Talisman Energy Posts Strong Financial and Operating Results With Cash Flow Up 6% to $1.3 Billion

CALGARY, ALBERTA, Apr 29 (MARKET WIRE) --
Talisman Energy Inc. (TSX: TLM) (NYSE: TLM) reported its operating and
financial results for the first quarter of 2009.

- Cash flow (1) during the quarter was $1.3 billion, an increase of 6%
from a year ago. Cash flow from continuing operations (1) was also $1.3
billion, up 14% from the same period a year ago.

- Net income was $455 million, down 2% from a year earlier, because gains
on asset sales were offset by lower realized prices, higher depletion,
depreciation and amortization (DD&A) and dry hole costs.

- Earnings from continuing operations (1) were $303 million, compared to
$429 million a year ago.

- Production averaged 450,000 boe/d, 7% above the first quarter of 2008,
despite the sale of non-core assets over the past year. Production from
continuing operations averaged 436,000 boe/d, 11% above the same quarter
last year.

- Net debt (1) at quarter end was $3.6 billion, down from $3.9 billion at
December 31, 2008.

- Netbacks were down 46% from a year earlier, averaging $24.48/boe.

- During the quarter, Talisman announced first gas production from the
Rev Field in Norway and first oil production from the Northern Fields
project in Southeast Asia.

- Talisman's unconventional natural gas strategy in North America is on
track with 22 gross wells drilled during the quarter in the Marcellus and
Montney.

- Talisman announced an agreement to sell non-strategic assets in
Saskatchewan for $720 million.

- Talisman entered into an agreement for the sale of its Trinidad assets
for approximately $380 million.

- The Company announced the appointment of Paul Smith as Executive
Vice-President, International Operations (West) and Richard Herbert as
Executive Vice-President, Exploration.

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

"Talisman's financial and operating performance in the quarter was
strong," said John A. Manzoni, President and CEO. "We continue to
strengthen the Company's balance sheet, which gives us financial
flexibility; we are driving down costs and improving efficiency; we are
bringing development projects on stream; and, delivering on strategy
implementation.

"It was a great quarter from an operations standpoint. Production from
continuing operations was up 11% year over year. UK production increased
by 28%, due in part to improvements in operating efficiency. Production
in Scandinavia rose 26%, with contributions from the Rev Field and
development drilling success. Production in Southeast Asia was 13% higher
with increased sales from Corridor.

"The first quarter exceeded our internal projections for production and
gives us a strong start to delivering our production target for the year.
We are still early in the year and the guidance we provided in January of
430,000 boe/d, with downside of no greater than 5%, remains valid. As
usual, production in the second and third quarters will be lower due to
maintenance shutdowns.

"Cash generation was also strong during the quarter, up 6% to $1.3
billion, despite low commodity prices. The strong cash flow results in
large part from the hedging program put in place during the last 12
months. We have hedges in place over the remainder of the year, although
we expect lower cash contributions from these. Cash flow also benefited
from higher production volumes and lower taxes.

"With higher cash flow and proceeds from non-core asset sales, we have
improved upon our already strong financial position. Talisman's long-term
debt is now at $3.6 billion (net of cash) versus $3.9 billion at year end
and we have paid off our bank lines.

"Net income was down 2% compared to a year ago, totaling $455 million,
largely due to lower realized prices, higher DD&A and dry hole costs,
partly offset by gains on non-core asset sales. Excluding unusual items,
earnings from continuing operations were $303 million, compared to $429
million a year earlier.

"Unit operating costs are down 6% versus a year ago. In the UK, unit
costs are down 27%, due to production gains and improved efficiency,
exchange rate movements and the disposal of some higher cost properties.
In North America, underlying costs are also reducing, although the
quarter included some one-off costs, which mask this reduction. We have a
number of internal cost initiatives underway across all our businesses
and we expect further reductions.

"The strategy is proving robust to lower commodity prices. We are making
good progress on non-core asset sales. Including the Saskatchewan and
Trinidad sales, we will generate proceeds of approximately $2.2 billion
from non-core assets with associated volumes of about 25,000 boe/d.

"First oil from the Northern Fields oil development was achieved on
schedule during the quarter. We announced first natural gas volumes in
July of last year and expect to commission the dry gas facilities by
mid-year. In Norway, we announced first production from the Rev Field in
January. First production from Affleck in the UK is expected in the third
quarter and we continue to progress projects at Auk, Burghley and Yme in
the North Sea and Block 15-2/01, and the Corridor expansion in Southeast
Asia.

"We spent approximately $250 million on unconventional gas plays in North
America during the quarter. In the Marcellus Shale, we drilled four wells
during the quarter, with each well performing better than the previous
one. Improved drilling efficiency should now enable us to complete the
2009 program with a maximum of three rigs instead of five.

"We drilled 11 gross wells in the Montney Core where Talisman is
achieving top tier performance on drilling and completion costs. We are
encouraged by the results of ongoing pilot work in the Montney Shale and
have drilled our fourth unconventional pilot well in Quebec.

