Exhibit 99.1

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

NOVEMBER 2, 2010

Talisman Energy Inc.

Consolidated Balance Sheets

(unaudited)

	September 30			December 31
(millions of C$)	2010			2009
				(restated -
Assets				note 2)
Current
Cash and cash equivalents (note 16)		2,078			1,690
Accounts receivable		1,145			1,253
Inventories		138			144
Prepaid expenses		18			9
Assets of discontinued operations (note 2)		9			58
		3,388			3,154
Other assets (note 5)		1,038			290
Goodwill (note 4)		1,186			1,176
Property, plant and equipment		17,544			16,431
Assets of discontinued operations (note 2)		513			2,567
		20,281			20,464
Total assets		23,669			23,618
Liabilities
Current
Bank indebtedness		6			36
Accounts payable and accrued liabilities		2,070			2,124
Income and other taxes payable		422			357
Current portion of long-term debt (note 8)		355			10
Future income taxes		11			68
Liabilities of discontinued operations  (note 2)		3			9
		2,867			2,604
Deferred credits		56			59
Asset retirement obligations (note 6)		2,129			2,109
Other long-term obligations (note 7)		160			168
Long-term debt (note 8)		3,350			3,770
Future income taxes		3,728			3,646
Liabilities of discontinued operations (note 2)		6			151
		9,429			9,903
Contingencies and commitments (note 15)
Shareholders' equity
Common shares, no par value (note 9)
Authorized: unlimited
Issued and outstanding:
September 2010 - 1,016,753,202 (December 2009 - 1,014,876,564)		2,405			2,374
Contributed surplus		119			153
Retained earnings		9,999			9,174
Accumulated other comprehensive loss		(1,150	)		(590	)
		11,373			11,111
Total liabilities and shareholders' equity		23,669			23,618

See accompanying notes.

1

Talisman Energy Inc.

Consolidated Statements of Income

(unaudited)

	Three months ended						Nine months ended
	September 30						September 30
(millions of C$)	2010			2009			2010			2009
				(restated -						(restated -
				note 2)						note 2)
Revenue
Gross sales		1,995			1,647			5,882			4,955
Less royalties		310			246			926			706
Net sales		1,685			1,401			4,956			4,249
Other		26			29			82			89
Total revenue		1,711			1,430			5,038			4,338
Expenses
Operating		459			455			1,393			1,394
Transportation		55			52			172			158
General and administrative		118			79			286			246
Depreciation, depletion and amortization		568			529			1,618			1,762
Dry hole		44			77			78			335
Exploration		74			75			241			202
Interest on long-term debt		37			54			119			144
Stock-based compensation (recovery) (note 10)		63			98			(23	)		249
(Gain) loss on held-for-trading financial instruments (note 11)		(54	)		(98	)		(227	)		270
Other, net (note 12)		89			(77	)		135			25
Total expenses		1,453			1,244			3,792			4,785
Income (loss) from continuing operations before taxes		258			186			1,246			(447	)
Taxes
Current income tax		235			161			631			477
Future income tax recovery		(70	)		(21	)		(186	)		(507	)
Petroleum revenue tax		25			21			80			60
		190			161			525			30
Income (loss) from continuing operations		68			25			721			(477	)
Income from discontinued operations (note 2)		53			5			231			1,025
Net income		121			30			952			548
Per common share (C$):
Income (loss) from continuing operations		0.07			0.02			0.71			(0.47	)
Diluted income (loss) from continuing operations		0.07			0.02			0.70			(0.47	)
Income from discontinued operations		0.05			0.01			0.23			1.01
Diluted income from discontinued operations		0.05			0.01			0.22			1.01
Net income		0.12			0.03			0.94			0.54
Diluted net income		0.12			0.03			0.92			0.54
Average number of common shares outstanding (millions)		1,017			1,015			1,018			1,015
Diluted number of common shares outstanding (millions)		1,035			1,035			1,036			1,015

See accompanying notes.

2

Talisman Energy Inc.

Consolidated Statements of Comprehensive Income

(unaudited)

	Three months ended September 30						Nine months ended September 30
(millions of C$)	2010			2009			2010			2009
Net income		121			30			952			548
Foreign currency - translation of self-sustaining foreign operations1		36			759			(242	)		1,389
Foreign currency - translation into reporting currency		(315	)		(1,055	)		37			(1,551	)
Transfer of accumulated foreign currency to net income (note 2)		(43	)		-			(356	)		-
Gains and losses on derivatives designated as cash flow hedges
Unrealized gains arising during the period2		8			23			6			35
Realized gains recognized in net income3		(8	)		(21	)		(5	)		(35	)
		-			2			1			-
Other comprehensive loss		(322	)		(294	)		(560	)		(162	)
Comprehensive income (loss)		(201	)		(264	)		392			386

1.  Includes net investment hedging gain/(loss) of $(13) million and $19 million for the three and nine months ended September 30, 2010 respectively (2009 - gain of $3 million and loss of $(53) million respectively)

2.  Three and nine months ended September 30, 2010 net of tax of $3 million and $2 million respectively (2009 - $7 million and $12 million respectively)

3.  Three and nine months ended September 30, 2010 net of tax of $(2) million and $(1) million respectively (2009 - $(7) million and $(12) million respectively)

See accompanying notes.

Talisman Energy Inc.

Consolidated Statements of Changes in Shareholders' Equity

(unaudited)

	Three months ended September 30						Nine months ended September 30
(millions of C$)	2010			2009			2010			2009
Common shares
Balance at beginning of period		2,426			2,374			2,374			2,372
Shares released from trust for 2008 PSU plan (note 10)		-			-			68			-
Shares purchased and held in trust for long-term PSU plan (note 10)		(24	)		-			(50	)		-
Issued on exercise of stock options		3			-			13			2
Balance at end of period		2,405			2,374			2,405			2,374
Contributed surplus
Balance at beginning of period		106			119			153			84
Stock-based compensation (note 10)		13			15			(34	)		50
Balance at end of period		119			134			119			134
Retained earnings
Balance at beginning of period		9,878			9,369			9,174			8,966
Net income		121			30			952			548
Common share dividends		-			-			(127	)		(115	)
Balance at end of period		9,999			9,399			9,999			9,399
Accumulated other comprehensive loss
Balance at beginning of period		(828	)		(140	)		(590	)		(272	)
Other comprehensive loss		(322	)		(294	)		(560	)		(162	)
Balance at end of period		(1,150	)		(434	)		(1,150	)		(434	)

See accompanying notes.

