Talisman Energy

MARCELLUS SHALE ACREAGE
Greenbrier, Nicholas and Webster Counties, West Virginia

Opportunity to acquire a substantial operated leasehold position with long-term resource potential in the expanding southern window of the Marcellus Shale play.

• Active leasing, well permitting and drilling in the area by Eastern American, Chesapeake, Equitable, Triana Energy and ExxonMobil
• Estimated Ultimate Recovery (EUR) of 2.8 BCF/well
• Reasonable capital costs as drill depths are 6,000-8,000 feet
• Well developed and expanding infrastructure from historic production will allow the buyer to fully develop the asset base
• Acreage lies in close proximity to major market pipelines
  • Columbia Gas Transmission
    

Land

• ~18,170 gross and net acres that could provide up to 227 potential locations based on 80-acre spacing
  • Webster (11,529), Nicholas (6,301), Greenbrier (340)
• 100% working interest / 87.5% net revenue interest
• Lease expirations in 2014-15 with 5-year extension options
• Leases cover all depths
• No drilling commitments or requirements to maintain leases
  

Upside Potential

• Multiple prospective secondary targets in the Geneseo and Moscow Shales and Oriskany Sand
• Additional upside falls within the outline of the Rome Trough containing Cambrian aged shales for deeper resource play potential

NOTE: A Confidentiality Agreement ("CA") must be executed prior to receiving the data package.

Disclaimer

None of Talisman Energy Inc. or its affiliates (collectively, the “Company”) or any subsidiaries, officers, directors, shareholders, employees, consultants, advisors, agents or representatives (collectively, “Representatives”) of the foregoing, make any representation or warranty, express or implied, in connection with any of the information made available herein, including but not limited to the past, present or future value of anticipated reserves, production, cash flows, income, costs, expenses, liabilities and profits, if any, to be derived from the opportunity described herein (the “Opportunity”). All estimates, statistics, opinions and forecasts are, by their nature, based on a number of assumptions, are subjective and may contain errors and omissions. Accordingly, any person, company or interested party will rely solely upon its own independent examination and assessment of the information in making any decision in connection with the Opportunity. The Company and its Representatives expressly disclaim any and all liability relating to or resulting from the use of this Opportunity overview, any errors therein or omissions there from or the use of any other related information by a prospective purchaser or any of its affiliates, agents or representatives. In all cases, each recipient should conduct its own independent investigation and analysis of this opportunity and the information contained within this presentation.

The sole purpose of this overview is to assist the recipient in deciding whether to proceed with a further investigation of the Opportunity. These materials are not intended, nor do they purport, to form the basis of any investment decision or any decision to submit a proposal. This Opportunity overview is not, and nothing contained herein should be construed as, an offer to sell or a solicitation to purchase securities that may in the future be offered through the Opportunity. Under no circumstances, and at no time, should any interested party infer or consider that a transaction relating to the Opportunity or the Company has occurred, or will occur, until an agreement with the Company has been properly executed. The Company reserves the right at any time to (i) negotiate with one or more parties and to enter into a definitive agreement, without prior notice to any recipient of these materials or any other party, (ii) terminate further participation in the investigation and proposal process by any party, (iii) require the return of these materials (together with any copies or extracts thereof), and (iv) modify any procedures relating to this process without assigning any reason therefor.

Unless otherwise stated, production volumes are stated on a company interest basis prior to the deduction of royalties and similar payments. Estimated ultimate recovery (EUR) is a term commonly used in the oil and gas industry. EUR is an estimate of the quantity of oil and gas that is potentially recoverable. There is no certainty that it will be commercially viable to produce any portion of the EUR amount that is contained herein.