Gulf Indonesia, Talisman and Pertamina agree terms for additional gas deliveries to Caltex

Gulf Indonesia Resources Limited (GRL: NYSE), a 72 per cent subsidiary of Gulf Canada Resources Limited (GOU: TSE, NYSE), Talisman (Corridor) Ltd., a wholly owned subsidiary of Talisman Energy Inc. (TLM: TSE, NYSE), and Perusahaan Pertambangan Minyak Dan Gas Bumi Negara (Pertamina), Indonesia's state oil and gas company, announced today that agreement in principle has been reached on the terms for additional gas deliveries to the Duri Steamflood in central Sumatra operated by PT Caltex Pacific Indonesia (Caltex).

The terms of these agreements include a contract quantity of 1.1 trillion cubic feet (tcf) of sales gas to be delivered over 20 years and exchanged for Duri crude oil. Gas deliveries are expected to commence during 2002 at 90 million cubic feet per day (mmcf/d) increasing to 180 mmcf/d by mid-2003.

The natural gas will be supplied from the Corridor Block production-sharing contract (PSC) area in south Sumatra, Indonesia and will be delivered, after the installation of compression facilities, through the existing 544-kilometre Grissik to Duri pipeline owned and operated by PT Perusahaan Gas Negara (PGN), the Indonesian state gas distribution/transmission company.

Detailed agreements are now being finalized with execution targeted for late in the fourth quarter. The agreements will be subject to approval by Pertamina, PGN, and the respective shareholders of Caltex and the Corridor Block PSC participants.

Gas supplied under the new contract will supplement the gas that is currently being delivered from the Corridor Block PSC to the Duri Steamflood operations at rates of about 300 mmcf/d. Contract quantities under this initial agreement with Caltex will decline to 245 mmcf/d in mid-2003. Total combined gas deliveries under both contracts are expected to be 425 mmcf/d by 2003.

"This is a great deal for all parties and further strengthens the role of natural gas as a strategic resource for Indonesia," said Bill Fanagan, President and Chief Executive Officer, Gulf Indonesia. "Importantly, the deal will allow additional Indonesian crude oil exports in the future, thus providing increased foreign exchange earnings for the country."

Gulf Indonesia Resources Limited holds a 54 per cent working interest in the Corridor Block PSC and is contract operator for Pertamina. Partners are Talisman (Corridor) Ltd. with 36 per cent and Pertamina with 10 per cent.

This release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including information about the outcome of on-going contract negotiations and the results thereof. Although Gulf Indonesia and Talisman believe that their expectations are based on reasonable assumptions, these assumptions are subject to a number of risks and uncertainties, and there is no assurance the companies' objectives will be achieved.

For further information:

Gulf Indonesia Resources Limited, Glen Valk, Manager, Investor Relations, Phone: 62-21-575-4146 (Jakarta), Website: www.gulfindonesia.com;

Gulf Canada Resources Limited, David Carey, Director, Investor Relations, Phone: 1-403-233-3427 (Calgary), Website: www.gulf.ca;

Talisman Energy Inc., David Mann, Manager, Investor Relations, Phone: 1-403-237-1196 (Calgary), Website: www.talisman-energy.com; (*)