3

Talisman Energy Inc.

Consolidated Statements of Cash Flows

(unaudited)

	Three months ended						Nine months ended
	September 30						September 30
(millions of C$)	2010			2009			2010			2009
				(restated -						(restated -
				see note 2)						see note 2)
Operating
Income (loss) from continuing operations		68			25			721			(477	)
Items not involving cash (note 14)		564			660			1,230			2,992
Exploration		74			75			241			202
		706			760			2,192			2,717
Changes in non-cash working capital		95			(91	)		477			(65	)
Cash provided by continuing operations		801			669			2,669			2,652
Cash provided by discontinued operations		21			78			184			325
Cash provided by operating activities		822			747			2,853			2,977
Investing
Capital expenditures
Exploration, development and other		(1,084	)		(851	)		(2,784	)		(2,336	)
Corporate acquisitions (note 3)		-			-			(189	)		-
Property acquisitions		(66	)		(221	)		(451	)		(278	)
Proceeds of resource property dispositions		5			44			120			104
Acquisition deposit (note 3)		(638	)		-			(638	)		-
Changes in non-cash working capital		182			197			98			(157	)
Discontinued operations, net of capital expenditures		347			(32	)		1,586			1,542
Cash used in investing activities		(1,254	)		(863	)		(2,258	)		(1,125	)
Financing
Long-term debt repaid		-			(174	)		(11	)		(970	)
Long-term debt issued		-			-			-			1,249
Common shares issued		3			-			13			1
Common shares purchased		(24	)		-			(50	)		(1	)
Common share dividends		-			-			(127	)		(115	)
Deferred credits and other		(2	)		7			(12	)		14
Changes in non-cash working capital		(2	)		(1	)		(2	)		1
Cash provided by (used in) financing activities		(25	)		(168	)		(189	)		179
Effect of translation on foreign currency cash and cash equivalents		-			(73	)		(2	)		(93	)
Net increase (decrease) in cash and cash equivalents		(457	)		(357	)		404			1,938
Cash and cash equivalents net of bank indebtedness, beginning of period		2,529			2,305			1,668			10
Cash and cash equivalents net of bank indebtedness, end of period		2,072			1,948			2,072			1,948
Cash and cash equivalents (note 16)		2,078			2,007			2,078			2,007
Cash and cash equivalents reclassified to discontinued operations		-			10			-			10
Bank indebtedness		(6	)		(69	)		(6	)		(69	)
Cash and cash equivalents net of bank indebtedness, end of period		2,072			1,948			2,072			1,948

See accompanying notes.

4

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

The Interim Consolidated Financial Statements of Talisman Energy Inc. (“Talisman” or “the Company”) have been prepared by management in accordance with Canadian generally accepted accounting principles.  Certain information and disclosures required to be included in notes to Annual Consolidated Financial Statements have been condensed or omitted.  The Interim Consolidated Financial Statements should be read in conjunction with the audited Annual Consolidated Financial Statements and the notes thereto in Talisman’s Annual Report as at and for the year ended December 31, 2009.

Certain comparative information provided has been reclassified to conform to the presentation adopted in the current year.

1. Significant Accounting Policies

a) Change in Facts and Circumstances

The Interim Consolidated Financial Statements have been prepared following the same accounting policies and methods of computation as the 2009 Annual Consolidated Financial Statements, except for the following:

Foreign Currency Translation

As a result of a reorganization of the Company’s operations and changes in the composition of revenue and costs, management has determined that the functional currency of both the Canadian and Norwegian self-sustaining operations is more closely linked to the US$ than to the respective domestic currencies.  Accordingly, effective January 1, 2010, these self-sustaining operations have been accounted for as US$ functional currency entities.

b) Accounting Pronouncements Adopted

Extractive Activities – Oil and Gas

In the fourth quarter of 2009, Talisman adopted prospectively the US standard Extractive Activities – Oil and Gas whereby yearly average commodity prices are used for purposes of calculating reserves.   Previously, reserves had been calculated by reference to year-end commodity prices.   Since 2009 yearly average commodity prices were higher than 2008 year-end prices, Talisman recorded an upward value revision of 77.1 million barrels of oil equivalent to its reserves in the fourth quarter of 2009 and revised its DD&A rates accordingly.   Had year-end prices been used to calculate reserves, this would not have had a significant impact on the income from continuing operations in the three and nine month periods ended September 30, 2010.

c) Accounting Pronouncements Not Yet Adopted

International Financial Reporting Standards (IFRS)

In February 2008, the Accounting Standards Board confirmed that IFRS will be required for interim and annual reporting by publicly accountable enterprises effective for January 1, 2011, including 2010 comparative information.   The Company is currently assessing the impact of IFRS adoption on its results of operations and financial position.

5

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

2. Discontinued Operations

The assets and liabilities related to discontinued operations have been reclassified as assets or liabilities of discontinued operations on the Consolidated Balance Sheets. Operating results related to these assets and liabilities have been included in net income from discontinued operations on the Consolidated Statements of Income. Comparative period balances have been restated.

	As at September 30, 2010 and December 31, 2009
	North America				UK				Scandinavia				Other				Total
	2010		2009		2010		2009		2010		2009		2010		2009		2010		2009
Assets
Current assets		9		40		-		-		-		-		-		18		9		58
Property, plant and equipment, net		449		2,483		-		-		-		-		-		19		449		2,502
Future income taxes		50		-		-		-		-		-		-		-		50		-
Goodwill		14		62		-		-		-		-		-		3		14		65
Total assets		522		2,585		-		-		-		-		-		40		522		2,625
Liabilities
Current liabilities		3		9		-		-		-		-		-		-		3		9
Asset retirement obligations		6		72		-		-		-		-		-		1		6		73
Future income taxes		-		73		-		-		-		-		-		5		-		78
Total liabilities		9		154		-		-		-		-		-		6		9		160

	Three months ended September 30
	North America						UK				Scandinavia				Other				Total
	2010			2009			2010		2009		2010		2009		2010		2009		2010			2009
Revenue
Gross sales		38			146			-		-		-		-		-		2		38			148
Royalties		-			22			-		-		-		-		-		-		-			22
Revenues, net of royalties		38			124			-		-		-		-		-		2		38			126
Expenses
Operating, marketing and general		13			43			-		-		-		-		-		2		13			45
Dry hole		(3	)		4			-		-		-		-		-		-		(3	)		4
Depreciation, depletion and amortization		11			85			-		-		-		-		-		-		11			85
Income (loss) from discontinued operations before income taxes		17			(8	)		-		-		-		-		-		-		17			(8	)
Taxes		4			(2	)		-		-		-		-		-		-		4			(2	)
Gain on disposition, net of tax		40			-			-		11		-		-		-		-		40			11
Income (loss) from discontinued operations		53			(6	)		-		11		-		-		-		-		53			5

6

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

	Nine months ended September 30
	North America					UK				Scandinavia					Other					Total
	2010		2009			2010		2009		2010		2009			2010			2009		2010		2009
Revenue
Gross sales		289		551			-		-		-		-			7			46		296		597
Royalties		32		95			-		-		-		-			1			1		33		96
Revenues, net of royalties		257		456			-		-							6			45		263		501
Expenses
Operating, marketing and general		72		145			-		-		-		-			4			6		76		151
Dry hole		-		40			-		-		-		-			-			1		-		41
Depreciation, depletion and amortization		94		273			-		-		-		-			-			5		94		278
Income (loss) from discontinued operations before income taxes		91		(2	)		-		-		-		-			2			33		93		31
Taxes		22		(1	)		-		-		-		-			3			14		25		13
Gain (loss) on disposition, net of tax		168		433			-		482		-		(9	)		(5	)		101		163		1,007
Income (loss) from discontinued operations		237		432			-		482		-		(9	)		(6	)		120		231		1,025

North America

In the third quarter of 2010, Talisman completed the sale of oil and gas producing properties in Western Canada for proceeds of $348 million, resulting in a gain of $40 million, including a tax recovery of $34 million.  In addition, Talisman entered into an agreement to sell oil and gas producing assets in Western Canada for proceeds of approximately $340 million.  This sale is expected to be completed in the fourth quarter of 2010.

In the second quarter of 2010, Talisman completed the sale of oil and gas producing properties in Canada  for proceeds of $1.3 billion, resulting in a gain of $162 million, net of tax of $nil.

In the first quarter of 2010, Talisman entered into agreements to sell assets in Canada, resulting in an after-tax writedown of these assets of $34 million.

The net investment in the Company’s Canadian self-sustaining operations has been reduced as a result of the disposal transactions and the parent company's reduction in the net investment in the corresponding subsidiaries that have occurred in 2010 and, accordingly, $356 million of exchange gains previously accumulated in other comprehensive income were included in the carrying value of the assets used to determine the gain on disposal.

In the second quarter of 2009, Talisman completed the sale of oil and gas producing assets in Southeast Saskatchewan for proceeds of $710 million, resulting in a gain of $321 million, net of tax of $109 million and the sale of certain of its midstream assets in Western Canada for proceeds of $297 million, resulting in a gain of $55 million, net of tax of $19 million.

In the first quarter of 2009, Talisman completed the sale of oil and gas producing assets in Western Canada for proceeds of $90 million, resulting in a gain of $57 million, net of tax of $19 million.

7

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

UK

In the third quarter of 2009, Talisman received approximately $17 million of contingent consideration relating to an agreement entered into in 2007 to sell assets in the UK, resulting in a gain of $11 million, net of tax of $6 million.

In the first quarter of 2009, Talisman completed the sale of its assets in the Netherlands for proceeds of $596 million, resulting in a gain of $471 million, net of tax of $nil.

Scandinavia

In the first quarter of 2009, Talisman recorded an after-tax writedown of $9 million in respect of the sale of a 10% share in the Yme field offshore development and three exploration licences.

Other

In the first quarter of 2010, Talisman completed the sale of assets in Tunisia for proceeds of $23 million, resulting in a loss of $5 million, net of tax of $nil.

In the second quarter of 2009, Talisman completed the sale of assets in Trinidad and Tobago for proceeds of $278 million, resulting in a gain of $101 million, net of tax of $nil.

3. Acquisitions

In January 2010, Talisman acquired 100% of the share capital of Hess (Indonesia-Jambi Merang) Limited, a company which owns a 25% interest in the Jambi Merang Production Sharing Contract, for consideration of $189 million in cash. This acquisition, which facilitates Talisman’s strategy to increase its presence in Indonesia, was accounted for using the purchase method and the allocation of the purchase price to the assets and liabilities acquired is as follows:

Fair value of net assets acquired	Southeast Asia
Property, plant and equipment		170
Goodwill		37
Working capital		19
Future income tax		(37	)
		189

In August 2010, Talisman entered into an agreement to acquire a 49% interest in BP Exploration Company (Colombia) Limited for US$858 million, before a US$71 million working capital adjustment.  A cash deposit of US$613 million has been paid in connection with this transaction, which has been included within other long-term assets.

8

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

4. Goodwill

Changes in the carrying amount of the Company’s goodwill are as follows:

	Nine months ended			Year ended
	September 30, 2010			December 31, 2009
Opening balance		1,176			1,188
Acquisition (note 3)		37			-
Foreign currency translation effect		(27	)		(12	)
Closing balance1		1,186			1,176

1 At September 30, 2010, $14 million (December 31, 2009 - $65 million; January 1, 2009 - $173 million) has been reclassified to assets of discontinued operations.

Goodwill has no tax basis.

5. Other Assets

	September 30, 2010		December 31, 2009
Accrued pension asset		23		29
Fair value of derivative contracts (note 11)		83		42
Investments		80		36
Future tax assets		186		120
Note receivable (note 11)		-		43
Asset retirement sinking fund		31		15
Acquisition deposit (note 3)		630		-
Other		5		5
		1,038		290

6. Asset Retirement Obligations (ARO)

Changes in carrying amounts of the Company’s ARO associated with its property, plant and equipment are as follows:

	Nine months ended			Year ended
	September 30, 2010			December 31, 2009
ARO liability, beginning of period		2,140			1,900
Liabilities incurred during period		6			50
Liabilities settled during period		(19	)		(50	)
Accretion expense		95			117
Revisions in estimated future cash flows		3			218
Foreign currency translation		(76	)		(96	)
ARO liability, end of period1, 2		2,149			2,139

1 Included in September 30, 2010 and December 31, 2009 liabilities are $20 million and $30 million respectively of short-term reclamation costs recorded in accounts payable on the balance sheet for a net long-term ARO liability of $2,129 million and $2,109 million respectively.

2 At September 30, 2010, $6 million (December 31, 2009 - $73 million; January 1, 2009 - $131 million) has been reclassified to liabilities of discontinued operations.

9

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

7. Other Long-Term Obligations

	September 30, 2010		December 31, 2009
Accrued pension and other post-employment benefits liability		37		28
Fair value of derivative contracts (note 11)		-		7
Discounted obligations on capital leases1		90		94
Long-term portion of stock-based compensation liability		20		27
Other		13		12
		160		168

1 Of the total discounted liability of $108 million (December 31, 2009 - $113 million), $18 million (December 31, 2009 - $19 million) is included in accounts payable and accrued liabilities.

8. Long-Term Debt

	September 30, 2010			December 31, 2009
Tangguh project financing		104			106
Debentures and notes (unsecured):
US$ denominated (US$2,800 million)		2,883			2,941
C$ denominated		350			350
UK£ denominated (UK£250 million)		405			423
Gross debt		3,742			3,820
Prepaid financing costs		(37	)		(40	)
		3,705			3,780
Less: current portion		(355	)		(10	)
		3,350			3,770

9. Share Capital

Talisman’s authorized share capital consists of an unlimited number of common shares without nominal or par value and first and second preferred shares.  No preferred shares have been issued.

	Nine months ended						Year ended
Continuity of common shares	September 30, 2010						December 31, 2009
	Shares			Amount			Shares		Amount
Balance, beginning of period		1,014,876,564			2,374			1,014,708,249		2,372
Issued on exercise of options		733,319			13			168,315		2
Shares purchased and held in trust for long-term PSU plan (note 10)		(2,918,681	)		(50	)		-		-
Shares released from trust for 2008 PSU plan (note 10)		4,062,000			68			-		-
Balance, end of period		1,016,753,202			2,405			1,014,876,564		2,374

On May 5, 2010, Talisman declared a dividend of $0.125 per share (2009 – $0.1125 per share) for an aggregate dividend of $127 million (2009 – $115 million) which was paid on June 30, 2010.

Subsequent to September 30, 2010, 245,619 stock options were exercised for shares.

10

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

10. Stock-Based Compensation

Stock Option Plans

Talisman has stock option plans in place that allow for the granting of options to employees and directors. All options issued by the Company permit the holder to purchase one common share of the Company at the stated exercise price or to receive a cash payment equal to the appreciated value of the stock option.

	Nine months ended					Year ended
Continuity of stock options	September 30, 2010					December 31, 2009
	Number of Options			Weighted-average exercise price ($)		Number of Options			Weighted-average exercise price ($)
Outstanding, beginning of period		69,489,526			15.22		64,877,521			15.14
Granted		7,464,655			17.34		12,023,390			13.37
Exercised for common shares		(733,319	)		10.36		(168,315	)		5.87
Surrendered for cash payment		(2,025,952	)		10.17		(4,887,191	)		9.00
Forfeited		(2,170,432	)		17.28		(2,355,879	)		17.03
Outstanding, end of period		72,024,478			15.57		69,489,526			15.22
Exercisable, end of period		44,081,300			15.15		33,825,777			13.28

The mark-to-market liability for the stock option plans at September 30, 2010 was $194 million (December 31, 2009 - $268 million).

Subsequent to September 30, 2010, 144,295 stock options were surrendered for cash, 245,619 were exercised for shares, no options were granted and 786,514 were forfeited, with 70,848,050 outstanding at October 28, 2010.

Cash Unit Plans

In addition to the Company’s stock option plans, various subsidiaries of the Company issue stock appreciation rights under cash unit plans. Cash units are similar to stock options except that the holder does not have a right to purchase the underlying share of the Company.

	Nine months ended					Year ended
Continuity of cash units	September 30, 2010					December 31, 2009
	Number of Units			Weighted-average exercise price ($)		Number of units			Weighted-average exercise price ($)
Outstanding, beginning of period		10,078,102			16.42		9,723,082			16.52
Granted		1,061,420			17.28		1,403,650			13.23
Exercised		(267,201	)		12.11		(732,565	)		9.72
Forfeited		(248,217	)		17.60		(316,065	)		18.94
Outstanding, end of period		10,624,104			16.58		10,078,102			16.42
Exercisable, end of period		6,705,484			16.75		4,806,867			15.09

The mark-to-market liability for the cash unit plans at September 30, 2010 was $20 million (December 31, 2009 - $28 million).

Subsequent to September 30, 2010, 35,362 cash units were exercised, 35,040 were granted and 7,833 were forfeited, with 10,615,949 outstanding at October 28, 2010.

11

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

Long-Term PSU Plan

In 2009, the Company implemented a long-term PSU plan that allows for the granting of PSUs to employees and vesting to varying degrees (0–150%) subject to predetermined performance measures being achieved.  Each PSU represents the right, subject to performance, to receive one common share of the Company.

	Nine months ended			Year ended
Continuity of long-term PSU plan	September 30, 2010			December 31, 2009
	Number of units			Number of units
Outstanding, beginning of period		5,520,158			-
Granted		3,577,720			5,791,165
Forfeited		(997,468	)		(271,007	)
Outstanding, end of period		8,100,410			5,520,158

To satisfy the Company’s obligations to deliver common shares to settle the PSUs, Talisman has arranged for a third party trustee to hold common shares which were purchased on the open market.  During the nine month period ended September 30, 2010, the Company purchased 2,918,681 common shares on the open market for $50 million.  For accounting purposes, the cost of the purchase of the common shares held in trust has been accounted for as a reduction in outstanding common shares and the trust has been consolidated in accordance with Accounting Guideline 15 since it meets the definition of a variable interest entity and the Company is the primary beneficiary of the trust.  The Company is not exposed to fluctuations in the stock price in respect of the shares held in trust.  Additional purchases of common shares to satisfy the Company’s obligations are contemplated.

During the three months ended September 30, 2010, the Company recorded stock-based compensation of $10 million (2009 - $4 million) relating to its long-term PSU plan, with a corresponding increase in contributed surplus.

During the nine months ended September 30, 2010, the Company recorded stock-based compensation of $25 million (2009 - $10 million) relating to its long-term PSU plan, with a corresponding increase in contributed surplus.

Subsequent to September 30, 2010, no long-term PSUs were granted and 44,158 were forfeited, with 8,056,252 outstanding at October 28, 2010.

2008 PSU Plan

In 2008, Talisman implemented a PSU plan pursuant to which 4,158,860 PSUs were granted.  These PSUs vested on January 31, 2010 subject to predetermined performance measures being achieved.  Based on the Company’s performance relative to these predetermined performance measures, the Board of Directors approved the vesting of 90% of the PSUs granted.

To satisfy the Company’s obligation to deliver common shares to settle the PSUs, the Company established a trust that purchased 4,062,000 common shares on the open market for $68 million.  These shares were released from trust when the PSUs vested.

During the three months ended September 30, 2010, the Company recorded stock-based compensation recovery of $3 million (2009 – $13 million) relating to its 2008 PSU plan, with a corresponding change in contributed surplus.

12

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

During the nine months ended September 30, 2010, the Company recorded stock-based compensation recovery of $4 million (2009 – $28 million expense) relating to its 2008 PSU plan, with a corresponding change in contributed surplus.

Deferred Share Unit (DSU) Plan

Talisman issues DSUs to directors in lieu of cash compensation. Each DSU represents the right to receive a cash payment on retirement equal to the market value of the Company’s shares at the time of surrender. Dividends are credited as additional DSUs when paid.  At September 30, 2010, there were 427,042 DSUs outstanding (December 31, 2009 – 396,550) and the mark-to-market liability was $8 million (December 31, 2009 – $8 million).  Expense related to the DSUs is recognized in general and administrative expense on the Consolidated Statements of Income.

Restricted Share Unit (RSU) Plan

Talisman has a RSU plan that grants RSUs to eligible employees. All RSUs issued by the Company permit the holder to receive a cash payment equal to the market value of the stock. Typically, RSUs granted under the plan are paid three years after the grant date. At September 30, 2010, there were 444,857 RSUs outstanding, including dividend equivalent RSUs (December 31, 2009 – 342,730) and the mark-to-market liability was $3 million (December 31, 2009 – $3 million).

Stock-based compensation (Recovery)

For the three months ended September 30, 2010, the Company recorded stock-based compensation expense of $63 million (2009 – $98 million) in respect of the plans described above as follows: stock options - $51 million, cash units - $5 million, 2008 PSUs - $3 million recovery and long-term PSUs - $10 million expense.  The stock-based compensation recovery includes a cash payment of $4 million (2009 - $21 million) to employees in settlement of fully accrued stock-based compensation liabilities for options and cash units exercised in the period.

For the nine months ended September 30, 2010, the Company recorded stock-based compensation recovery of $23 million (2009 – $249 million expense) in respect of the plans described above as follows: stock options - $40 million recovery, cash units - $7 million recovery, 2008 PSUs - $2 million recovery and long-term PSUs - $26 million expense.

Of the combined mark-to-market liability for the stock option, cash unit, DSU and RSU plans of $225 million (December 31, 2009 - $307 million), $205 million (December 31, 2009 - $280 million) is included in accounts payable and accrued liabilities and $20 million (December 31, 2009 - $27 million) is included in other long-term obligations.

13

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

11. Financial Instruments and Risk Management

Talisman’s financial assets and liabilities at September 30, 2010 comprised cash and cash equivalents, accounts receivable, note receivable, investments, bank indebtedness, accounts payable and accrued liabilities, long-term debt, discounted obligations under capital leases and risk management assets and liabilities arising from the use of derivative financial instruments.

Fair value of Financial Assets and Liabilities

The fair value of debentures and notes is based on market quotations, which reflect the discounted present value of the principal and interest payments using the effective yield for instruments having the same term and risk characteristics.  The fair value of Talisman’s long-term debt at September 30 was $4.3 billion, while the carrying value was $3.7 billion.  The fair values of all other financial assets and liabilities approximate their carrying values.

Talisman’s processes for estimating and classifying the fair value of financial instruments are consistent with those in place at December 31, 2009.  The following table presents the Company’s material assets and liabilities measured at fair value for each hierarchy level as at September 30, 2010:

	Fair value measurements using
	Level 1 inputs		Level 2 inputs		Level 3 inputs		Total fair value
Assets
Interest rate swaps		-		51		-		51
Cross currency swaps		-		35		-		35
Commodity swaps		-		13		-		13
Commodity collars		-		81		-		81
Note receivable		-		-		39		39
		-		180		39		219
Liabilities
Commodity swaps		-		8		-		8
Commodity collars		-		59		-		59
		-		67		-		67

The following table sets forth a reconciliation of changes in the fair value of the assets classified as Level 3 in the fair value hierarchy:

	Three months ended September 30				Nine months ended September 30
	2010		2009		2010			2009
Balance at beginning of period		38		36		43			31
Realized and unrealized gains (losses)		1		2		(4	)		7
Balance at end of period		39		38		39			38

Unobservable inputs utilized to determine the fair value of the note receivable include the volatility of the counterparty’s common shares.

14

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

Risk Management Position

Derivative instrument	Balance sheet caption	September 30, 2010		December 31, 2009
Assets
Interest rate swaps	Accounts receivable		13		13
Interest rate swaps	Other assets		38		14
Cross currency swaps	Other assets		35		28
Commodity contracts	Accounts receivable		84		17
Commodity contracts	Other assets		10		-
Risk management assets			180		72

Liabilities
Cross currency swaps	Accounts payable and accrued liabilities	-	1
Commodity contracts	Accounts payable and accrued liabilities	67	275
Commodity contracts	Other long-term obligations	-	7
Risk management liabilities		67	283

For the three months ended September 30, 2010, the Company recorded a gain on held-for-trading financial instruments of $54 million (2009 – $98 million).

For the nine months ended September 30, 2010, the Company recorded a gain on held-for-trading financial instruments of $227 million (2009 – loss of $270 million).

Currency Risk

Talisman operates internationally and is therefore exposed to foreign exchange risk. Talisman’s primary exposures are from fluctuations in the US$ relative to the C$, UK£ and NOK. Although Talisman’s reporting currency is C$, its functional currency is US$, since most of its revenues are closely tied to the US$.

Talisman manages its foreign exchange exposure in a number of ways.  By denominating most of its borrowings in US$, the Company is able to reduce some of its economic exposure to currency fluctuations.  Talisman also manages its translation exposure by generally matching internal borrowings with its subsidiaries’ functional currency.  The Company purchases foreign currencies, mostly at spot value, to meet its current foreign currency obligations as they come due.  Talisman had no material outstanding foreign exchange forward contracts at September 30, 2010.

In respect of financial instruments existing at September 30, 2010, a 1% strengthening of the US$ against the other currencies to which the Company is exposed (C$, UK£ and NOK), with all other variables assumed constant, would have resulted in an increase of $1 million in net income and $12 million in other comprehensive income for the three month period ended September 30, 2010.  A similar weakening of the US$ would have had the opposite impact.

15

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

Interest Rate Risk

Talisman is exposed to interest rate risk principally by virtue of its borrowings.  Borrowing in floating rates exposes Talisman to short-term movements in interest rates.  Borrowing in fixed rates exposes Talisman to mark-to-market interest rate risk as well as reset risk (i.e. at debt maturity).

In order to mitigate its exposure to interest rate changes, Talisman enters into interest rate swaps from time to time to manage the ratio of fixed rate debt to floating rate debt.  At September 30, 2010, the Company had fixed-to-floating interest rate swap contracts with a total notional amount of US$300 million that expire on May 15, 2015.  During the nine month period ended September 30, 2010, the fair value of the fixed-to-floating interest rate swaps increased by $24 million.  Starting in the fourth quarter of 2008, the Company no longer designated the swap as a hedge.

In respect of financial instruments existing at September 30, 2010, a 1% increase in interest rates would have resulted in a $8 million decrease in net income, principally related to the fair value of the interest rate swap, for the three month period ended September 30, 2010.  A similar decrease in interest rates would have had the opposite effect.

Credit Risk

A significant proportion of Talisman’s accounts receivable balance is with customers in the oil and gas industry and is subject to normal industry credit risks.  At September 30, 2010, approximately 88% of the Company’s trade accounts receivable were current.  Talisman had no customers with individually significant outstanding balances at September 30, 2010. Concentration of credit risk is mitigated by having a broad domestic and international customer base.  The maximum credit exposure associated with accounts receivable is the carrying value.

Liquidity Risk

Talisman is exposed to liquidity risk, which is the risk that the Company may be unable to generate or obtain sufficient cash to meet its commitments as they come due. Talisman mitigates this risk through its management of cash, debt, committed credit capacity and its capital program.

Talisman maintains appropriate undrawn capacity in its revolving credit facilities to meet short-term fluctuations from forecasted results. Talisman manages its liquidity requirements by use of both short-term and long-term cash forecasts, and by maintaining appropriate undrawn capacity under committed bank lines.

The majority of the Company's debt matures subsequent to 2011, with $355 million maturing in 2011.

At September 30, 2010, the Company had not drawn against its available $2.8 billion of bank lines of credit, which are all fully committed through 2012.  These maturity dates may be extended from time to time by agreement between the Company and the respective lenders.

Commodity Price Risk

The Company had the following commodity price derivative contracts outstanding at September 30, 2010:

16

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

Fixed price swaps	Term	mcf/d		C$/mcf		Fair value
ICE index	Oct-Dec 2010		17,824		6.73		(2	)
ICE index	Jan-Mar 2011		17,824		6.73		(3	)
ICE index	Apr-Jun 2011		16,886		6.13		(3	)
							(8	)

Fixed price swaps	Term	mcf/d		US$/mcf		Fair value
NYMEX index	Jan-Dec 2011		23,734		6.12		13

Two-way collars	Term	bbls/d		Floor/ceiling US$/bbl		Fair value
Dated Brent oil index	Oct-Dec 2010		5,000		49.00/57.79		(12	)
Dated Brent oil index	Oct-Dec 2010		23,000		55.35/85.00		(3	)
Dated Brent oil index	Oct-Dec 2010		25,000		71.72/90.00		-
WTI	Oct-Dec 2010		22,000		50.20/60.87		(44	)
							(59	)

Two-way collars	Term	mcf/d		Floor/ceiling C$/mcf		Fair value
AECO index	Oct-Dec 2010		47,410		5.78/7.39		9

Two-way collars	Term	mcf/d		Floor/ceiling US$/mcf		Fair value
NYMEX index	Oct-Dec 2010		95,000		5.90/7.03		16
NYMEX index	Jan-Jun 2011		95,000		5.27/6.66		16
NYMEX index	Jan-Dec 2011		71,200		6.14/6.59		40
							72

Subsequent to September 30, 2010, the Company entered into the following commodity price derivative contracts:

Contract	Term	Average volume	Average price or floor/ceiling
Dated Brent oil collars	Jan-Dec 2011	21,000 bbls/d	US$80.00/91.27
Dated WTI oil collars	Jan-Dec 2011	9,000 bbls/d	US$80.00/92.00

In respect of outstanding financial instruments and assuming forward commodity prices in existence at September 30, 2010, an increase of US$1/bbl in the price of oil and $0.10/mcf in the price of natural gas would have reduced the net fair value of commodity derivatives thereby resulting in a decrease in net income of approximately $10 million for the three month period ended September 30, 2010.  A similar decrease in commodity prices would result in an increase in net income of approximately $11 million for the three month period ended September 30, 2010.

17

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

The Company may hedge a portion of its future production to protect cash flows to allow the Company to meet its strategic objectives.

Physical Commodity Contracts

The Company enters into fixed price sales contracts for the physical delivery of commodities. These contracts are entered into in the regular course of business and are intended to be settled by delivering the product. As such, the fair value of these contracts is not recognized in the Consolidated Financial Statements and future revenues are recognized in net income as earned over the term of the contract.  The Company anticipates having sufficient future production to meet these fixed price sales contract commitments.

The Company had the following physical commodity contracts outstanding at September 30, 2010:

Contract	Term	Average volume	Average price or floor/ceiling
AECO natural gas swaps	Oct-Dec 2010	14,223 mcf/d	C$6.33/mcf
AECO natural gas collars	Oct-Dec 2010	175,417 mcf/d	C$6.33/7.55/mcf
AECO natural gas swaps	Oct 2010-Dec 2011	3,671 mcf/d	C$3.05/mcf

12. Other Expenses, net

	Three months ended September 30						Nine months ended September 30
	2010			2009			2010			2009
Foreign exchange (gains) losses		79			(75	)		41			26
Net gain on asset disposals		(12	)		(20	)		(53	)		(16	)
Property impairments		-			-			118			-
Other		22			18			29			15
		89			(77	)		135			25

During the nine month period ended September 30, 2010, the Company wrote-off exploration acquisition costs in North America, Scandinavia and Rest of the World of $27 million, $66 million and $25 million respectively.

13. Employee Benefits

	Three months ended September 30						Nine months ended September 30
	2010			2009			2010			2009
Current service cost - defined benefit		6			5			20			13
Current service cost - defined contribution		3			3			11			11
Interest cost		4			3			13			12
Expected return on plan assets		(3	)		(2	)		(9	)		(6	)
Actuarial gain (loss)		-			-			(1	)		1
		10			9			34			31

18

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

14. Selected Cash Flow Information

	Three months ended September 30						Nine months ended September 30
	2010			2009			2010			2009
Items not involving cash:
Depreciation, depletion and amortization		568			529			1,618			1,762
Dry hole		44			77			78			335
Net gain on asset disposals		(12	)		(20	)		(53	)		(16	)
Property impairments		-			-			118			-
Stock-based compensation (recovery)		53			70			(34	)		198
Future taxes and deferred petroleum revenue tax recovery		(65	)		(19	)		(186	)		(484	)
Mark-to-market change of held-for-trading financial instruments		(93	)		31			(351	)		1,168
Other		69			(8	)		40			29
		564			660			1,230			2,992
Interest paid		41			59			121			142
Income taxes paid		221			308			553			705

15. Contingencies and Commitments

Contingencies

From time to time, Talisman is the subject of litigation arising out of the Company’s operations. Damages claimed under such litigation, including the litigation discussed below may be material or may be indeterminate and the outcome of such litigation may materially impact the Company’s financial condition or results of operations. While Talisman assesses the merits of each lawsuit and defends itself accordingly, the Company may be required to incur significant expenses or devote significant resources to defending itself against such litigation. These claims are not currently expected to have a material impact on the Company’s financial position.

In September 2006, the United States District Court for the Southern District of New York (the “Court”) granted Talisman’s Motion for Summary Judgment, dismissing the lawsuit brought against Talisman by the Presbyterian Church of Sudan and others under the Alien Tort Claims Act. The lawsuit alleged that the Company conspired with, or aided and abetted, the Government of Sudan to commit violations of international law in connection with the Company’s now disposed of interest in oil operations in Sudan. The plaintiffs have twice attempted to certify the lawsuit as a class action. In March 2005 and in September 2005, the Court rejected the plaintiffs’ effort to certify two different classes (or groups) of plaintiffs. In October 2009, the Second Circuit Court of Appeals dismissed the plaintiff’s appeal of the Court’s decision granting Talisman’s Motion for Summary Judgment, denying class certification and refusing to consider the plaintiff’s proposed third amended complaint.  On April 15, 2010 the plaintiffs requested the United States Supreme Court to permit an appeal by the plaintiffs of the Second Circuit Court of Appeals decision that dismissed their appeal.  On October 4, 2010, the United States Supreme Court refused to grant the plaintiffs’ appeal request.  Accordingly, the action has now been resolved in the Company’s favour.

Commitments

There have been no significant changes in the Company’s expected future payment commitments, and the timing of those payments, since December 31, 2009.

19

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

16. Cash and Cash Equivalents

Of the cash and cash equivalents balance of $2.1 billion, arising largely from the disposition of assets during 2009 and 2010, $226 million has been invested in bank deposits and the remainder in highly rated marketable securities with maturities of less than three months.

17. Subsequent Events

In October 2010, Talisman and Statoil Texas Onshore Properties LLC (“Statoil”) entered into an agreement to acquire 97,000 net acres of liquids rich properties in the Eagle Ford shale play in south Texas from Enduring Resources, LLC for a total consideration of US$1.3 billion, which results in a net cost to Talisman of approximately US$485 million, after Statoil purchases a 50% working interest in Talisman’s existing 37,000 net acres in the Eagle Ford. Upon completion of these transactions, Talisman will hold approximately 70,000 net acres, predominantly in the liquids rich heart of the play.  Talisman and Statoil have created a joint-venture across the Eagle Ford shale play, with Talisman as the initial operator.

On October 5, 2010, Talisman declared a semi-annual dividend of $0.125 per share which will be paid on December 31, 2010.

