update
forward-looking information should circumstances or managements estimates or opinions change, except
as required by law.
Oil and Gas Information
Reserves
National Instrument 51-101 ("NI 51-101") of the Canadian Securities Administrators imposes oil and gas
disclosure standards for Canadian public companies engaged in oil and gas activities. Talisman has
obtained an exemption from Canadian securities regulatory authorities to permit it to provide certain
disclosures in accordance with the US disclosure standards, in addition to the disclosure mandated by NI
51-101, in order to provide for comparability of oil and gas disclosure with that provided by US and other
international issuers. Accordingly, in addition to the reserves data and certain other oil and gas
information included in this presentation which is provided in accordance with NI 51-101, there is data
and information provided in accordance with US disclosure standards.
A separate exemption granted to Talisman also permits it to disclose internally evaluated reserves data.
Any reserves and resources data contained in this presentation reflects Talismans estimates of its
reserves and resources. While Talisman annually obtains an independent audit of a portion of its proved
and probable reserves, no independent qualified reserves evaluator or auditor was involved in the
preparation of the reserves and resources data disclosed in this presentation.In this presentation, the
estimates of reserves and future net revenue for individual properties may not reflect the same
confidence level as estimates of reserves and future net revenue for all properties, due to the effects of
aggregation.
Production and Reserves Volumes

Unless otherwise stated, production volumes and reserves estimates are stated on a Company interest
basis prior to the deduction of royalties and similar payments. In the US, net production volumes and
reserve estimates are reported after the deduction of these amounts. US readers may refer to the table
headed Continuity of Net Proved Reserves in Talismans most recent Annual Information Form for a
statement of Talismans net production volumes and reserves. The use of the word gross in this
presentation means a 100% interest prior to the deduction of royalties and similar payments.
Resources, In-place Estimates and EURs
In this presentation, Talisman also discloses contingent resources, prospective resources, PIIP and EUR
as at February 28, 2013. Where not otherwise indicated, in this presentation, the contingent resources
provided are 2C and the prospective resources are unrisked best estimates. Contingent resources are
defined as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from
known accumulations using established technology or technology under development, but which are not
currently considered to be commercially recoverable due to one or more contingencies. The
October 2013
Page 19
contingencies that prevent the resources from being classified as reserves are: lack of gas sales contract;
additional testing; production and performance appraisal activities; development time frame too far in the
future; demonstration of economic viability; facilities and egress; access to equipment and services;
hydraulic fracturing technology; commodity prices and regulatory approvals. There is no certainty that it
will be commercially viable to produce any portion of the resources. In addition to these contingencies
and uncertainties the development of commerciality of resources is also subject to a number of risk
factors, as discussed more fully above.
Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially
recoverable from undiscovered accumulations by application of future development projects. Prospective
resources have both an associated chance of discovery and a chance of development. There is no
certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will
be commercially viable to produce any portion of the resources. Unrisked prospective resources are not
risked for change of development or chance of discovery. If a discovery is made, there is no certainty
that it will be developed or, if it is developed, there is no certainty as to the timing of such development.
In this presentation risked prospective resources have been risked for chance of discovery but have not
been risked for chance of development. If a discovery is made, there is no certainty that it will be
developed or, if it is developed, there is no certainty as to the timing of such development. Estimated
ultimate recovery (EUR) is a term commonly used in the oil and gas industry. EUR is an estimate, on a
given date, of the quantity of oil and gas that is potentially recoverable, plus those quantities already
produced. There is no certainty that it will be commercially viable to produce any portion of the EUR
amount that is contained herein. PIIP is defined as petroleum initially in place and is that quantity of
petroleum that is estimated to exist originally in naturally occurring accumulations. It is the total quantity of
petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to
production. PIIP estimates may contain all resource classifications, both discovered and undiscovered.
There is no certainty that any portion of the resources will be discovered. If discovered, there is no
certainty that it will be commercially viable to produce any portion of the resources.
Non-Core Assets
In this presentation, all references to core and non-core assets and properties align with the
companys current public disclosure regarding its assets and properties.
BOE Conversion
Throughout this presentation, barrels of oil equivalent (boe) are calculated at a conversion rate of six
thousand cubic feet (mcf) of natural gas for one barrel of oil (bbl). This presentation also includes
references to mcf equivalents (mcfes) which are calculated at a conversion rate of one barrel of oil to six
thousand cubic feet of gas. Boes and Mcfes may be misleading, particularly if used in isolation. A boe
conversion ratio of 6mcf:1bbl and an mcfe conversion ratio of 1bbl:6mcf are based on an energy
equivalence conversion method primarily applicable at the burner tip and do not represent a value
equivalency at the well head.
Netbacks
Talisman also discloses netbacks in this presentation. Netbacks per boe are calculated by deducting from
the sales price associated royalties, operating and transportation costs.
US Dollars and IFRS
Dollar amounts are presented in US dollars, except where otherwise indicated. Financial information prior
to January 1, 2011 was prepared in accordance with Canadian generally accepted accounting principles
(CGAAP) then applicable to publically accountable enterprises. The financial information for 2011, 2012
October 2013
Page 20
and 2013 is presented in accordance with International Financial Reporting Standards (IFRS). Both IFRS
and CGAAP may differ from generally accepted accounting principles in the US.
Forecasted Cash Flow and Forecasted Free Cash Flow:
This presentation also contains discussions of anticipated cash flow and anticipated free cash flow both
on an aggregate and per share basis. The material assumptions used in determining estimates of cash
flow are: the anticipated production volumes; estimates of realized sales prices, which are in turn driven
by benchmark prices, quality differentials and the impact of exchange rates; estimated royalty rates;
estimated operating expenses; estimated transportation expenses; estimated general and administrative
expenses; estimated interest expense, including the level of capitalized interest; and the anticipated
amount of cash income tax and petroleum revenue tax. The amount of is inherently difficult to predict.
Anticipated production volumes are, in turn, based on the midpoint of the estimated production range and
do not reflect the impact of any potential asset dispositions or acquisitions. The completion of any
contemplated asset acquisitions or dispositions is contingent on various factors including favourable
market conditions, the ability of the Company to negotiate acceptable terms of sale and receipt of any
required approvals for such acquisitions or dispositions.
In addition to the assumptions that underpin forecasted cash flow, forecasted free cash flow also includes
assumptions around capital investments and financing activities.
Non-GAAP Financial Measures
Included in this presentation are references to financial measures used in the oil and gas industry such as
free cash flow, cash flow and capital expenditure. These terms are not defined by IFRS. Consequently,
these are referred to as non-GAAP measures. Talismans reported results of such measures may not be
comparable to similarly titled measures reported by other companies. Free Cash Flow is used by
management to assess the amount of funds available for reinvestment or to reduce debt levels or return
to shareholders. Free cash flow is the net of cash provided by operating, investing and financing
activities before the repayment or issuance of long-term debt. Cash Flow represents net income before
exploration costs, DD&A, impairment, deferred taxes and other non-cash expenses. Cash flow is used by
the Company to assess operating results between years and between peer companies using 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
IFRS as an indicator of the Companys performance or liquidity. Capital expenditure (or capex or cash
capital spend) is calculated by adjusting the capital expenditure per the financial statements for
exploration costs that were expensed as incurred. Exploration capex is the combined total of exploration
expenditures capitalized as part of the exploration and evaluations assets in the Consolidated Balance
Sheet plus the exploration expenses on a before-tax basis from the Consolidated Statement of
Income.Development capex is the costs incurred in the development and producing phase and recorded
as part of property, plant and equipment in the Consolidated Financial statements.
October 2013
Page 21
Notes
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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:

