The ratings on Talisman Energy Inc. reflect the company's competitive position, drill-bit-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. Talisman's 2003 product mix, at 54% liquids and 46% natural gas, is expected to remain liquids focused and at the current 55% and 45% mix in the near term. Talisman's proven reserves are primarily in Canada, the North Sea, Indonesia, Malaysia, Vietnam, and Algeria. The company's 2003 proved finding and development (F&D) costs, which averaged C$14.28 for the year, increased from its 2002 average of C$11.03, due largely to the
