Talisman Energy Reports $838 Million Cash Flow in Third Quarter
Adds 170,000 Acres of Land in Pennsylvania Marcellus & Montney Shale

Expanded Exploration Position in Papua New GuineaCALGARY, ALBERTA--(Marketwire - Nov. 3, 2009) - Talisman Energy Inc. (TSX:TLM) (NYSE:TLM) reported its operating and financial results for the third quarter of 2009.

- Cash flow(1) during the quarter was $838 million, a decrease from $1.7 billion a year ago, primarily due to lower prices. Year-to-date cash flow was $3 billion.

- Net income was $30 million, down from $1.4 billion a year earlier, also driven by lower commodity prices and the impact of prior year hedging gains.

- Earnings from continuing operations were $155 million, compared to $125 million in the second quarter and $654 million in the third quarter of 2008.

- Production averaged 401,000 boe/d, 9% below the third quarter of 2008. Year-to-date, production from continuing operations averaged 412,000 boe/d, 2% above last year.

- Netbacks were down 52% from a year earlier, averaging $27.16/boe, with both oil and natural gas prices significantly lower due to the global economic slowdown.

- Net debt(1) at quarter end was $1.9 billion, down from $3.9 billion at December 31, 2008.

- The Company has added over 170,000 net acres of high quality land in the Pennsylvania Marcellus and Montney shale plays, investing approximately $570 million, the majority of it subsequent to September 30.

- Production from the Pennsylvania Marcellus shale play was over 50 mmcf/d at the end of October. A total of 31 gross wells have been drilled year-to-date and a third rig has been added, with plans to move to six rigs by year end.

- The Company intends to move segments of its Montney shale play into commercial development early next year.

- In Southeast Asia, the Northern Fields dry gas system was fully commissioned and 30 successful development wells have been drilled year-to-date.

- Talisman drilled two successful appraisal sidetrack wells in the Shaw oil discovery in the North Sea and successfully appraised the Situche discovery in Peru.

- Talisman has completed a number of transactions towards expanding its exploration position in Papua New Guinea.

- Talisman declared a semi-annual dividend of 11.25 cents per share, payable on December 31, 2009 to shareholders of record at the close of business on December 11.

(1) The terms "cash flow", "earnings from continuing operations" and "net debt" are non-GAAP measures. Please see the advisories and reconciliations elsewhere in this news release.

"The Company made significant advances in strategy implementation during the quarter," said John A. Manzoni, President and Chief Executive Officer. "We have added substantial amounts of high quality unconventional acreage in North America. In Southeast Asia, we have taken our first steps towards building a material onshore natural gas position in Papua New Guinea.

"We continue to be very excited by results from our unconventional gas programs, particularly in the Pennsylvania Marcellus, where we will increase to six rigs toward year end. Production is currently over 50 mmcf/d and, on average, our expected ultimate recovery estimate has increased to 3.5 bcf per well. We are drilling and completing wells at US$4.3 million per well.

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