2. Outline
• Overview of Talisman’s business portfolio
• Context of our Canadian operations
• Shale Operating Principles
• Corporate Responsibility at Talisman
– Good Neighbour Program
– Local Economic Engagement Strategy (LEES)
• Case Studies from the Montney Shale Play, BC
– Aboriginal Engagement
– Farrell Creek Water Pipeline Project
• Community relations in Poland
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3. Talisman Energy – Focus and unlock value
North Sea Producing areas
Sinopec deal helps
North America
stabilize base
Resource plays provide Exploration areas
long-term growth
European shale
Kurdistan
Colombia
building new core area –
acquisition, development,
and exploration Southeast Asia
Growing free cash flow,
long-term exploration
potential
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4. North American Portfolio
• A total of 840,000 shale acres in development
or early piloting
― Eagle Ford - one of the best returning plays in North
America
― Duvernay - testing for liquids
― Montney – major resource with future options
― Marcellus – significant contribution to production
― Edson – 700,000 acres, emerging liquids
opportunities
Remaining well locations*
Remaining well locations*
Acres
Acres
(approx.) (approx.)
Eagle Ford
780 80,000
Liquids-rich
Duvernay
Currently piloting 350,000
Liquids-rich
Montney
Dry gas/liquids- 5,700 200,000
rich
Marcellus
TLM land 1,700 200,000
Dry gas
Area of operation
Edson 1,900 700,000
*As of December 31, 2011
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5. Talisman’s Shale Operating Principles
Responsible Operations
• Committed to our Global Community Relations Policy to
minimize impacts on the environment and communities
• Proactively engage stakeholders when planning and
conducting our activities
• Endeavour to be the operator of choice, and hold our
contractors accountable to our Standards and Principles
Mutual Benefit
• Committed to delivering economic and development
opportunities through our Local Economic Engagement
Strategy
• Promote the development of communities by sharing
economic benefits
Transparency and Collaboration
• Work with stakeholders in an open and transparent
manner
• Conduct our business to the highest ethical standard in
accordance with our Policy on Business Conduct and
Ethics
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6. Corporate Responsibility at Talisman Energy
GLOBAL COMMUNITY RELATIONS POLICY
POLICY ON BUSINESS CONDUCT AND ETHICS
CORPORATE PRINCIPLES
Engage with stakeholders; Provide local benefits; Respect human
rights; Conduct business ethically; Operate transparently
Standards, Guidelines, Programs
( e.g. Aboriginal Relations Guidelines in Canada)
Canada-specific protocols, local execution and
practices
Local
Good Economic
Neighbour Engagement Community Stakeholder
Program Strategy Investment consultations
(GNP) (LEES)
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7. Talisman’s Good Neighbour Program
• The Good Neighbour (GNP) Program adds consistency, process and a practical
approach to managing our risk across our North American Operations.
• The GNP addresses the need to proactively address and mitigate these impacts to
reduce stakeholder risk, and maintain our social and regulatory licence to operate.
• The GNP has been implemented across Talisman’s North American Operations
(Canada and US) and in Poland.
• The GNP is a field based initiative.
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8. Good Neighbour Program – Key Points
• Key Commitments:
– Roads – Speed, traffic, school bus
schedules
– Dust- Dust control for roads in close
proximity to residences
– Noise - No Retarder/Jake brakes within
town limits
– Weeds - Assess existing weeds,
undertake weed control
– Lease Maintenance - Controlling litter on
lease sites, roads
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9. Developing Communities Through Sharing Benefits
The Local Economic Engagement Strategy is
key to Talisman’s operations and is a tangible
demonstration of our commitment to local
communities impacted by our activities:
1. Investing in local economies;
2. Proactively engaging local contractors in our
operations;
3. Training to increase capacity of local
communities;
4. Local KPIs - set targets, and measure, track
and report these results to our stakeholders.
In 2011, Talisman spent $ 1.5 billion with local
vendors across Canada.
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10. Case Study: Aboriginal Engagement in Canada
• Aboriginal and treaty rights are recognized and affirmed by the Canadian Constitution
• Talisman’s approach to Aboriginal engagement is based on the principles described in our
Aboriginal Relations Guidelines
• Talisman works with Aboriginal and indigenous communities in an honest and respectful
manner to build strong relationships
• Our work with Aboriginal communities focuses on:
– Consultation and community engagement;
– Economic engagement and capacity building – e.g. Talisman entered into a business
arrangement with Black Diamond Cygnus, an equity-based partnership involving
West Moberly First Nation to supply services in Montney.
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11. Case Study: Farrell Creek Water Pipeline
Consultation Process
• A key component of our long-term water sourcing
strategy in our Farrell Creek Operations (Montney Shale
Play) of BC is the water pipeline from Williston Reservoir
to our Farrell Creek operations
• The water pipeline allows Talisman to reliably and
sustainably source water without utilizing shallow water
wells and shallower surface sources. This in turn
significantly reduces water truck traffic through Hudson’s
Hope
• Talisman received a permanent water license for Williston
Reservoir in July 2011 and completed the construction of
a permanent water intake structure and pipeline later that
year
• Talisman received all necessary approvals from the
appropriate regulating bodies, including the BC Oil and
Gas Commission (OGC) and the BC Ministry of
Environment and the Ministry of Forests, Lands and
Natural Recourse Operations
• Project received letters of support from the District of
Hudson’s Hope and a First Nations Community.
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12. Case Study: Farrell Creek Water Pipeline
Consultation Process, cont.
Key pipeline stakeholders:
• Aboriginal groups
• Landowners
• Other industries
• Non-indigenous communities
• Various levels of government
• Regulators
Map of Farrell Creek Development, Montney Shale Play, British Columbia, Canada
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13. Community engagement in Poland
• A key success factor for Talisman in Poland has been the implementation of a
community relations programme, based on our Canadian experiences, well in
advance of the start of operations
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