The ratings on Calgary, Alta.-based Talisman Energy Inc. reflect Standard&Poor's Ratings Services' opinion of a well-diversified portfolio of upstream assets, the growth potential inherent in the company's undeveloped acreage, and a history of fairly moderate financial policies. We believe that partially offsetting these strengths are the risks associated with ongoing exploration and production activities to offset conventional production declines and a cost structure that remains elevated relative to that of peers despite recent improvements. Talisman's portfolio of assets focuses on North American shale gas, deepwater fields in the North Sea and southeast Asia, as well as a portfolio of global exploration activities. The company averaged daily production (after royalties) of about 362,000 barrels of oil equivalent (boe) in
