INVESTOR OPEN HOUSE. North America. March Please see advisories provided with this presentation

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1 INVESTOR OPEN HOUSE North America March 13 Please see advisories provided with this presentation

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3 NORTH AMERICA KEY MESSAGES 1 Core region well positioned in 5 of the best plays in North America Capital efficiency disciplined capital allocation and cost control 3 Improving cash flow margin continue shift to liquids and driving operational excellence Portfolio match North America footprint with capital funding capacity NORTH AMERICA A LARGE RESOURCE BASE Montney (~18, acres) Contingent resource: 8 tcfe 1 production: 7 mmcfe/d IRR: 18% Marcellus (PA) (~8, acres) Contingent resource: 5 tcfe 1 production: 51 mmcf/d IRR: 5% Eagle Ford (~7, acres) Duvernay (~37, acres) Contingent resource: 5 mmboe 1 production: 15 mboe/d IRR: 15-5% Prospective resource: 9 tcfe Full cycle break-even (post-tax) $/mcfe TLM presence Haynesville - tier one Barnett Fayetteville Edson (~5, acres) Marcellus Northeast Granite wash Duvernay shale Prospective resource: 65 mmboe 1 production: 6 mboe/d Dry gas Liquids-rich gas/oil Marcellus liquids-rich Montney Eagle Ford Source: WoodMac..6 March 13 NYSE: TLM TSX: TLM Page 1

4 IMPROVING HSE FOUNDATIONS TRIF Per million exposure hours 8 Spills Per million exposure hours Spills TRIF LONG-TERM RUNNING ROOM P reserves tcfe Contingent resources tcfe Prospective resources tcfe Total 5. Total 38 Total 13 Note: RLI=1 years Marcellus (PA) Marcellus (NY) Montney (JV) Montney (other) Eagle Ford Conventional North Duvernay South Duvernay March 13 NYSE: TLM TSX: TLM Page

5 CAPITAL DISCIPLINE Cash capital spend $ billion 13 capex by asset Percentage (%).5 Gas Liquids Eagle Ford Duvernay Marcellus Montney Canada liquids % 16% % 59% 1.1 7% % 7% 8% Montney Eagle Ford Single Well IRR%* % Marcellus Wild River/Turbo** 5 3 *Assumes COGEH price deck ** Project IRR DRIVES OPERATING CASH FLOW GROWTH AND NEAR-TERM SELF-FUNDED NORTH AMERICA BUSINESS Liquids Production mboe/d Sources and uses of cash $ billion Development/appraisal capex Operating cash flow* 5 +3% p.a * Assumes COGEH price deck March 13 NYSE: TLM TSX: TLM Page 3

6 MARCELLUS PREDICTABLE, SELF-FUNDED GROWTH New York 13 priorities: Protect core acreage in short term Optimize production C C C C C Pennsylvania TLM operated TLM non-operated TEUSA pipeline Major egress pipelines C TLM compressor station C Maintain leading execution and operating costs (break-even <$3/mcf) Self-funded growth Break-even <$.5/mcf over 5 uncompleted wells Flexibility to increase activity Asset summary Land (net acres, PA only) ~8, P reserves (tcfe, PA only). Contingent resources (tcfe, PA only) 5. Remaining well locations* (gross) ~1,6 1 EUR per well average (bcf) capex ($ million) ~15 13 production (mmcf/d) 1- * Based on 8 acre spacing MARCELLUS OPERATIONAL EXCELLENCE Drilling cycle time (spud to rig release) Avg. lateral length Days Lateral length feet 3 1, -6% p.a. Completion performance Stages per day +8% p.a , EUR per well (Troy) bcf March 13 NYSE: TLM TSX: TLM Page

7 MARCELLUS PROFITABLE, SUSTAINABLE PRODUCTION WITH GROWTH UPSIDE Sustain at ~ mmcf/d Sources and uses of cash $ million Self-funded growth to 5 mmcf/d Sources and uses of cash $ million Cash flow* Capital Free cash flow* Cash flow* Capital Free cash flow* Number of rigs Number of rigs * NYMEX gas price $/mmbtu: 13 - $3.6, 1 - $., 15 - $5. * NYMEX gas price $/mmbtu: 13 - $3.6, 1 - $., 15 - $5. Nymex Single well IRR % $ $. 8 $.5 EAGLE FORD TLM/STO land Oil Liquids Gas Karnes County DeWitt County 13 priorities: Focus on development of liquids-rich acreage Demonstrate repeatable and improved well productivity and top quartile D&C performance La Salle County McCullen County Live Oak County Smooth transition partial operatorship to Statoil 13 Eagle Ford summary Land (net acres) ~7, Contingent resources (mmboe) 5 Remaining well locations* (gross) ~1, EUR per well (mboe) ~6 (6% liquids) IP (mboe/d) 1.1 D&C cost ($ million) ~8.5 Production (mboe/d) ~3 Capex ($ million) ~65 * Based on 8 acre spacing Talisman operated Statoil operated Half cycle onstream cost per bbl $ thousand per mboe/d March 13 NYSE: TLM TSX: TLM Page 5

