|US Readers:              |                           |       |  |            |  |        | 
|------------------------ | ------------------------- | ----- |  | ---------- |  | ------ | 
|Product Netbacks         |                           |       |  |            |  |        | 
|(Net of Royalties)  US$ |                           | 2003  |  | 2002       |  | 2001   | 
|                         |                           |       |  |            |  |        | 
|North America            | Oil and Liquids (US$/bbl) |       |  |            |  |        | 
|                         | Sales Price               | 25.20 |  | 20.65      |  | 19.89  | 
|                         | Hedging (gain)            | 2.21  |  | 0.04       |  | (0.10) | 
|                         | Operating costs           | 5.67  |  | 4.48       |  | 4.33   | 
|                         |                           |       |  |            |  |        | 
|                         |                           | 17.32 |  | 16.13      |  | 15.66  | 
|                         |                           |       |  |            |  |        | 
|                         | Natural Gas (US$/mcf)     |       |  |            |  |        | 
|                         | Sales Price               | 4.55  |  | 2.52       |  | 3.48   | 
|                         | Hedging (gain)            | 0.10  |  | (0.22)0.02 |  |        | 
|                         | Operating costs           | 0.68  |  | 0.56       |  | 0.57   | 
|                         |                           |       |  |            |  |        | 
|                         |                           | 3.77  |  | 2.18       |  | 2.89   | 
|                         |                           |       |  |            |  |        | 
|North Sea                | Oil and Liquids (US$/bbl) |       |  |            |  |        | 
|                         | Sales Price               | 28.35 |  | 24.68      |  | 23.29  | 
|                         | Hedging (gain)            | 1.43  |  | 0.08       |  | (0.12) | 
|                         | Operating costs           | 9.02  |  | 7.38       |  | 6.83   | 
|                         |                           |       |  |            |  |        | 
|                         |                           | 17.90 |  | 17.22      |  | 16.58  | 
|                         |                           |       |  |            |  |        | 
|                         | Natural Gas (US$/mcf)     |       |  |            |  |        | 
|                         | Sales Price               | 3.26  |  | 2.48       |  | 2.81   | 
|                         | Hedging (gain)            |      |  |           |  |       | 
|                         | Operating costs           | 0.41  |  | 0.44       |  | 0.33   | 
|                         |                           |       |  |            |  |        | 
|                         |                           | 2.85  |  | 2.04       |  | 2.48   | 
|                         |                           |       |  |            |  |        | 
|Southeast Asia1          | Oil and Liquids (US$/bbl) |       |  |            |  |        | 
|                         | Sales Price               | 29.30 |  | 25.13      |  | 23.22  | 
|                         | Hedging (gain)            | 2.78  |  | 0.06       |  | (0.28) | 
|                         | Operating costs           | 8.60  |  | 8.09       |  | 6.53   | 
|                         |                           |       |  |            |  |        | 
|                         |                           | 17.92 |  | 16.98      |  | 16.97  | 
|                         |                           |       |  |            |  |        | 
|                         | Natural Gas (US$/mcf)     |       |  |            |  |        | 
|                         | Sales Price               | 3.53  |  | 3.01       |  | 3.10   | 
|                         | Hedging (gain)            |      |  |           |  | 0.01   | 
|                         | Operating costs           | 0.38  |  | 0.40       |  | 0.32   | 
|                         |                           |       |  |            |  |        | 
|                         |                           | 3.15  |  | 2.61       |  | 2.77   | 
|                         |                           |       |  |            |  |        | 
|Algeria                  | Oil (US$/bbl)             |       |  |            |  |        | 
|                         | Sales Price               | 27.84 |  |           |  |       | 
|                         | Hedging (gain)            | 3.13  |  |           |  |       | 
|                         | Operating costs           | 9.61  |  |           |  |       | 
|                         |                           |       |  |            |  |        | 
|                         |                           | 15.10 |  |           |  |       | 
|                         |                           |       |  |            |  |        | 
|Sudan                    | Oil (US$/bbl)             |       |  |            |  |        | 
|                         | Sales Price               | 31.33 |  | 24.06      |  | 21.09  | 
|                         | Hedging (gain)            |      |  | 0.08       |  | (0.14) | 
|                         | Operating costs           | 4.96  |  | 4.02       |  | 3.60   | 
|                         |                           |       |  |            |  |        | 
|                         |                           | 26.37 |  | 19.96      |  | 17.63  | 
|                         |                           |       |  |            |  |        | 
|Total Company            | Oil and Liquids (US$/bbl) |       |  |            |  |        | 
|                         | Sales Price               | 27.76 |  | 23.74      |  | 21.95  | 
|                         | Hedging (gain)            | 1.71  |  | 0.07       |  | (0.13) | 
|                         | Operating costs           | 8.02  |  | 6.25       |  | 5.64   | 
|                         |                           |       |  |            |  |        | 
|                         |                           | 18.03 |  | 17.42      |  | 16.44  | 
|                         |                           |       |  |            |  |        | 
|                         | Natural Gas (US$/mcf)     |       |  |            |  |        | 
|                         | Sales Price               | 4.27  |  | 2.57       |  | 3.37   | 
|                         | Hedging (gain)            | 0.07  |  | (0.17)0.01 |  |        | 
|                         | Operating costs           | 0.61  |  | 0.53       |  | 0.52   | 
|                         |                           |       |  |            |  |        | 
|                         |                           | 3.59  |  | 2.21       |  | 2.84   | 
|                         |                           |       |  |            |  |        | 



