1. Sabah Oil and Gas Conference 2014
Talisman Malaysia
Increasing Growth Opportunities for Sabah
May 26th, 2014

2. Content Overview of Talisman Energy Sabah Growth Strategy
Securing a Foundation
Maximising Asset Recovery
Expanding through Exploration
Working with other Operators

3. Talisman Energy Global Operations Two Core Regions : The Americas and Asia-Pacific
Core: Asia-Pacific
Generating free cash flow, near-term exploration potential
Long life assets with high netbacks
Core: Americas
Resource plays provide long-term growth
Colombia – exploration and development underway
Other areas – considering all options
UK – Sinopec deal lowers exposure
Norway – sales process underway
Kurdistan – Kurdamir and Topkhana appraisal ongoing
2014 production guidance mboe/d
Core areas mboe/d
Other mboe/d
2013 2P reserves ~1640 mmboe
Core areas ~1480 mmboe
Other ~160 mmboe

4. Talisman Energy - Asia Pacific A Core Talisman Region
Vietnam
HST/HSD
Vietnam
Nam Con Son
Malay Basin
Sabah Basin
Tangguh
South Sumatra
Papua New Guinea
Kitan/LamCor
Core areas
Additional Assets
Exploration
500
1,000
1,500 Km

5. Talisman Energy in Malaysia Assets Overview
TLM block
Oil field
Gas field
Vietnam
Malaysia
SB309 & SB310 (70% WI)
Gross exploration acreage 13,000 km2
3-4 well exploration program planned in 2014
PM-3 CAA (41% WI)
Unique cross-border development
Supplying gas to two nations
Talisman’s largest operated asset
Finalizing PSC extension
Kinabalu (60% WI)
Operated effective 26 Dec 2012
Successful completion of 3 infill wells
Commencing redevelopment
Sabah
PM305 & PM314 (60% WI)
SAA – about 85% recovery to date
Studying options to extend field life
Peninsular
Malaysia
Sarawak

6. Sabah New Core Area anchored by Kinabalu
Kinabalu is a secure base with upside recovery opportunities
Significant acreage in a prolific and proven hydrocarbon province
Extensive infrastructure enhances exploration monetization opportunities for oil and gas
Potential Synergies with other operators to optimise operation and Development Plans
Near Term
Kinabalu Transfer of Operatorship
Future Growth
Exploration Success 6

7. 2012 Kinabalu Oil PSC Overview
Kinabalu – Location Map
Kinabalu – Block Details
Block: SB1 Kinabalu
2012 Kinabalu Oil PSC:
Start Date: Dec 2012 (20 years license)
Operator: TLM (60%)
Partner: PETRONAS Carigali (40%)
Location
55 km NW of Labuan
28 km SW of Samarang
2 km SE of KNAG
Field Water Depth: 56 m
Discovery: 1989 and First Oil: Dec 1997
Cum. Oil = 97 MMstb
20 Development Wells (20 active strings)
Samarang Complex (PCSB*)
KNAG
(PCSB)
Kinabalu KNDP-A
Labuan
LCOT (SHELL)
First PSC handover to International Operator
First progressive volume PSC to encourage brownfield redevelopment
First infill well : 9 months following transfer of operatorship
Redevelopment project, Concept Selection : 10 months following transfer of operatorship

8. 2012 Kinabalu Oil PSC Growth Strategy
Production Operations
Early
Rejuvenation
Redevelopment
South Sabah
Growth & Synergies
Improve the HSE Performance
Improve Field Reliability
Existing Platform Debottlenecking Project to be completed in Q
Well interventions
Six Infill wells approved
Double Field Production within one year
New Platform
New Facilities
Additional Infill Drilling
Secondary Oil Recovery
Exploration Success
Potential Synergies with PETRONAS Carigali in Sabah
LP Separator
KN 114st
Within Talisman Corporate Responsibility Standards

9. Managing Aging Infrastructure It starts at the beginning
Management of Change
Training & Competency
DESIGN
CONSTRUCT
INSPECT
EMERGENCY RESPONSE
IDENTIFY HAZARDS
OPERATE
MAINTAIN
Cessation of Production Operations
Decommission
VERIFY
Helideck Lighting Installation
Crane serviced and recertified for man-riding
Additional Escape Route

10. Facilities Debottlenecking Ready for Future Growth
Initial Infill Drilling programme and well interventions increasing fluids throughput
Restrictions in liquid export rates
Preparation for additional offtake rates once the full field redevelopment project is implemented
Liquid Production Increase
Remove produced water prior to export
Convert LP Separator to 3 Phases
Equipment Integrity Improvement
Install Online Sand Removal System
Gas Production Increase
Modify LP Compressor to increase its capacity to minimize flaring.

11. Field Rejuvenation Maximising use of Existing Slots
Well 6
Well 1
Well 2
Well 4
Well 3
Well 5
# 4
# 3
# 5
# 1
# 6
# 2
East Fault Block
Main Fault Block
Note: All Wells Are Projected

12. Field Rejuvenation Drilling Performance to date
No Recordable Incidents (LTI, RWI, MTI)
Excellent operational performance - benefit of established Rig Contractor (20+ years in Malaysia)
Continuity of activity in Sabah – Key to Performance

13. Kinabalu Redevelopment Maximising Recovery Factor
A Team Approach : Project Success is driven by the Integration of all Disciplines
Consider Novel ‘Cost/Schedule Saving’ Schemes ‘No Stone Unturned’

14. Kinabalu Redevelopment Selected Concept Overview
Two Stage Development
Secondary Recovery Implementation
Increase field recovery factor to ~ 40%
Stage 1
(Early Production)
Stage 2
(Full Production)
Scope
Installation of a 20 slot wellhead platform (WHP) bridge linked to KNDP-A.
Maximum Use of Existing KNDP-A
Installation of a new CPP bridge linked to the new WHP
Gas Compression & Water Injection
Estimated 1st Oil
4Q 2016
4Q 2017
(Estimated 1st Injection)
New Well Head Platform

15. Exploration Portfolio
SB310 & SB309 Prospects and Leads
Partners: TML (70%), PCSB (30%)
PSC Signed; Effective Date - 26th October 2009
Exploration period: 6 years
5 Commitment wells in SB310; 3 wells in SB309

16. Operational Integration
South Sabah Synergies
A way of working between Operators
KNNAG / Kinabalu
Operational Integration
Samarang / Kinabalu
Network Optimization
Joint Development
Plans
KNNAG accommodation
Helicopter Sharing
Marine Vessels
Spare Sharing
Subsurface Data Sharing
5 Year Integrated Plans
Warehousing
Facilities optimization with KN and Samarang
Gas utilization
Liquid handling Debottlenecking
Area Development Plans
Maximise Utilisation of Existing Infrastructure

17. Corporate Responsibility within Talisman
Supporting our Growth Plans
Our Themes
Education
Health
Environment

18. Thank You