8 EAGLE FORD OPERATING MOMENTUM Production (mboe/d) Sources and uses of cash $ million 6 Gas Liquids Operating cash flow* Development/appraisal capex % p.a * Assumes COGEH price deck 1 15 EAGLE FORD CONTINUOUS IMPROVEMENT Drilling cycle time Days H H 11-19% p.a. D&C cost per well $ million % p.a H H 1 % pad 36 drilling H 1 5 H 1 <5 13 target target < 1-15 target < target Unlocking value: drilling cycle times Achieving a target DCT of days Adds 5 mboe/d (net) on a 7 rig program Resulting in incremental cash flow of ~$ million annually Unlocking value: D&C costs Achieving a D&C cost per well of $7 million Allows for drilling of 8 gross (1 net) additional wells on a similar capital program Resulting in incremental cash flow of $1 million ($6 million TLM net) March 13 NYSE: TLM TSX: TLM Page 6

9 DEEP BASIN EDSON Alberta TLM land Midstream pipeline Facility Deep cut Talisman egress and midstream infrastructure provides competitive advantage 13 development focus Wild River Edson Wild River (deep cut Q 13) Wilrich Notikewin Edson Building liquids-rich inventory for 1+ High grading through continued farm-out and JV Falher Wilrich Bluesky Asset summary Land (net acres) ~5, Prospective resources (mmboe) ~65 Net TLM acres (s) Industry type curve (EUR, bcfe) Liquids content bbl/mmscf Single well IRR (%) Net well locations ~1,3 13 production* (mboe/d) capex ($ million) 15 Oldman/ Wild River Wilrich * 9 *Includes Foothills production * Project IRR MONTNEY British Columbia Greater Cypress 11 tcfe contingent resource TLM land Basin Major pipeline Farrell Creek JV/Cypress A JV 1 tcfe contingent resource Alberta Greater Groundbirch 7 tcfe contingent resource World class resource well positioned for accessing premium Asian LNG markets Farrell Creek/Cypress A JV Focus on liquids-rich East Farrell Creek Continue appraising Cypress A ~ $1 billion of Sasol carry remaining Improving execution track record Strategic intent to dilute/exit one or more parts Asset summary Land (net acres) ~18, Contingent resources (tcfe) ~8 13 expected D&C ($ million) ~ <9 13 capex ($ million) ~ 13 production (mmcfe/d) ~7 Total processing capacity (mmcf/d) 3 March 13 NYSE: TLM TSX: TLM Page 7

10 MONTNEY CONTINUOUS IMPROVEMENT Cycle time (spud to TD) Days 6 6 D&C cost per well $ million % p.a. 7 Next largest competitor median: 5 days % p.a < target target NORTH DUVERNAY (KAYBOB) POSITION Oil Liquids Gas Large land and resource position 158, net acres PIIP:.6 billion boe Prospective resource.8 billion boe Extensive Talisman legacy infrastructure -9 ~1 horizontal industry wells drilled to date TLM land Celtic (Exxon/Imperial) Encana Chevron Industry well TLM drilled and completed Talisman gas plant 1 3 Km Strategy: exit/jv and focus on South Duvernay March 13 NYSE: TLM TSX: TLM Page 8

11 SOUTH DUVERNAY WILLESDEN GREEN POSITION Gas Liquids Oil Km bbl/mmcf 1 bbl/mmcf Rocky Mountain House TLM land Encana Industry well Drilled and completed In In progress Largest land and resource position in oil and richest portion of condensate window 189, net acres PIIP:.7 billion boe Prospective resource:.6 billion boe Completed wells confirm reservoir quality and high liquid yields Continued appraisal in 13 with -3 additional wells Operational Length (ft) # of Stages Gas (mcf/d) IP Oil (bbls/d) Wellhead yield (bbl/mmcf) Quality API Gravity W5* 35 5/ W5** 353 7/ *IP3 **IP7 NORTH AMERICA SUMMARY Competitive advantage Near-term value drivers Marcellus Material high quality land position Execution track record 1 Continued liquids momentum and gas price optionality Eagle Ford Well-positioned liquids window Near-term liquids/cash flow growth Focused and disciplined capital program Montney World scale resource position Access Asian markets 3 Operational excellence Duvernay Material land position in liquids-rich window Portfolio optimization Greater Edson Liquids-rich optionality Legacy infrastructure March 13 NYSE: TLM TSX: TLM Page 9

12 INVESTOR RELATIONS CONTACTS: Scott Thomson Executive Vice President, Finance and Chief Financial Officer (3) ANALYST & INVESTOR RELATIONS INQUIRIES: Lyle McLeod Vice President, Investor Relations (3) 37.1 Anil Aggarwala Manager, Investor Relations (3) GENERAL & MEDIA INQUIRIES: David Mann Vice President, Corporate & Investor Communications (3) TALISMAN ENERGY INC. Suite, 888-3rd Street S.W. Calgary, AB TP 5C5 Phone: (3) Fax: (3) Website: