Talisman Energy Inc.

Talisman Energy Inc.

January 11, 2005 08:15 ET

Talisman Energy Reports New Discoveries at Monkman-Brazion Well Producing 66 mmcf/d


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TALISMAN ENERGY INC.

TSX, NYSE SYMBOL: TLM

JANUARY 11, 2005 - 08:15 ET

Talisman Energy Reports New Discoveries at
Monkman-Brazion Well Producing 66 mmcf/d

CALGARY, ALBERTA--(CCNMatthews - Jan. 11, 2005) - Talisman Energy Inc.
(TSX:TLM) (NYSE:TLM)has commenced production of the prolific Brazion
deep natural gas well in the Monkman area of northeastern British
Columbia. It is currently producing sales gas at rates of up to 66
mmcf/d. In addition, Talisman has drilled two successful Triassic
natural gas wells, which are expected to be on production in the second
quarter.

The previously announced Talisman Seneca Brazion b-60-E /93 well (80%
Talisman, 20% Seneca Energy Canada Inc.) commenced production on
December 13, two weeks ahead of schedule. The well is currently
producing sales gas at rates of approximately 66 mmcf/d and is being
choked back due to facilities constraints. Raw gas flow rates are in the
80 mmcf/d range.

Talisman plans to drill four more deep wells in 2005. One of these will
be a follow-up well on the 60E structure with a spud date planned for
the second quarter of 2005. Drilling is already underway at two other
Paleozoic prospects. Talisman announced the b-60-E discovery on November
1, 2004. The Company believes that over time, the deep play at Monkman
could be as prolific as the Triassic play where 2 tcf has been produced
to date.

"The 60E well is a boomer," said Dr. Jim Buckee, President and Chief
Executive Officer. "Early production data puts it as one of the better
exploration wells in the history of the Western Canada Basin. Our recent
discoveries in the Canadian Foothills and Appalachia have demonstrated
the success of our deep gas strategy, targeting larger, highly
productive natural gas pools. Talisman has set natural gas production
growth targets of 4-7% annually over the next three years."

Talisman has also made two new Triassic discoveries at Monkman. The
Talisman Shell a-16-F/93 well (50% Talisman, 50% Shell Canada Ltd.)
tested at 19 mmcf/d at 2,400 psi. This is a new pool discovery in the
Spieker area and is expected to be tied in to the Talisman operated
Bullmoose dehydration facility in the second quarter of 2005. A
follow-up well will be drilled later this year. Facility upgrades are
already in the planning phase and will be implemented in the latter part
of 2005 to allow the well to flow at its full potential. Another
successful well has been drilled at Sukunka c-3-A/93 (100% Talisman).
This well tested at a stabilized rate of 16 mmcf/d at 1,900 psi and will
be tied in to the Talisman operated West Sukunka Dehydration facility in
the second quarter of 2005.

Talisman Energy Inc. is a large, independent oil and gas producer with
operations in Canada and, through its subsidiaries, the North Sea,
Indonesia, Malaysia, Vietnam, Algeria, Trinidad and the United States.
Talisman's subsidiaries also conduct business in Colombia, Qatar and
Peru. Talisman has adopted the International Code of Ethics for Canadian
Business and is committed to maintaining high standards of excellence in
corporate citizenship and social and environmental responsibility
wherever its business is conducted. The Company is a participant in the
United Nations Global Compact, a voluntary initiative that brings
together companies, governments, civil society and other groups to
advance human rights, labour and environmental principles. Talisman's
shares are listed on the Toronto Stock Exchange in Canada and the New
York Stock Exchange in the United States under the symbol TLM.

Forward-looking Statements

This news release contains statements concerning estimated volumes and
timing of future production, business plans for exploration, development
and drilling, or other expectations, beliefs, plans, goals, objectives,
assumptions, information and statements about future events, conditions,
results of operations or performance that constitute "forward-looking
statements" within the meaning of applicable securities legislation.

Forward-looking statements are based on current expectations, estimates
and projections that involve a number of risks and uncertainties, which
could cause actual results to differ materially from those anticipated
by the Company and described in the forward-looking statements. These
risks and uncertainties include:

- the risks of the oil and gas industry, such as operational risks in
exploring for, developing and producing crude oil and natural gas and
market demand;

- risks and uncertainties involving geology of oil and gas deposits;

- the uncertainty of reserves estimates and reserves life;

- the uncertainty of estimates and projections relating to production,
costs and expenses;

- 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;

- health, safety and environmental risks;

- uncertainties as to the availability and cost of financing;

- uncertainties related to the litigation process, such as possible
discovery of new evidence or acceptance of novel legal theories and the
difficulties in predicting the decisions of judges and juries;

- risks in conducting foreign operations (for example, political and
fiscal instability or the possibility of civil unrest or military
action);

- general economic conditions;

- the effect of acts of, or actions against international terrorism; and

- the possibility that government policies or laws may change or
governmental approvals may be delayed or withheld.

We caution that the foregoing list of risks and uncertainties 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 Annual Report under the headings "Management's
Discussion and Analysis- Risks and Uncertainties", "- Liquidity and
Capital Resources", and "- Outlook for 2004", as well as in the
Company's other reports on file with Canadian securities regulatory
authorities and the United States Securities and Exchange Commission.

Forward-looking statements are based on the estimates and opinions of
the Company's management at the time the statements are made. The
Company assumes no obligation to update forward-looking statements
should circumstances or management's estimates or opinions change.

Note to U.S. Readers

Throughout this news release, Talisman makes reference to production
volumes. 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 U.S., net production
volumes are reported after the deduction of these amounts.

You may read any document Talisman furnishes to the SEC at the SEC's
public reference rooms at Room 1024, 450 Fifth Street, N.W., Washington,
D.C. 20549 and 500 West Meridian Street, Suite 1400, Chicago, Illinois
60661. You may also obtain copies of the same documents from the public
reference room of the SEC at 450 Fifth Street, N.W., Washington D.C.
20549 by paying a fee. Please call the SEC at 1-800-SEC-0330 for further
information on the public reference rooms.

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