The ratings on Calgary, Alta.-based 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 by the company's low geological risk in most of its major projects, its increasing diversification, and its long history of adhering to stated financial policies. Talisman's satisfactory business profile reflects its good internal growth prospects and competitive cost structure. In the near term, Talisman's 2004 product mix of 52% liquids and 48% natural gas is expected to remain relatively stable. Talisman's proven reserves are primarily in North America, the North Sea, Indonesia, Malaysia, Vietnam, Trinidad, and Algeria. Through the continued exploitation of its existing acreage, Talisman replaced 166% of its 2004