David Mann
Vice President, Corporate & Investor Communications
(403) 237.1196
TALISMAN ENERGY INC.

Suite 2000, 888 - 3rd Street S.W.
Calgary, AB T2P 5C5
Phone: (403) 237.1234
Fax: (403) 237.1902
Email: tlm@talisman-energy.com
Website: www.talisman-energy.com

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ASIA-PACIFIC OVERVIEW

Other areas considering

2013 production guidance 375 mboe/d

1,700 mmboe 2P reserves*

*All reserves and resources converted at 6 mcf:1 boe

TWO CORE REGIONS: AMERICAS AND ASIA-PACIFIC

Committed to long-term growth and value creation in core regions

: NYSE : TLM | TSX : TLM

2013 PRIORITIES TO DRIVE VALUE CREATION

ASIA: ONE PILLAR OF OUR TWO CORE AREA MODEL

Focused and valuable balance to quality North American portfolio

Cash flow growth with free cash flow generation

: NYSE : TLM | TSX : TLM

OUR FOUR PRIORITIES TO CREATE VALUE

Living within our means

Focusing our capital program

Consistently improving operational performance

Continue unlocking net asset value (NAV)

Capitalizing on tuck-in acquisitions that deliver near-term cash flow/value

Robust business development opportunities

Red Emperor discovery acquired from Premier

TALISMANS HISTORY IN ASIA-PACIFIC

: NYSE : TLM | TSX : TLM

ASIA-PACIFIC BALANCED PORTFOLIO DELIVERING

PM3 CAA and Malay Basin

Red Emperor and

Kinabalu and Sabah Basin

Papua New Guinea

Corridor and South Sumatra

* Dollar ($) values shown are capital investment for 2013

ASIA-PACIFIC GROWING PRODUCTION AND

Sources and uses of cash

Fixed price gas

2008 2009 2010 2011 2012 2013

2008 2009 2010 2011 2012 2013

: NYSE : TLM | TSX : TLM

RAPIDLY GROWING ASIAN ECONOMIES DRIVING

Southeast Asia gas supply demand balance*

Confirmed domestic supply

Source: IHS Global Insight

* Includes Singapore, Malaysia, Vietnam and Indonesia

Population growth, urbanization and rising

Gas supply gap of 9 bcf/d in 2025

GDP growth has shown strong resilience even

SIGNIFICANT NEW LNG IS NEEDED TO MEET THE ASIA

Asia-Pacific LNG demand and supply

Estimates of 40 - 60 mtpa (5-8 bcf/d) of

Committed LNG (North America)

Committed LNG (Middle East)

Significant volumes of additional

Source: Wood Mackenzie, BG Group

: NYSE : TLM | TSX : TLM

*Japan, South Korea, Taiwan

NEW LNG SUPPLY COSTS OFFER SIGNIFICANT

North America Hub

Prelude FLNG Wheatstone

Integrated upstream and liquefaction costs**

LNG price range

PROJECT COST INFLATION A GROWING CHALLENGE

Per unit cost average doubles

Projects taking approximately

Recent cost increases are

Cost Estimate at Sanction

Year of First LNG Sales