REG-Talisman Energy Inc. Talisman Energy Completes $1.5 Billion North Sea Transaction with Sinopec

Tue Dec 18, 2012 2:00am EST

* Reuters is not responsible for the content in this press release.

CALGARY, Alberta--(Business Wire)--

Talisman Energy Inc. (Talisman) (TSX:TLM) (NYSE:TLM) today announced the
completion of its joint venture transaction with Addax Petroleum UK Limited
(APUK), an indirect wholly-owned subsidiary of China Petrochemical Corporation
(Sinopec Group) following receipt of government and regulatory approval. 

"We are very pleased to be partnering with Sinopec in the UK North Sea," said
Hal Kvisle, President and CEO of Talisman Energy Inc. "This transaction supports
a number of Talisman`s key priorities. The proceeds will be used to strengthen
our balance sheet, fund our global capital program and give us the financial
flexibility to invest in future opportunities. Sinopec will now fund 49% of the
UK capital program, allowing us to increase overall investment in the assets,
which will lead to improved operational performance and a stronger UK North Sea
business. We look forward to working with Sinopec in the years ahead." 

The completion follows the original announcement of the transaction in July this
year. Sinopec Group has acquired a 49% equity interest in Talisman`s UK North
Sea business, Talisman Energy (UK) Limited (TEUK), for $1.5 billion. Talisman
will continue to hold 51% of the joint venture company. The UK North Sea will be
a smaller part of Talisman`s overall portfolio, but remains an important part of
its North Sea business. 

The focus of the joint venture will be to continue investment in asset integrity
and improve ongoing operating performance as well as accelerating infill
drilling, unlocking additional infrastructure-led exploration opportunities and
executing major projects, thereby extending field life and deferring

Talisman Energy (UK) Limited will be renamed Talisman Sinopec Energy UK Limited.


Notes to Editors

Sinopec Group has acquired 49% of the shares of TEUK for $1.5 billion, before
adjustments for working capital and interest, creating an incorporated joint
venture in which Talisman will continue to hold 51% of the shares. This will
proportionately reduce Talisman`s share of capital spending, production and
abandonment liabilities for its UK business. 

Talisman Sinopec Energy UK Limited will operate the assets, and Sinopec Group
will appoint select personnel into key positions within the organization,
strengthening an already strong team. The joint venture company is based in
Aberdeen, Scotland and employs 564 full-time employees, with approximately 1,950
core contractors. 

About Talisman in the UK

Talisman entered the North Sea in 1994 and today holds operated and non-operated
interests in 46 fields, and operates 11 offshore installations and an onshore
terminal. The portfolio includes opportunities for infill wells, project
developments and exploration. 

About Addax Petroleum

Addax Petroleum Corporation ("Addax Petroleum") is an international oil and gas
exploration and production company, founded in 1994, and acquired in 2009 by
Sinopec International Exploration and Production Corporation (SIPC), a
wholly-owned subsidiary of Sinopec Group. Addax Petroleum holds a number of
producing assets and exploration and development properties in West Africa and
the Kurdistan Region of Iraq, and, through APUK, is expanding its activities
into the North Sea. Further information about Addax Petroleum is available at

About Sinopec Group

China Petrochemical Corporation (Sinopec Group) is China`s largest, and one of
the world`s largest integrated energy and petrochemical companies, with business
scope across the entire oil & gas value chain. The operations cover exploration
and development of resources, storage and transportation of oil and gas,
refining and petrochemical production, and sales of refined products in
Australasia, Central Asia, the Middle East, Africa, North America and South
America. In 2011, the Sinopec Group ranked 5th among the Fortune Global 500
companies. Further information about Sinopec group is available at

About Talisman Energy Inc.

Talisman Energy Inc. is a global upstream oil and gas company, headquartered in
Canada. Talisman has three main operating areas: the Americas (North America and
Colombia), Southeast Asia and the North Sea, with an active exploration program
across all three. 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 


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:
business strategy, priorities and plans; planned use of proceeds from the
closing of the transaction; expected proportionate reduction in capital
spending, production and abandonment liabilities by Talisman; planned investment
increase over the next several years, collectively by Talisman and Sinopec, in
the UK and resulting planned infill drilling, infrastructure-led exploration and
execution of major projects; expected operational performance improvements,
extension in field life and deferral of decommissioning; and other expectations,
beliefs, plans, goals, objectives, assumptions, information and statements about
possible future events, conditions, results of operations or performance. 

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 Talisman with
securities regulatory authorities. Talisman 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 2012 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 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; uncertainty related to securing sufficient egress and markets to meet
shale gas production; 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 on the ability of the counterparties to the Talisman'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 Talisman'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 Talisman's operations or financial
results or strategy are included in Talisman's most recent Annual Information
Form. In addition, information is available in Talisman's 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 Talisman's management at the time the information is presented.
Talisman assumes no obligation to update forward-looking information should
circumstances or management's estimates or opinions change, except as required
by law. 

Dollar amounts are presented in US dollars.

 For media enquiries or further information, please contact:                           
 Talisman Sinopec Energy UK Limited                                                    
 Jill Moir                                                                             
 UK Corporate Affairs & Communications Manager                                         
 Phone: 01224 501087                                                                   
 Media and General Inquiries                      Shareholder and Investor Inquiries   
 Phoebe Buckland                                  Lyle McLeod, Vice-President          
 External Communications                          Investor Relations                   
 Talisman Energy Inc.                             Talisman Energy Inc.                 
 Phone: 403-237-1536                              Phone: 403-237-1020                  
 E-mail:            E-mail:  

Talisman Energy Inc. 

Copyright Business Wire 2012
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