KUALA LUMPUR, MALAYSIA--(Marketwire - Oct. 28, 2009) - Talisman Energy Inc. (TSX:TLM) (NYSE:TLM), through its wholly owned subsidiary, Talisman Malaysia Limited ("Talisman Malaysia"), has signed a Production Sharing Contract (PSC) with Petroliam Nasional Berhad (PETRONAS) and Petronas Carigali Sdn Bhd, its wholly owned subsidiary, for the exploration and development of Blocks SB309 and SB310 offshore Sabah. Talisman will hold a 70% participating interest in each block and is the designated operator.

Under the terms of the PSC, Talisman has agreed to spend a minimum of US$2 million on secondment training initiatives for each block in addition to the seismic and drilling commitments which cover a period of 6 Years.

"These blocks open an exciting new chapter for Talisman in Malaysia," said Paul Blakeley, Executive Vice-President, International Operations East. "The blocks provide Talisman Malaysia over 13,000 square kilometres of highly prospective shallow water acreage in a proven petroleum system. This venture supports our strategic objective of looking for material, low cost, international exploration opportunities."

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. The Company is a participant in the United Nations Global Compact and included in the Dow Jones Sustainability (North America) Index. Talisman's shares are listed on the Toronto Stock Exchange in Canada and the New York Stock Exchange in the United States under the symbol TLM.