The ratings on Talisman Energy Inc. reflect the company's competitive position, its drill bit and acquisition-focused growth strategy, and the company's improving financial risk profile. Risks associated with Talisman's high-growth strategy are mitigated by the low geologic risk in most of the company's major projects, increasing diversification, and relatively low debt leverage. At Dec. 31, 1999, Talisman's reserve base was 1.1 billion barrels of oil equivalent (boe), on a gross proven basis, and at March 31, 2001, the company's production mix remained 60% oil and 40% natural gas. The company's reserves are primarily located in Canada, the North Sea, Indonesia, and Sudan. Historically, Talisman's finding and development costs, which averaged C$5.34 for the past five years, and March 31, 2001,