"In international exploration, we drilled a successful sidetrack on Block
15-2/01 in Vietnam. Talisman has made a discovery with the Godwin well in
the Central Graben in the UK. We are also encouraged by a new discovery
in Norway, which is preparing to test. Early indications are promising in
Colombia; however, we still have a couple of months before the well is
completed and we are drilling a well on Block 64 in Peru. Results from
our first well in the Kurdistan region of northern Iraq were also
encouraging, but inconclusive due to operational difficulties in
completing the well. And we have also added new blocks in Peru and
offshore Vietnam.

"In summary, it was a strong quarter, both operationally and financially.
The Company is in excellent financial shape and we are making good
progress on our strategy for profitable long-term growth."

Financial Results

March 31 Three Months Ended
2009 2008
Cash flow ($ million) 1,309 1,232
---------------------
Cash flow per share (1) 1.29 1.21
---------------------
Cash flow from continuing operations ($ million) 1,295 1,136
---------------------

---------------------
Net income ($ million) 455 466
---------------------
Net income per share 0.45 0.46
---------------------

---------------------
Earnings from continuing operations ($ million) 303 429
---------------------
Earnings from continuing operations per share (2) 0.30 0.42
---------------------

---------------------
Average shares outstanding (million) 1,015 1,019

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

Cash flow increased 6% year over year to $1.3 billion, as higher
production volumes and cash received on commodity hedges ($436 million
after tax) offset a 46% drop in netbacks.

Net income was 2% below last year. Income for the quarter included a $519
million after tax gain on the sale of non-core assets.

Total DD&A expense was $733 million, an increase of $226 million compared
to the first quarter of 2008. The increase is primarily from downward
reserve revisions as a result of low oil prices, increased production and
capital expenditures.

Dry hole expense was $246 million in the quarter compared to $65 million
a year ago. This includes $59 million for exploration wells in the North
Sea and $46 million in Vietnam. Dry hole expense totalled $128 million in
North America, where writeoffs occurred due to changes in natural gas
price forecasts and a number of unsuccessful deep wells drilled last year.

Total tax expense fell by $400 million compared to the first quarter of
2008 with lower netbacks, higher operating, dry hole and DD&A expenses.

Earnings from continuing operations were $303 million compared to $429
million a year earlier. Earnings from continuing operations adjust for
significant one-time events and non-operational items such as the
mark-to-market effect of changes in share prices on stock-based
compensation expense and mark-to-market changes of commodity derivatives.
Talisman continued to strengthen its balance sheet. Net debt at March 31
was $3.6 billion down from $3.9 billion at December 31, 2008.

The Company spent $1,099 million on exploration and development during
the quarter (including $106 million of non-cash costs). This includes
$390 million in North America (primarily unconventional natural gas) and
$361 million in the North Sea, including the Rev and Yme projects, as
well as development drilling at Auk North, Claymore, Clyde, Gyda and
Brage. Spending in Southeast Asia was $277 million, including
capitalization of the Floating Storage Offloading (FSO) vessel as part of
the Northern Fields startup.

Production

March 31 Three Months Ended
2009 2008
-----------------------
Oil and liquids (bbls/d) 234,876 216,625
-----------------------
Natural gas (mmcf/d) 1,291 1,216
-----------------------
Total (mboe/d) 450 419
-----------------------

-----------------------
Continuing operations (mboe/d) 436 393
-----------------------

Production from continuing operations averaged 436,000 boe/d, an
increase of 11% over last year. UK oil and liquids production increased
25%, in part due to steps taken to improve operating efficiency.
Production in Scandinavia increased 26% with the startup of the Rev Field
and new wells on production at Brage and better base production at Varg.
Natural gas production in Southeast Asia increased 22%, with a 25%
increase in Indonesia as sales to West Java continue to grow.

Netbacks

March 31 Three Months Ended
$/boe 2009 2008
-----------------------
Sales 44.17 73.01
-----------------------
Hedging gain (loss) - (0.26)
-----------------------
Royalties 5.93 12.87
-----------------------
Transportation 1.40 1.14
-----------------------
Operating expenses 12.36 13.08
-----------------------
Netback 24.48 45.66
-----------------------

-----------------------
Oil & liquids netback ($/bbl) 29.68 58.76
-----------------------
Natural gas netback ($/mcf) 3.14 5.28
-----------------------

Netbacks in the first quarter averaged $24.48/boe, down 46% from a
year ago and 6% below the previous quarter. WTI oil prices averaged
US$43/bbl, down 56% from the first quarter of 2008. NYMEX natural gas
prices averaged US$4.86/mmbtu, a decrease of 36%.

Royalty expenses fell $62 million compared to last year, but rates
increased slightly due to increased sales in Algeria, which has a
relatively high royalty rate. Royalty rates in North America and
Southeast Asia were lower.

Unit operating costs were down 6% compared to the first quarter of 2008.
The biggest drop was in the UK, where unit costs were down 27%, due in
part to production efficiencies, with the remainder coming from the sale
of higher cost properties and foreign exchange rates. In Norway, unit
operating costs are down 24%, largely due to higher volumes and the
startup of the Rev Field. North American unit costs have increased due to
one-time charges associated with the Company's agreement with Hallwood
Partners, higher property taxes and increased processing fees associated
with additional volumes through third party infrastructure. In Southeast
Asia, costs were up with increased maintenance expenses in
Malaysia/Vietnam.

The Company may choose to designate derivative instruments as hedges for
accounting purposes. To date, the Company has elected not to designate
any commodity price derivative contracts entered into since January 1,
2007 as hedges.

North America

In North America, production averaged 179,000 boe/d for the first
quarter, down 2% from a year ago. Production from continuing operations
was relatively unchanged from the same period in 2008. Oil and liquids
volumes were down 3%, due largely to natural declines. Natural gas
volumes increased 1% with increases in unconventional areas (Appalachia,
Outer Foothills, Montney), as well as in Monkman and the Northern Alberta
Foothills, which more than offset declines in other conventional areas.

Capital spending included $250 million in unconventional areas for
development and piloting activities, plus $140 million on other
properties. This other spending was comprised mainly of carry-in capital
from the 2008 capital program, with some excellent results. A well in
Monkman, BC tested at 40 mmcf/d raw gas and a Greater Ojay, BC well
tested at 23 mmcf/d raw gas.

Talisman participated in 61 gross (32.4 net) wells in the quarter, with
53 gross wells in unconventional plays.

In the Marcellus Shale, the Company continues to focus on Pennsylvania.
Talisman drilled four gross wells (four net) in the quarter and has now
moved to pad drilling. Two rigs are currently operating and the Company
now expects it will be able to complete its 36 well program for the year
with a maximum of three rigs instead of five as originally planned.

Each well is performing better than the previous well. The latest
producing well in the program achieved rates of 4.5 mmcfe/d over an
initial 30-day period, with the most recent pad well on target to cost
US$4.3 million (C$ 5.2 million) to drill and complete. These costs are
down more than 25% from the 2008 average and drilling cycle times have
been reduced by 50% compared to the first wells in the program.

In the Montney Core, Talisman drilled 11 gross (9.9 net) wells in the
quarter out of a planned 35 well program. The most recent five horizontal
wells have averaged initial 30-day production rates of over 3 mmcfe/d.
Talisman has made significant strides in reducing costs in the Montney. A
recent well was drilled and completed at a cost of $3.8 million, which is
top tier performance and a 50% reduction from the Company's average 2008
drilling costs in the area. Talisman is also achieving best in class
completion costs in the area.

Talisman continues to progress piloting in the Montney Shale, with seven
gross (four net) wells drilled in the quarter. Results are encouraging
and the Company recently completed its first horizontal shale well.
Talisman is evaluating egress options for the area and plans to build
gathering and processing facilities later this year.

In Quebec, the Company is currently drilling the fourth well in the
earning phase of a four-well program. Completion and testing of the last
two wells is expected to take place later this year. The program is
focused on gathering test and core data to evaluate the potential for
commercial gas production.

During the quarter, Talisman announced the sale of its southeast
Saskatchewan and Daniels County, Montana assets for approximately $720
million. The sale is expected to close in June 2009.

UK

Production from continuing operations in the UK averaged 108,000 boe/d
over the quarter, up 28% from the same period in 2008, primarily due to
increased production at Tweedsmuir, which was ramping up in the first
quarter last year, and a full quarter's production from the
Montrose-Arbroath complex, which was shutdown in the first quarter of
2008.

UK development expenditures during the quarter were $131 million, which
included drilling in the Auk North, Claymore and Clyde fields.

During the quarter, the Company continued to progress development at Auk
North, with three wells being batch drilled. The non-operated Affleck
development is due onstream at the start of the third quarter.
Engineering work at the Auk South redevelopment is advancing.

The Tweedsmuir water injection plant came onstream on March 11 and the
plant was tested at its capacity of 30,000 bbls/d of water.

Scandinavia

Production from continuing operations averaged 43,000 boe/d, up 26% from
the same period in 2008. The production increase over 2008 was due to
commencement of production from the Rev Field and new wells brought
onstream at Brage and better base production at Varg.

The Company spent $115 million on development, which included the Rev and
Yme projects and development drilling in the Yme, Gyda, Veslefrikk and
Brage fields.

The Rev Field came on production on January 24. The field is expected to
produce at a plateau rate of 100 mmcf/d of natural gas and 6,000 bbls/d
of condensate and natural gas liquids from two subsea wells. A third
producing well is expected to be brought onstream later in 2009.

During the quarter, Talisman reached an agreement to sell a 10% equity
interest in the Yme Field. Construction at the Yme field redevelopment
project continues and first oil is now scheduled for around the middle of
2010. The Company also reached an agreement to sell a 40% interest in
PL301 in Norway.

Southeast Asia

In Southeast Asia, production averaged 101,000 boe/d, 13% higher than the
same period last year. Indonesian production averaged 63,000 boe/d, 19%
higher than the same period last year, primarily due to increased gas
takes in Corridor. Production from Malaysia averaged 27,000 boe/d, 22%
lower than the previous period, mainly due to a planned shutdown at PM-3
CAA to complete final tie-ins prior to the startup of oil production from
the Northern Fields and natural declines in PM 305/314.

In Indonesia, Corridor produced 296 mmcf/d during the quarter, an
increase of 63 mmcf/d over the same period last year, mainly due to
increased West Java gas sales.

First gas was introduced into the Tangguh Train 1 facility on January 27,
marking the startup of the Liquefied Natural Gas (LNG) processing
facilities, with first commercial shipments scheduled for the second
quarter.

In PM-3 CAA in Malaysia/Vietnam, the FSO vessel was installed in early
March 2009 at the Northern Fields development. First oil production began
on March 25 at 6,000 bbls/d (gross) from the initial two oil wells and
production is expected to reach 40,000-50,000 boe/d (gross sales) by
early 2010. Commissioning of dry gas facilities is scheduled for mid-2009.

Gas production from Northern Fields averaged 92 mmcf/d (gross sales gas)
during the quarter. To date, 20 wells (five oil, 13 gas and two
injectors) have been drilled and completed in Northern Fields with a 100%
success rate. The Company plans to drill up to 16 development wells in
the Northern Fields in 2009, with an additional 13 planned for 2010.

In the Southern Fields in PM-3 CAA, the first of the six-well Bunga Kekwa
infill program spudded in March and was completed in mid-April, while at
PM-305, an infill well drilled in the first quarter came onstream and is
currently producing 1,300 bbls/d (gross).

Production in Vietnam averaged 8,000 bbls/d as Song Doc came onstream in
November 2008. In Block 15-2/01, pre-engineering work is underway with
project sanction of the Hai Su Trang development and the Hai Su Den Early
Production Scheme expected later in the year.

Production in Australia was 3,200 bbls/d, 60% higher than the same period
last year, primarily due to installation of the new flowline at Corallina
and reinstatement of the Lam-2 well, which were completed in mid-March. A
field development plan for the Kitan discovery is being prepared and is
scheduled to be submitted in May.

Other Areas

In North Africa, production from continuing operations averaged 15,000
boe/d, down 8% from the same period in 2008, mainly due to OPEC
production restrictions and natural declines. In Algeria, new production
and injection wells were tied in as part of the Greater MLN Phase 2
project. The Phase 2 expanded gas injection facilities are being
commissioned. The El Merk project in Algeria was sanctioned during the
quarter. The Company participated in two wells, with a third well
drilling over the quarter end.

Talisman entered into an agreement for the sale of its Trinidad and
Tobago assets for approximately $380 million.

International Exploration

International exploration spending in the first quarter was approximately
$247 million.

Southeast Asia

In September 2008, Talisman entered into a farm-in agreement in Blocks
133 and 134 offshore Vietnam with a 38% working interest. The amended
licence was approved by the Government of Vietnam in February 2009 and
represents the Company's first step into the Nam Con Son Basin. The
Company continues the appraisal of the Hai Su Den discovery in Block
15-2/01 in the Cuu Long Basin, with further wells planned later in the
year.

Kurdistan Region of Northern Iraq

In the Kurdistan region of northern Iraq, the Sarqala-1 well has been
suspended. A rig move is underway to the Kurdamir location. In addition,
seismic processing of Block K39 data is ongoing.

South America

The Situche Central-3X appraisal well on Block 64 in Peru spud in late
December 2008 and is currently drilling. Talisman was awarded an interest
in Block 158 in April.

In Colombia, the Huron-1 well exploration on the Niscota Block continued
drilling through the quarter. The Company expects drilling to be
completed in the second quarter. In the El Caucho Blocks, a 3D seismic
program is underway in El Sancy. Planning is underway to drill an
exploration well in the El Eden Block late in 2009. Talisman was
successful in acquiring interests in Block 09 in late January.

North Sea

In the UK North Sea, Talisman made a modest oil discovery at Godwin in
Block 22/17 and the highly productive reservoir tested at 7,500 bbls/d.
The Company is reviewing options to develop the Godwin discovery via the
Montrose-Arbroath facilities. The rig has completed operations at Godwin
and has spud the Shaw exploration well on Block 22/22a.

Talisman is encouraged by a recent discovery in Norway and is preparing
to test. Subsequent to the quarter end, the Canon well was plugged and
abandoned.

Talisman Energy Inc. is a global, diversified, upstream oil and gas
company, headquartered in Canada. Talisman's three main operating areas
are North America, the North Sea and Southeast Asia. The Company also has
a portfolio of international exploration opportunities. Talisman is
committed to conducting business safely, in a socially and
environmentally responsible manner, and is included in the Dow Jones
Sustainability (North America) Index. Talisman is listed on the Toronto
and New York Stock Exchanges under the symbol TLM. Please visit our
website at www.talisman-energy.com.

Forward-Looking Information

This news release 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:

- planned maintenance shutdowns and expected reductions in production
volumes;

- expected reduction in cash contributions from hedges;

- expected cost reductions;

- expected timing of facilities commissioning at Northern Fields;

- planned drilling at Northern Fields, Cuu Long, Niscota Block and EI
Eden Block;

- expected first production from Affleck in the UK;

- expected completion of the 2009 Marcellus Shale drilling program;

- plans to build gathering and processing facilities in the Montney Shale;

- expected completion and testing of wells in Quebec;

- expected timing of closing of dispositions in southeast Saskatchewan,
Daniels County, Montana and Trinidad and Tobago;

- expected production rates at the Rev Field and at Northern Fields;

- expected timing of first oil at the Yme Field;

- expected timing of the first commercial shipment from Tangguh;

- expected timing of project sanctioning in Vietnam;

- expected submission of a field development plan for the Kitan
discovery; and

- other expectations, beliefs, plans, goals, objectives, assumptions,
information and statements about possible future events, conditions,
results of operations or performance.

