The ratings on Calgary, Alta.-based Talisman Energy Inc. reflect its consolidated reserve profile that allows for an internal drill-bit-focused growth strategy supplemented by acquisitions. The 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. These strengths are partially offset by the company's consolidated full-cycle cost profile (which is somewhat higher than that of its 'BBB+' rated peers), and Standard & Poor's Ratings Services' calculation of the company's leverage per barrel of proven reserves that, based on its gross lease-adjusted debt of about C$2.71 (or US$2.30) per barrel of oil equivalent (boe) at year-end 2005, is higher
