Large portfolio of undeveloped acreage Increasing geographic diversification Moderate financial policies High full-cycle costs High debt per boe of proven reserves relative to peer group The ratings on Calgary, Alta.-based Talisman Energy Inc. reflect 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. Somewhat offsetting these strengths is a continuing trend of weak reserve replacement economics, which result in falling internal reserve replacement statistics despite relatively high exploration and development spending. As Talisman continues to redeploy substantially all of its operating cash flows into its exploration and development activities, there was little opportunity for debt reduction in 2006 and 2007. Talisman's satisfactory business risk profile reflects