With the exception of the timing of closing dispositions in southeast
Saskatchewan, Daniels County, Montana and Trinidad and Tobago, each of
the forward-looking information listed above are based on Talisman's 2009
capital program 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
planned 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 of 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 news release. 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;

- 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;

- 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;

- 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;

- the possibility that government policies 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 Company's
operations or financial results are included in the Company's most recent
Annual Information Form. 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.

Oil and Gas Information

Throughout this news release, the calculation of barrels of oil
equivalent (boe) is at a conversion rate of six thousand cubic feet (mcf)
of natural gas for one barrel of oil (bbl) and the calculation of mcfe is
at a conversion rate of one 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
mcfe 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 news
release. 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.

Canadian Dollars and GAAP

Dollar amounts are presented in Canadian dollars unless otherwise
indicated. Unless otherwise indicated, financial information is presented
in accordance with Canadian generally accepted accounting principles that
may differ from generally accepted accounting principles in the US.
Talisman's Consolidated Financial Statements as at and for the year ended
December 31, 2008, which were filed with Canadian and US securities
authorities on March 5, 2009, contain information concerning differences
between Canadian and US generally accepted accounting principles.

Non-GAAP Financial Measures

Included in this news release are references to financial measures
commonly used in the oil and gas industry, such as cash flow, cash flow
per share, cash flow from continuing operations, 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, cash flow from continuing
operations, 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.

($ million) Three months ended
---------------------

March 31, 2009 2008
----------------------------------------------------------------------------
Cash provided by operating activities 1,086 1,312
Changes in non-cash working capital 223 (80)
----------------------------------------------------------------------------
Cash flow 1,309 1,232
Cash provided by discontinued operations (1) (14) (96)
----------------------------------------------------------------------------
Cash flow from continuing operations 1,295 1,136
----------------------------------------------------------------------------
Cash flow per share 1.29 1.21
----------------------------------------------------------------------------
Cash flow from continuing operations 1.28 1.11
----------------------------------------------------------------------------

(1) Comparative restated for operations classified as discontinued
subsequent to March 31, 2008.

Earnings from continuing operations are calculated by adjusting the
Company's net income per the financial statements, for certain items of a
non-operational nature, on an after-tax basis. The Company uses this
information to evaluate performance of core operational activities on a
comparable basis between periods. Earnings from continuing operations per
share are earnings from continuing operations divided by the average
number of common shares outstanding during the period. A reconciliation
of net income to earnings from continuing operations follows.

($ million, except per share amounts)

Three months ended
March 31, 2009 2008
----------------------------------------------------------------------------
Net income 455 466
----------------------------------------------------------------------------
Operating income from discontinued operations 20 56
Gain (loss) on disposition of discontinued operations 519 (2)
----------------------------------------------------------------------------
Net income from discontinued operations (1) 539 54
----------------------------------------------------------------------------
Net income (loss) from continuing operations (84) 412
Mark-to-market changes in commodity derivatives (2)
(tax adjusted) 387 51
Stock-based compensation expense (recovery) (3)
(tax adjusted) 23 (7)
Future tax recovery of unrealized foreign exchange
gains (losses) on foreign denominated debt (4) (23) (27)
----------------------------------------------------------------------------
Earnings from continuing operations (5) 303 429
----------------------------------------------------------------------------

Per share (5) 0.30 0.42
----------------------------------------------------------------------------

(1) Comparatives restated for operations classified as discontinued
subsequent to March 31, 2008.
(2) Changes in mark-to-market commodity derivatives relate to the change in
the period of the mark-to-market value of the Company's outstanding
commodity derivatives that are classified as held-for-trading financial
instruments.
(3) Stock-based compensation expense relates principally to the
mark-to-market value of the Company's outstanding stock options and cash
units at March 31. The Company's stock-based compensation expense is
based principally on the difference between the Company's share price
and its stock options or cash units exercise price.
(4) Tax adjustments reflect future taxes relating to unrealized foreign
exchange gains and losses associated with the impact of fluctuations
in the Canadian dollar on foreign denominated debt.
(5) This is a non-GAAP measure.

This calculation does not reflect differing accounting policies and
conventions between companies. All amounts are reported on an after-tax
basis.

Net debt is calculated by adjusting the Company's long-term debt per the
financial statements for bank indebtedness, and cash and cash
equivalents. The Company uses this information to assess its true debt
position since cash could potentially be used to pay down long-term debt.

($ million) Three months ended
---------------------

March 31, 2009 2008
----------------------------------------------------------------------------
Long-term debt 3,717 3,961
Bank indebtedness 22 81
Cash and cash equivalents (181) (93)
----------------------------------------------------------------------------
Net Debt 3,558 3,949
----------------------------------------------------------------------------

Talisman Energy Inc. Highlights (unaudited)

Three months ended
March 31
2009 2008
----------------------------------------------------------------------------
Financial
(millions of C$ unless otherwise stated)
Cash flow (1) 1,309 1,232
Net income 455
466Exploration and development expenditures 1,099 1,013
Per common share (C$)
Cash flow (1) 1.29 1.21
Net income 0.45 0.46
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Production
(daily average)
Oil and liquids (bbls/d)
North America 40,758 40,089
UK 102,688 84,013
Scandinavia 34,874 33,335
Southeast Asia 37,341 37,226
Other 19,215 21,962
----------------------------------------------------------------------------
Total oil and liquids 234,876 216,625
----------------------------------------------------------------------------
Natural gas (mmcf/d)
North America 829 850
UK 30 35
Scandinavia 50 19
Southeast Asia 382 312
----------------------------------------------------------------------------
Total natural gas 1,291 1,216
----------------------------------------------------------------------------
Total mboe/d (2) 450 419
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Prices (3)
Oil and liquids (C$/bbl)
North America 42.65 80.79
UK 56.36 97.33
Scandinavia 56.50 99.30
Southeast Asia 52.69 99.66
Other 59.04 102.48
----------------------------------------------------------------------------
Total oil and liquids 53.64 95.49
----------------------------------------------------------------------------
Natural gas (C$/mcf)
North America 5.51 7.86
UK 5.93 8.52
Scandinavia 9.88 5.78
Southeast Asia 5.35 9.07
----------------------------------------------------------------------------
Total natural gas 5.64 8.16
----------------------------------------------------------------------------
Total (C$/boe) (2) 44.17 73.01
----------------------------------------------------------------------------
----------------------------------------------------------------------------

1 Cash flow and cash flow per share are non-GAAP measures.
2 Barrels of oil equivalent (boe) is calculated at a conversion rate of six
thousand cubic feet (mcf) of natural gas for one barrel of oil.
3 Prices are before hedging.
Includes the results from continuing and discontinued operations.

Talisman Energy Inc.
Consolidated Balance Sheets (unaudited)
March 31 December 31
(millions of C$) 2009 2008
----------------------------------------------------------------------------
(restated)
Assets
Current
Cash and cash equivalents 181 93
Accounts receivable 2,075 2,434
Inventories 148 181
Prepaid expenses 32 16
Assets of discontinued operations 30 204
----------------------------------------------------------------------------
2,466 2,928
----------------------------------------------------------------------------
Other assets 259 235
Goodwill 1,308 1,264
Property, plant and equipment 19,386 19,005
Assets of discontinued operations 888 843
----------------------------------------------------------------------------
21,841 21,347
----------------------------------------------------------------------------
Total assets 24,307 24,275
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Liabilities
Current
Bank indebtedness 22 81
Accounts payable and accrued liabilities 1,797 1,916
Income and other taxes payable 278 468
Future income taxes 201 300
Liabilities of discontinued operations 14 53
----------------------------------------------------------------------------
2,312 2,818
----------------------------------------------------------------------------

Deferred credits 56 51
Asset retirement obligations 2,055 1,998
Other long-term obligations 313 173
Long-term debt 3,717 3,961
Future income taxes 3,982 4,032
Liabilities of discontinued operations 81 92
----------------------------------------------------------------------------
10,204 10,307
----------------------------------------------------------------------------

Shareholders' equity
Common shares, no par value
Authorized: unlimited Issued and outstanding:
2009 - 1,015 million (December 2008 - 1,015 million) 2,373 2,372
Contributed surplus 96 84
Retained earnings 9,421 8,966
Accumulated other comprehensive loss (99) (272)
----------------------------------------------------------------------------
11,791 11,150
----------------------------------------------------------------------------
Total liabilities and shareholders' equity 24,307 24,275
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Prior period balances have been restated to reflect the financial position
of discontinued operations.

Talisman Energy Inc.
Consolidated Statements of Income
(unaudited)
Three months ended
(millions of C$) March 31
2009 2008
----------------------------------------------------------------------------
(restated)
Revenue
Gross sales 1,840 2,345
Hedging loss - (10)
----------------------------------------------------------------------------
Gross sales, net of hedging 1,840 2,335
Less royalties 298 360
----------------------------------------------------------------------------
Net sales 1,542 1,975
Other 34 25
----------------------------------------------------------------------------
Total revenue 1,576 2,000
----------------------------------------------------------------------------

Expenses
Operating 521 429
Transportation 57 43
General and administrative 81 64
Depreciation, depletion and amortization 733 507
Dry hole 246 65
Exploration 68 56
Interest on long-term debt 45 44
Stock-based compensation (recovery) 33 (10)
(Gain) loss on held-for-trading financial
instruments (73) 68
Other, net 11 (16)
----------------------------------------------------------------------------
Total expenses 1,722 1,250
----------------------------------------------------------------------------
Income (loss) from continuing operations
before taxes (146)
750----------------------------------------------------------------------------
Taxes
Current income tax 128 235
Future income tax (recovery) (204) 56
Petroleum revenue tax 14 47
----------------------------------------------------------------------------
(62) 338
----------------------------------------------------------------------------
Net income (loss) from continuing
operations (84) 412
----------------------------------------------------------------------------
Net income from discontinued operations 539 54
----------------------------------------------------------------------------
Net income 455 466
----------------------------------------------------------------------------

