CALGARY, ALBERTA--(Marketwire - Sept. 18, 2012) - Talisman Energy Inc. (News - Market indicators) (NYSE:TLM) has announced its decision to stop exploration activities in the Marañon Basin in northern Peru, performed by its subsidiary, Talisman Peru B.V., and exit the country upon completion of ongoing commercial transactions. Talisman Peru B.V. is the operator in blocks 64 and 103 and has non-operated interests in blocks 123 and 129. Talisman has been exploring in northern Peru since 2004.

Richard Herbert, Executive Vice-President, International Exploration of Talisman Energy Inc., said, "Despite our success in finding light oil in Block 64 (Situche Central), we have been unable to build a material resource position in Peru. After careful consideration, a decision has been made to exit Peru and focus on near-term liquids and oil-linked gas opportunities in our global portfolio. Talisman Peru B.V. will begin the process to withdraw from the License Contracts and work with Perupetro, the Peruvian petroleum licensing agency, to enable a smooth and efficient transition of the License Contracts to a new operator. While we are disappointed this play has not come to fruition for Talisman, we are hopeful another operator will continue our good work in the area and develop the Situche discovery in the future."

Talisman Peru B.V. has enjoyed strong support from the Peruvian government and local authorities, and is proud of the relationships that have been built with local communities in the Marañon Basin. Alan Murray, General Manager of Talisman Peru B.V, said, "We are very grateful for the support of the indigenous federations living near our operations. In addition, the support of the local authorities has been key. Without their support, our exploration activities would not have been possible. We have worked closely with these organizations for many years, investing in health care, education and transportation, and will continue to do so through a transition plan."

Talisman Peru B.V. will continue working in Peru in order to fulfill any contractual or legal obligations related to its operations, particularly those related to environmental or social issues. "We are proud of our environmental record, and as part of our exit, we will ensure that we fulfill any outstanding commitments to restore the areas we have been working in" said Herbert.

Talisman Energy Inc. is a global, diversified, upstream oil and gas company, headquartered in Canada. Talisman's three main operating areas are North America, the North Sea and Southeast Asia. The company also has a portfolio of international exploration opportunities. Talisman is committed to conducting business safely, in a socially and environmentally responsible manner, and is included in the Dow Jones Sustainability (North America) Index. Talisman is listed on the Toronto and New York Stock Exchanges under the symbol TLM. Please visit our website at www.talisman-energy.com

Advisories

This news release contains information that constitutes "forward-looking information" or "forward-looking statements". This forward-looking information includes, among others, statements regarding: business strategy, priorities and plans; expected process with Perupetro to withdraw from the License Contracts; expected continuation of health care, education and transportation through the approximately two year transition; expected fulfillments of any contractual or legal obligations related to Talisman Peru B.V.'s operations; and other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. The Company believes the material factors, expectations and assumptions reflected in the forward-looking information are reasonable but no assurance can be given that these factors, expectations and assumptions will prove to be correct. Undue reliance should not be placed on forward-looking information. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks which could cause actual results to vary and in some instances to differ materially from those anticipated by Talisman and described in the forward-looking information contained in this news release. Additional information on factors which could affect the Company's operations or financial results or strategy are included in Talisman's most recent Annual Information Form and information is available in the Company's other reports on file with Canadian securities regulatory authorities and the US SEC. Forward-looking information is based on the estimates and opinions of the Company's management at the time the information is presented. The Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change, except as required by law.