The ratings on Talisman Energy Inc. reflect the company's competitive position, its drill bit and acquisition-focused growth strategy, and the company's conservative financial risk profile. Risks associated with Talisman's high-growth strategy are balanced with low geologic risk in most of the company's major projects, increasing diversification, and its proven ability to return to its stated debt targets subsequent to acquisitions. At Dec. 31, 2000, Talisman's reserve base was 1.1772 billion barrels of oil equivalent (boe), on a gross proven basis, and the company's production mix remains at 60% oil and 40% natural gas. Talisman's reserves are primarily located in Canada, the North Sea, Indonesia, and Sudan. Historically, Talisman's proved finding and development (F&D) costs, which averaged C$5.54 for the past
