The ratings on Talisman Energy Inc. reflect the company's competitive position, drill bit- and acquisition-focused growth strategy, and conservative financial risk profile. Risks associated with Talisman's growth strategy are balanced with low geological risk in most of the company's major projects, increasing diversification, and a long history of adhering to stated financial policies. Following the sale of Talisman's interests in Sudan, the company's production mix is expected to remain liquids focused, with the near-term mix shifting to about 55% liquids and 45% natural gas from the previous 60% to 40% ratio. Talisman's proven reserves are primarily in Canada, the North Sea, Indonesia, Malaysia, Vietnam, and Algeria. The company's 2002 proved finding and development (F&D) costs, which averaged C$11.03 for the