Per common share (C$):
Net income (loss) from continuing operations (0.08) 0.40
Diluted net income (loss) from continuing operations (0.08) 0.40
Net income from discontinued operations 0.53 0.06
Diluted net income from discontinued operations 0.53 0.05
Net income 0.45 0.46
Diluted net income 0.45 0.45
----------------------------------------------------------------------------
Average number of common shares outstanding (millions) 1,015 1,019
Diluted number of common shares outstanding (millions) 1,015 1,036
----------------------------------------------------------------------------
Prior period balances have been restated to reflect the results of
discontinued operations.

Talisman Energy Inc.
Consolidated Statements of Cash Flows
(unaudited)
Three months ended
March 31
(millions of C$) 2009 2008
----------------------------------------------------------------------------
(restated)
Operating
Net income (loss) from continuing operations (84) 412
Items not involving cash 1,311 668
Exploration 68 56
----------------------------------------------------------------------------
1,295 1,136
Changes in non-cash working capital (223) 80
----------------------------------------------------------------------------
Cash provided by continuing operations 1,072 1,216
Cash provided by discontinued operations 14 96
----------------------------------------------------------------------------
Cash provided by operating activities 1,086 1,312
----------------------------------------------------------------------------

Investing
Capital expenditures
Exploration, development and other (941) (967)
Property acquisitions (28) (97)
Proceeds of resource property dispositions 33 -
Changes in non-cash working capital (257) 99
Discontinued operations, net of capital expenditures 584 (56)
----------------------------------------------------------------------------
Cash used in investing activities (609) (1,021)
----------------------------------------------------------------------------

Financing
Long-term debt repaid (690) (1,167)
Long-term debt issued 370 538
Deferred credits and other 4 9
Common shares issued 1 -
Changes in non-cash working capital 1 1
----------------------------------------------------------------------------
Cash used in financing activities (314) (619)
----------------------------------------------------------------------------
Effect of translation on foreign currency cash and cash
equivalents (16) 9
----------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents 147 (319)
Cash and cash equivalents, net of bank indebtedness,
beginning of period 12 521
----------------------------------------------------------------------------
Cash and cash equivalents net of bank indebtedness, end
of period 159 202
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Cash and cash equivalents 181 217
Bank indebtedness 22 15
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash and cash equivalents net of bank indebtedness, end
of period 159 202
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Prior period balances have been restated to reflect the cash flows of
discontinued operations.

