Drilling Report

    FOR:  TALISMAN ENERGY INC.

TSX, NYSE SYMBOL:  TLM

January 14, 2004

Talisman Announces Test Rate of 18 Million Cubic Feet Per Day From Appalachia Gas Well

CALGARY, ALBERTA--Fortuna Energy Inc., a wholly owned subsidiary of Talisman Energy Inc., recently
completed the Andrews Hz#1 gas well in the Corning area of New York State, in the Appalachian Basin.
The well tests a new structure and was drilled to a depth of 10,100 feet and then steered horizontally
within the upper Black River Formation.

The well flowed on test at rates in excess of 18 mmcf/d, limited by surface equipment, with a flowing
pressure of 1300 psi. The well was still unloading drilling and completion fluid during the flow test
and the rate was strengthening. Based on initial flow results, the Andrews well has the capability to
be the most prolific well encountered in the region to date and has an unconstrained potential in
excess of 30 mmcf/d.

Tie-in work is already underway and the well is expected to be onstream in early March at a pipeline-
restricted rate of 8-10 mmcf/d. Including the Andrews well, the Company estimates that it currently
has 30 mmcf/d of shut-in gas production behind pipe in the region. Additional pipeline sales capacity
should be available by early April.

Fortuna Energy Inc. has an active exploration and development program in 2004, with plans to drill a
total of 11 horizontal Black River wells. Fortuna Energy Inc. expects to spend $85 million in 2004,
increasing production to over 80 mmcf/d, 30% above 2003. There are three rigs currently drilling, one
of which has reached total depth and, based on drilling indicators, appears to be promising. Further
information on these wells will be released as they are tested.

Talisman Energy Inc. is a large, independent oil and gas producer, with operations in Canada and,
through its subsidiaries, the North Sea, Indonesia, Malaysia, Vietnam, Algeria and the United States.
Talisman's subsidiaries also conduct business in Trinidad, Colombia and Qatar. Talisman has adopted
the International Code of Ethics for Canadian Business and is committed to maintaining high standards
of excellence in corporate citizenship and social responsibility wherever its business is conducted.
Talisman's shares are listed on Toronto Stock Exchange in Canada and New York Stock Exchange in the
United States under the symbol TLM.

Forward-looking Statements

This news release contains statements about the estimated amounts and timing of production, plans for
drilling and development, the estimated amount and timing of capital expenditures, and access to
infrastructure that constitute "forward-looking statements" within the meaning of the United States
Private Securities Litigation Reform Act of 1995.

Forward-looking statements are based on current expectations, estimates and projections that involve a
number of risks and uncertainties, which could cause actual results to differ materially from those
anticipated by the Company and described in the forward-looking statements. These risks include the
risks of the oil and gas industry, such as operational risks in exploring for, developing and
producing natural gas; risks and uncertainties involving geology of gas deposits; the uncertainty of
estimates and projections relating to production, costs and expenses; potential delays or changes in
plans with respect to exploration or development projects or capital expenditures; and health, safety
and environmental risks. Relevant risks also include, but are not limited to: fluctuations in gas
prices and foreign currency exchange rates and the possibility that government policies may change.

Additional information on these and other factors which could affect the Company's operations or
financial results are included in the Company's Annual Report under the headings "Management's
Discussion and Analysis - Liquidity and Capital Resources", "- Risks and Uncertainties" and "-
Outlook" as well as in Talisman's other reports on file with Canadian securities regulatory
authorities and the United States Securities and Exchange Commission. Forward-looking statements are
based on the estimates and opinions of the Company's management at the time the statements are made.
The Company assumes no obligation to update forward-looking statements should circumstances or
management's estimates or opinions change.

Note to U.S. Residents

Talisman reports its production quantities in accordance with Canadian practices. These practices are
different than the practices used to report production estimates in reports and other materials filed
with the SEC by United States companies. The primary difference is that Talisman follows the Canadian
practice of reporting gross production volumes, which are prior to the deduction of royalties and
similar payments. In the United States, net production volumes are reported after deduction of these
amounts. As a consequence, Talisman's production volumes may not be comparable to those made by United
States companies subject to SEC reporting and disclosure requirements.

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FOR FURTHER INFORMATION PLEASE CONTACT:

David Mann
Senior Manager, Corporate & Investor Communications
[phone]
[phone] (FAX)
[e-mail]
www.talisman-energy.com

								
Talisman Energy Inc.