1 Includes operations in Indonesia and Malaysia/Vietnam.

Netbacks do not include synthetic oil or pipeline operations.



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T A L I S M A N    E N E R G Y I N C.

S u p p l e m e n t a r y    I n f o r m a t i o n

---

Product Netbacks

|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|--------- | ----------------------- | ------ |  | ------------------ |  | ------ |  | ------------------ | ---- | ------ |  | ------ |  | ------ |  | ------ |  | ------ |  | ------ |  | ------ | 
|          |                         |        |  | 2003               |  |        |  | 2002               | 2001 |       
|          |                         | Total  |  | Three months ended |  | Total  |  | Three months ended |      | Total  | 
|C$ Gross  |                         | Year   |  | Dec 31             |  | Sep 30 |  | Jun 30             |      | Mar 31 |  | Year   |  | Dec 31 |  | Sep 30 |  | Jun 30 |  | Mar 31 |  | Year   | 
|North     | Oil and liquids ($/bbl) |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|America   | Sales price             | 35.30  |  | 31.88              |  | 33.43  |  | 32.92              |      | 42.74  |  | 32.43  |  | 34.57  |  | 35.57  |  | 32.76  |  | 26.82  |  | 30.80  | 
|          | Hedging (gain)          | 2.45   |  | 2.07               |  | 2.05   |  | 1.26               |      | 4.38   |  | 0.06   |  | 0.36   |  | 0.52   |  | 0.11   |  | (0.77) |  | (0.12) | 
|          | Royalties               | 7.37   |  | 6.86               |  | 6.81   |  | 6.50               |      | 9.27   |  | 6.85   |  | 7.42   |  | 7.74   |  | 6.35   |  | 5.90   |  | 6.88   | 
|          | Operating costs         | 6.28   |  | 6.76               |  | 6.21   |  | 5.89               |      | 6.27   |  | 5.55   |  | 6.20   |  | 5.91   |  | 4.64   |  | 5.48   |  | 5.22   | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          |                         | 19.20  |  | 16.19              |  | 18.36  |  | 19.27              |      | 22.82  |  | 19.97  |  | 20.59  |  | 21.40  |  | 21.66  |  | 16.21  |  | 18.82  | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          | Natural gas ($/mcf)     |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          | Sales price             | 6.37   |  | 5.11               |  | 5.92   |  | 6.41               |      | 8.03   |  | 3.96   |  | 5.21   |  | 3.26   |  | 4.08   |  | 3.29   |  | 5.39   | 
|          | Hedging (gain)          | 0.11   |  | (0.04)             |  | 0.03   |  | 0.12               |      | 0.32   |  | (0.28) |  | (0.11) |  | (0.37) |  | (0.21) |  | (0.42) |  | 0.02   | 
|          | Royalties               | 1.37   |  | 1.08               |  | 1.18   |  | 1.54               |      | 1.69   |  | 0.75   |  | 1.04   |  | 0.55   |  | 0.73   |  | 0.67   |  | 1.34   | 
|          | Operating costs         | 0.75   |  | 0.78               |  | 0.77   |  | 0.70               |      | 0.76   |  | 0.71   |  | 0.78   |  | 0.74   |  | 0.65   |  | 0.66   |  | 0.67   | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          |                         | 4.14   |  | 3.29               |  | 3.94   |  | 4.05               |      | 5.26   |  | 2.78   |  | 3.50   |  | 2.34   |  | 2.91   |  | 2.38   |  | 3.36   | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|North Sea | Oil and liquids ($/bbl) |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          | Sales price             | 39.72  |  | 38.81              |  | 38.66  |  | 35.29              |      | 46.14  |  | 38.76  |  | 41.77  |  | 41.89  |  | 37.71  |  | 33.87  |  | 36.07  | 
|          | Hedging (gain)          | 2.01   |  | 2.07               |  | 1.98   |  | 0.14               |      | 3.74   |  | 0.12   |  | 0.38   |  | 0.75   |  | 0.11   |  | (0.74) |  | (0.17) | 
|          | Royalties               | (0.08) |  | 0.60               |  | (0.27) |  | (0.89)             |      | 0.09   |  | 1.60   |  | 1.72   |  | 1.68   |  | 1.41   |  | 1.60   |  | 1.85   | 
