Sabah Oil and Gas Conference 2014

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 OperationsTwo 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 providelong-term growth • Colombia – exploration and development underway • Other areas – considering alloptions • UK – Sinopec deal lowers exposure • Norway – sales process underway • Kurdistan – Kurdamir and Topkhana appraisal ongoing • 2014 production guidance 350-365 mboe/d • Core areas 324-334 mboe/d • Other 26-31 mboe/d • 2013 2P reserves ~1640 mmboe • Core areas ~1480 mmboe • Other ~160 mmboe

4. Talisman Energy - Asia PacificA Core Talisman Region Km 0 500 1,500 1,000 Vietnam HST/HSD Vietnam Nam Con Son Malay Basin Sabah Basin Tangguh South Sumatra Papua New Guinea Kitan/LamCor Core areas Additional Assets Exploration

5. Talisman Energy in MalaysiaAssets 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. SabahNew 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

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 Production @1/1/14 = 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 PSCGrowth Strategy • Improve the HSE Performance • Improve Field Reliability • Existing Platform Debottlenecking Project to be completed in Q4 2014. • New Platform • New Facilities • Additional Infill Drilling • Secondary Oil Recovery • Well interventions • Six Infill wells approved • Double Field Production within one year • Exploration Success • Potential Synergieswith PETRONAS Carigali in Sabah LP Separator KN 114st Within Talisman Corporate Responsibility Standards

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

10. Facilities DebottleneckingReady for Future Growth Facilities Debottlenecking • 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 RejuvenationMaximising use of Existing Slots Well 4 Well 5 Well 3 Main Fault Block East Fault Block Well 2 # 3 # 1 # 4 # 5 # 2 Well 1 Well 6 # 6 Note: All Wells Are Projected

12. Field RejuvenationDrilling 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 RedevelopmentMaximising 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 RedevelopmentSelected Concept Overview • Two Stage Development • Secondary Recovery Implementation • Increase field recovery factor to ~ 40% 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. South Sabah Synergies A way of working between Operators • 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 • MaximiseUtilisation of Existing Infrastructure

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

18. Thank You