Segmented Information
Three months ended March 31

North America (1) UK
--------------------------------------
(millions of Canadian dollars) 2009 2008 2009 2008
----------------------------------------------------------------------------
Revenue
Gross sales 540 845 529 798
Hedging - - - (10)
Royalties 84 153 1 4
----------------------------------------------------------------------------
Net sales 456 692 528 784
Other 26 18 7 5
----------------------------------------------------------------------------
Total revenue 482 710 535 789
----------------------------------------------------------------------------
Segmented expenses
Operating 150 124 211 216
Transportation 12 16 13 8
DD&A 271 252 235 144
Dry hole 128 20 31 21
Exploration 23 26 2 2
Other 4 (3) 4 7
----------------------------------------------------------------------------
Total segmented expenses 588 435 496 398
----------------------------------------------------------------------------
Segmented income before taxes (106) 275 39 391
----------------------------------------------------------------------------
Non-segmented expenses
General and administrative
Interest
Stock-based compensation
Currency translation
(Gain)/Loss on held-for-trading
financial instruments
----------------------------------------------------------------------------
Total non-segmented expenses
----------------------------------------------------------------------------
Income from continuing
operations before taxes
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Capital expenditures
Exploration 205 175 46 50
Development 105 225 131 124
Midstream 35 6 - -
----------------------------------------------------------------------------
Exploration and development 345 406 177 174
Property acquisitions
Proceeds on dispositions
Other non-segmented
----------------------------------------------------------------------------
Net capital expenditures (4)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Property, plant and equipment 8,697 8,703 4,693 4,738
Goodwill 223 223 308 306
Other 816 840 316 253
Discontinued operations 550 534 - 165
----------------------------------------------------------------------------
Segmented assets 10,286 10,300 5,317 5,462
Non-segmented assets
----------------------------------------------------------------------------
Total assets (5)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Scandinavia Southeast Asia (2)
--------------------------------------
(millions of Canadian dollars) 2009 2008 2009 2008
----------------------------------------------------------------------------
Revenue
Gross sales 242 203 390 511
Hedging - - - -
Royalties - - 145 203
----------------------------------------------------------------------------
Net sales 242 203 245 308
Other 1 2 - -
----------------------------------------------------------------------------
Total revenue 243 205 245 308
----------------------------------------------------------------------------
Segmented expenses
Operating 74 56 68 33
Transportation 12 9 17 8
DD&A 103 63 109 48
Dry hole 28 24 51 (1)
Exploration 6 7 15 7
Other 1 - (2) 2
----------------------------------------------------------------------------
Total segmented expenses 224 159 258 97
----------------------------------------------------------------------------
Segmented income before taxes 19 46 (13) 211
----------------------------------------------------------------------------
Non-segmented expenses
General and administrative
Interest
Stock-based compensation
Currency translation
(Gain)/Loss on held-for-trading
financial instruments
----------------------------------------------------------------------------
Total non-segmented expenses
----------------------------------------------------------------------------
Income from continuing
operations before taxes
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Capital expenditures
Exploration 59 37 81 85
Development 115 140 196 86
Midstream - - - -
----------------------------------------------------------------------------
Exploration and development 174 177 277 171
Property acquisitions
Proceeds on dispositions
Other non-segmented
----------------------------------------------------------------------------
Net capital expenditures (4)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Property, plant and equipment 1,919 1,745 3,189 2,984
Goodwill 640 602 133 129
Other 133 154 370 304
Discontinued operations 104 93 - -
----------------------------------------------------------------------------
Segmented assets 2,796 2,594 3,692 3,417
Non-segmented assets
----------------------------------------------------------------------------
Total assets (5)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Other (3) Total
----------------------------------------
(millions of Canadian dollars) 2009 2008 2009 2008
----------------------------------------------------------------------------
Revenue
Gross sales 139 (12) 1,840 2,345
Hedging - - - (10)
Royalties 68 - 298 360
----------------------------------------------------------------------------
Net sales 71 (12) 1,542 1,975
Other - - 34 25
----------------------------------------------------------------------------
Total revenue 71 (12) 1,576 2,000
----------------------------------------------------------------------------
Segmented expenses
Operating 18 - 521 429
Transportation 3 2 57 43
DD&A 15 - 733 507
Dry hole 8 1 246 65
Exploration 22 14 68 56
Other 7 (5) 14 1
----------------------------------------------------------------------------
Total segmented expenses 73 12 1,639 1,101
----------------------------------------------------------------------------
Segmented income before taxes (2) (24) (63) 899
----------------------------------------------------------------------------
Non-segmented expenses
General and administrative 81 64
Interest 45 44
Stock-based compensation 33 (10)
Currency translation (3) (17)
(Gain)/Loss on held-for-trading
financial instruments (73) 68
----------------------------------------------------------------------------
Total non-segmented expenses 83 149
----------------------------------------------------------------------------
Income from continuing
operations before taxes (146) 750
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Capital expenditures
Exploration 61 18 452 365
Development 3 11 550 586
Midstream - - 35 6
----------------------------------------------------------------------------
Exploration and development 64 29 1,037 957
Property acquisitions 66 111
Proceeds on dispositions (33) -
Other non-segmented 10 9
----------------------------------------------------------------------------
Net capital expenditures (4) 1,080 1,077
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Property, plant and equipment 888 835 19,386 19,005
Goodwill 4 4 1,308 1,264
Other 165 138 1,800 1,689
Discontinued operations 264 255 918 1,047
----------------------------------------------------------------------------
Segmented assets 1,321 1,232 23,412 23,005
Non-segmented assets 895 1,270
----------------------------------------------------------------------------
Total assets (5) 24,307 24,275
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1) North America 2009 2008
----------------------------------------------------------------------------
Canada 447 663
US 35 47
----------------------------------------------------------------------------
Total revenue 482 710
----------------------------------------------------------------------------
Canada 7,880 7,902
US 817 801
----------------------------------------------------------------------------
Property, plant and equipment (5) 8,697 8,703
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(2) Southeast Asia 2009 2008
----------------------------------------------------------------------------
Indonesia 138 202
Malaysia 60 96
Vietnam 36 11
Australia 11 (1)
----------------------------------------------------------------------------
Total revenue 245 308
----------------------------------------------------------------------------Indo
esia 1,060 990
Malaysia 1,374 1,277
Vietnam 491 470
Australia 264 247
----------------------------------------------------------------------------
Property, plant and equipment (5) 3,189 2,984
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(3) Other 2009 2008
----------------------------------------------------------------------------
Algeria 68 -
Tunisia 3 (12)
----------------------------------------------------------------------------
Total revenue 71 (12)
----------------------------------------------------------------------------
Algeria 215 221
Tunisia 24 21
Other 649 593
----------------------------------------------------------------------------
Property, plant and equipment (5) 888 835
----------------------------------------------------------------------------
----------------------------------------------------------------------------
4 Excluding corporate acquisitions.
5 Current year represents balances as at March 31, prior year represents
balances as at December 31.

Contacts:
Talisman Energy Inc. - Media and General Inquiries
David Mann, Vice-President,
Corporate & Investor Communications
(403) 237-1196
(403) 237-1210 (FAX)
Email: tlm@talisman-energy.com
Website: www.talisman-energy.com

Talisman Energy Inc. - Shareholder and Investor Inquiries
Christopher J. LeGallais, Vice-President,
Investor Relations
(403) 237-1957
(403) 237-1210 (FAX)
Email: tlm@talisman-energy.com
Website: www.talisman-energy.com

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