|          | Operating costs         | 12.67  |  | 11.82              |  | 12.12  |  | 12.91              |      | 14.04  |  | 11.11  |  | 12.00  |  | 12.74  |  | 9.51   |  | 10.27  |  | 10.06  | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          |                         | 25.12  |  | 24.32              |  | 24.83  |  | 23.13              |      | 28.27  |  | 25.93  |  | 27.67  |  | 26.72  |  | 26.68  |  | 22.74  |  | 24.33  | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          | Natural gas ($/mcf)     |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          | Sales price             | 4.57   |  | 4.86               |  | 4.08   |  | 4.16               |      | 4.93   |  | 3.89   |  | 4.51   |  | 3.13   |  | 3.05   |  | 5.04   |  | 4.35   | 
|          | Hedging (gain)          |       |  |                   |  |       |  |                   |      |       |  |       |  |       |  |       |  |       |  |       |  |       | 
|          | Royalties               | 0.28   |  | 0.63               |  | 0.09   |  | 0.04               |      | 0.25   |  | 0.48   |  | 0.27   |  | 0.46   |  | 0.41   |  | 0.79   |  | 0.46   | 
|          | Operating costs         | 0.54   |  | 0.48               |  | 0.71   |  | 0.38               |      | 0.58   |  | 0.61   |  | 0.92   |  | 0.61   |  | 0.49   |  | 0.45   |  | 0.46   | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          |                         | 3.75   |  | 3.75               |  | 3.28   |  | 3.74               |      | 4.10   |  | 2.80   |  | 3.32   |  | 2.06   |  | 2.15   |  | 3.80   |  | 3.43   | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|Southeast | Oil and liquids ($/bbl) |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|Asia1     | Sales price             | 41.05  |  | 41.36              |  | 38.26  |  | 37.81              |      | 47.08  |  | 39.46  |  | 45.04  |  | 41.27  |  | 38.77  |  | 32.84  |  | 35.97  | 
|          | Hedging (gain)          | 2.37   |  | 2.10               |  | 2.07   |  | 1.26               |      | 4.30   |  | 0.06   |  | 0.36   |  | 0.53   |  | 0.11   |  | (0.76) |  | (0.30) | 
|          | Royalties               | 16.09  |  | 15.69              |  | 14.43  |  | 15.86              |      | 18.71  |  | 14.83  |  | 17.13  |  | 16.13  |  | 13.76  |  | 12.34  |  | 10.69  | 
|          | Operating costs         | 7.33   |  | 6.83               |  | 7.13   |  | 7.22               |      | 8.37   |  | 7.93   |  | 8.67   |  | 8.30   |  | 7.61   |  | 7.15   |  | 7.13   | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          |                         | 15.26  |  | 16.74              |  | 14.63  |  | 13.47              |      | 15.70  |  | 16.64  |  | 18.88  |  | 16.31  |  | 17.29  |  | 14.11  |  | 18.45  | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          | Natural gas ($/mcf)     |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          | Sales price             | 4.95   |  | 4.63               |  | 4.41   |  | 5.05               |      | 6.09   |  | 4.72   |  | 6.00   |  | 4.12   |  | 4.92   |  | 3.96   |  | 4.80   | 
|          | Hedging (gain)          |       |  |                   |  |       |  |                   |      |       |  |       |  |       |  |       |  |       |  |       |  | 0.02   | 
|          | Royalties               | 0.29   |  | 0.33               |  | 0.24   |  | 0.27               |      | 0.34   |  | 0.25   |  | 0.31   |  | 0.24   |  | 0.25   |  | 0.20   |  | 0.24   | 
|          | Operating costs         | 0.50   |  | 0.41               |  | 0.53   |  | 0.49               |      | 0.64   |  | 0.59   |  | 0.80   |  | 0.69   |  | 0.49   |  | 0.42   |  | 0.47   | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          |                         | 4.16   |  | 3.89               |  | 3.64   |  | 4.29               |      | 5.11   |  | 3.88   |  | 4.89   |  | 3.19   |  | 4.18   |  | 3.34   |  | 4.07   | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|Algeria   | Oil ($/bbl)             |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          | Sales price             | 39.01  |  | 39.70              |  | 39.37  |  | 35.05              |      | 40.33  |  |       |  |       |  |       |  |       |  |       |  |       | 
|          | Hedging (gain)          | 2.23   |  | 2.11               |  | 2.07   |  | 1.26               |      | 4.40   |  |       |  |       |  |       |  |       |  |       |  |       | 
|          | Royalties               | 19.18  |  | 18.52              |  | 20.38  |  | 18.04              |      | 20.16  |  |       |  |       |  |       |  |       |  |       |  |       | 