20

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

18. Segmented Information

	North America (1)												UK								Scandinavia
	Three months ended September 30						Nine months ended September 30						Three months ended September 30				Nine months ended September 30				Three months ended September 30					Nine months ended September 30
(millions of C$)	2010			2009			2010			2009			2010		2009		2010		2009		2010		2009			2010		2009
Revenue
Gross sales		408			321			1,223			1,016			526		484		1,590		1,606		363		224			1,014		678
Royalties		57			36			140			115			1		1		5		4		-		-			-		-
Net sales		351			285			1,083			901			525		483		1,585		1,602		363		224			1,014		678
Other		19			22			66			69			7		6		15		17		-		-			-		2
Total revenue		370			307			1,149			970			532		489		1,600		1,619		363		224			1,014		680
Segmented expenses
Operating		100			92			309			310			203		226		638		655		77		79			227		215
Transportation		13			18			46			44			7		10		25		33		17		11			49		36
DD&A		199			188			562			564			142		165		420		618		133		77			375		266
Dry hole		3			29			(14	)		120			24		-		63		30		-		(2	)		5		61
Exploration		1			30			35			65			4		6		13		13		6		4			21		16
Other		(6	)		(15	)		(5	)		(25	)		1		11		1		6		4		1			68		5
Total segmented expenses		310			342			933			1,078			381		418		1,160		1,355		237		170			745		599
Segmented income (loss) before taxes		60			(35	)		216			(108	)		151		71		440		264		126		54			269		81
Non-segmented expenses
General and administrative
Interest on long-term debt
Stock-based compensation (recovery)
Currency translation
(Gain) loss on held-for-trading financial instruments
Total non-segmented expenses
Income (loss) from continuing operations before taxes
Capital expenditures
Exploration		70			253			221			439			34		40		74		130		23		11			76		139
Development		447			83			959			139			154		135		397		425		128		136			408		384
Midstream		-			(2	)		1			28			-		-		-		-		-		-			-		-
Exploration and development		517			334			1,181			606			188		175		471		555		151		147			484		523
Property acquisitions
Proceeds on dispositions
Other non-segmented
Net capital expenditures
Property, plant and equipment								6,920			6,155							4,390		4,549							2,251		2,040
Goodwill								146			149							276		289							618		628
Other								2,710			1,240							275		386							451		226
Discontinued operations								522			2,585							-		-							-		-
Segmented assets								10,298			10,129							4,941		5,224							3,320		2,894
Non-segmented assets
Total assets (4)
													(1) North America									2010		2009			2010		2009
													Canada									274		279			925		882
													US									96		28			224		88
													Total revenue									370		307			1,149		970
													Canada														4,901		4,993
													US														2,019		1,162
													Property, plant and equipment (4)														6,920		6,155
													4 Current year represents balances as at September 30, prior year represents balances as at December 31.

21

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(tabular amounts in millions of Canadian dollars (“$”) except as noted)

18. Segmented Information

	Southeast Asia (2)								Other (3)												Total
	Three months ended September 30				Nine months ended September 30				Three months ended September 30						Nine months ended September 30						Three months ended September 30						Nine months ended September 30
(millions of C$)	2010		2009		2010		2009		2010			2009			2010			2009			2010			2009			2010			2009
Revenue
Gross sales		600		555		1,773		1,375		98			63			282			280			1,995			1,647			5,882			4,955
Royalties		203		189		632		466		49			20			149			121			310			246			926			706
Net sales		397		366		1,141		909		49			43			133			159			1,685			1,401			4,956			4,249
Other		-		-		1		-		-			1			-			1			26			29			82			89
Total revenue		397		366		1,142		909		49			44			133			160			1,711			1,430			5,038			4,338
Segmented expenses
Operating		72		54		199		185		7			4			20			29			459			455			1,393			1,394
Transportation		16		11		46		39		2			2			6			6			55			52			172			158
DD&A		87		93		240		285		7			6			21			29			568			529			1,618			1,762
Dry hole		11		40		4		90		6			10			20			34			44			77			78			335
Exploration		20		16		65		44		43			19			107			64			74			75			241			202
Other		10		3		29		3		1			(2	)		1			10			10			(2	)		94			(1	)
Total segmented expenses		216		217		583		646		66			39			175			172			1,210			1,186			3,596			3,850
Segmented income (loss) before taxes		181		149		559		263		(17	)		5			(42	)		(12	)		501			244			1,442			488
Non-segmented expenses
General and administrative																						118			79			286			246
Interest on long-term debt																						37			54			119			144
Stock-based compensation (recovery)																						63			98			(23	)		249
Currency translation																						79			(75	)		41			26
(Gain) loss on held-for-trading financial instruments																						(54	)		(98	)		(227	)		270
Total non-segmented expenses																						243			58			196			935
Income (loss) from continuing operations before taxes																						258			186			1,246			(447	)
Capital expenditures
Exploration		58		54		135		179		47			39			156			156			232			397			662			1,043
Development		69		78		222		364		26			12			76			24			824			444			2,062			1,336
Midstream		-		-		-		-		-			-			-			-			-			(2	)		1			28
Exploration and development		127		132		357		543		73			51			232			180			1,056			839			2,725			2,407
Property acquisitions																						64			227			655			322
Proceeds on dispositions																						(50	)		(44	)		(201	)		(143	)
Other non-segmented																						19			11			48			34
Net capital expenditures																						1,089			1,033			3,227			2,620
Property, plant and equipment						3,065		2,864								918			823									17,544			16,431
Goodwill						146		110								-			-									1,186			1,176
Other						572		427								206			156									4,214			2,435
Discontinued operations						-		-								-			40									522			2,625
Segmented assets						3,783		3,401								1,124			1,019									23,466			22,667
Non-segmented assets																												203			951
Total assets (4)																												23,669			23,618
									(2) Southeast Asia													2010			2009			2010			2009
									Indonesia													220			187			662			491
									Malaysia													130			115			370			266
									Vietnam													11			25			42			78
									Australia													36			39			68			74
									Total revenue													397			366			1,142			909
									Indonesia																			1,089			906
									Malaysia																			1,125			1,171
									Vietnam																			273			241
									Papua New Guinea																			369			337
									Australia																			209			209
									Property, plant and equipment (4)																			3,065			2,864
									(3) Other													2010			2009			2010			2009
									Algeria													49			44			133			160
									Total revenue													49			44			133			160
									Algeria																			246			193
									Kurdistan																			532			512
									Other																			140			118
									Property, plant and equipment (4)																			918			823

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