Talisman Energy Completes $1.5 Billion North Sea Transaction

Talisman Energy Completes $1.5 Billion North Sea Transaction With
CALGARY, ALBERTA -- (Marketwire) -- 12/17/12 -- 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
"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 decommissioning.  
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 www.talisman-energy.com. 
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.
Talisman Sinopec Energy UK Limited
Jill Moir
UK Corporate Affairs & Communications Manager
01224 501087
Talisman Energy Inc. - Media and General Inquiries
Phoebe Buckland
External Communications
Talisman Energy Inc. - Shareholder and Investor Inquiries
Lyle McLeod, Vice-President
Investor Relations
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