|          | Operating costs         | 6.84   |  | 4.30               |  | 12.24  |  | 4.07               |      | 6.23   |  |       |  |       |  |       |  |       |  |       |  |       | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          |                         | 10.76  |  | 14.77              |  | 4.68   |  | 11.68              |      | 9.54   |  |       |  |       |  |       |  |       |  |       |  |       | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|Sudan     | Oil ($/bbl)             |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          | Sales price             | 43.89  |  |                   |  |       |  |                   |      | 43.89  |  | 37.79  |  | 46.30  |  | 38.33  |  | 36.64  |  | 29.35  |  | 32.66  | 
|          | Hedging (gain)          |       |  |                   |  |       |  |                   |      |       |  | 0.07   |  | 0.37   |  | 0.52   |  | 0.11   |  | (0.75) |  | (0.13) | 
|          | Royalties               | 20.34  |  |                   |  |       |  |                   |      | 20.34  |  | 14.94  |  | 21.74  |  | 12.45  |  | 13.96  |  | 11.32  |  | 12.78  | 
|          | Operating costs         | 3.73   |  |                   |  |       |  |                   |      | 3.73   |  | 3.82   |  | 3.72   |  | 4.07   |  | 4.55   |  | 2.89   |  | 3.40   | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          |                         | 19.82  |  |                   |  |       |  |                   |      | 19.82  |  | 18.96  |  | 20.47  |  | 21.29  |  | 18.02  |  | 15.89  |  | 16.61  | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|Total     | Oil and liquids ($/bbl) |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|Company   | Sales price             | 38.93  |  | 37.53              |  | 37.15  |  | 34.87              |      | 44.85  |  | 37.20  |  | 41.47  |  | 39.64  |  | 36.46  |  | 31.27  |  | 33.99  | 
|          | Hedging (gain)          | 2.05   |  | 2.08               |  | 2.01   |  | 0.65               |      | 3.14   |  | 0.09   |  | 0.37   |  | 0.63   |  | 0.11   |  | (0.75) |  | (0.16) | 
|          | Royalties               | 5.59   |  | 5.13               |  | 4.20   |  | 3.83               |      | 8.53   |  | 6.83   |  | 8.85   |  | 6.66   |  | 6.32   |  | 5.52   |  | 6.22   | 
|          | Operating costs         | 9.63   |  | 9.51               |  | 9.89   |  | 9.87               |      | 9.36   |  | 7.99   |  | 8.53   |  | 8.89   |  | 7.17   |  | 7.38   |  | 7.15   | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          |                         | 21.66  |  | 20.81              |  | 21.05  |  | 20.52              |      | 23.82  |  | 22.29  |  | 23.72  |  | 23.46  |  | 22.86  |  | 19.12  |  | 20.78  | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          | Natural gas ($/mcf)     |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          | Sales price             | 6.03   |  | 5.02               |  | 5.59   |  | 6.09               |      | 7.48   |  | 4.03   |  | 5.20   |  | 3.32   |  | 4.02   |  | 3.55   |  | 5.22   | 
|          | Hedging (gain)          | 0.08   |  | (0.03)             |  | 0.02   |  | 0.10               |      | 0.25   |  | (0.22) |  | (0.09) |  | (0.30) |  | (0.16) |  | (0.33) |  | 0.02   | 
|          | Royalties               | 1.14   |  | 0.93               |  | 0.98   |  | 1.28               |      | 1.40   |  | 0.67   |  | 0.89   |  | 0.51   |  | 0.65   |  | 0.63   |  | 1.14   | 
|          | Operating costs         | 0.70   |  | 0.70               |  | 0.74   |  | 0.65               |      | 0.72   |  | 0.69   |  | 0.80   |  | 0.72   |  | 0.62   |  | 0.61   |  | 0.63   | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 
|          |                         | 4.11   |  | 3.42               |  | 3.85   |  | 4.06               |      | 5.11   |  | 2.89   |  | 3.60   |  | 2.39   |  | 2.91   |  | 2.64   |  | 3.43   | 
|          |                         |        |  |                    |  |        |  |                    |      |        |  |        |  |        |  |        |  |        |  |        |  |        | 



1 Includes operations in Indonesia and Malaysia/Vietnam.

Netbacks do not include synthetic oil or pipeline operations.





S u p p l e m e n t a r y I n f o r m a t i o n

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