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 is 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. In the near term, Talisman's 2003 product mix of 54% liquids and 46% natural gas is expected to remain at the current liquids-focused mix. Talisman's proven reserves are primarily in Canada, the North Sea, Indonesia, Malaysia, Vietnam, and Algeria. In addition, exploration activities in new areas, such as Trinidad and Colombia, should provide future reserves and production growth. The company's 2003 proved finding and development (F&D) costs, which
