Gulf, Talisman and Pertamina announce record gas flow from Suban-4 well test

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), the state oil and gas company of Indonesia, announced today the results of the latest test of the Suban-4 delineation well in the Corridor Block production sharing contract (PSC) area in south Sumatra, Indonesia.

A commingled test of perforations into three sections (limestone, sandstone and pre-Tertiary granite) located between 2,234 and 2,635 metres flowed at a rate of 80 million cubic feet of natural gas per day with approximately 420 barrels of condensate per day at 2,000 pounds per square inch flowing tubing pressure through a 1 1/2-inch choke. This flow rate was restricted by the capability of the test equipment.

The gas in the latest test contained low levels of carbon dioxide similar to the 5.5 per cent encountered in the previous Suban wells, significant in that very little processing will be required to meet the sales gas specification of 5 per cent carbon dioxide.

The flow rate from the Suban-4 well broke the record for the highest flow rate of any well drilled by Gulf Indonesia in South Sumatra, surpassing the measured flow rate of the Durian Mabok-2 well, located 4 kilometres to the southeast of Suban-4. A 155 metre thick basal Tertiary limestone section in the Durian Mabok-2 well flowed 58 million cubic feet of natural gas per day with approximately 370 barrels of condensate per day at 2,900 pounds per square inch flowing tubing pressure through a 1-inch choke. This flow rate was also restricted by the capability of the test equipment.

"The results of this test and the information from the Durian Mabok-2 well demonstrate the high productivity of the Suban reservoir," said Bob Klassen, Vice President, Operations of Gulf Indonesia. "This productivity combined with the low CO(2) content means development costs to bring the gas to market could be US$1.00 per boe or lower with operating costs of less than US$0.50 per boe during the production phase."

An extended flow test is now underway on Suban-4 to provide additional information about reservoir continuity between the Suban-4 and Durian Mabok-2 wells.

The Suban-5 well, which is located approximately six kilometres to the north of Suban-4, will be spudded in the next few days and drilling is targeted to be completed by February 2001. The company is currently evaluating plans to drill three additional delineation wells at Suban during 2001 in order to help establish the size of the gas field.

"Approximately 1.1 TCF of gas from the Suban field will be dedicated to the Caltex II gas sales contract that is expected to be executed before yearend," said Bill Fanagan, President and Chief Executive Officer of Gulf Indonesia. "The completion of testing and the additional delineation drilling planned for 2001 at Suban could potentially provide an additional 3 TCF or more of gross gas reserves for the next tranche of sizable additional domestic and international gas sales contracts."

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.

Gulf Indonesia Resources Limited, headquartered in Jakarta, Indonesia, is an independent upstream oil and gas company which is traded publicly on the New York Stock Exchange under the ticker symbol GRL. The company is 72 per cent owned by Gulf Canada Resources Limited, which is a Canadian based independent exploration and production company with primary operations in Western Canada, Indonesia, the Netherlands and Ecuador. Gulf Canada's shares are traded on the Toronto and New York Stock Exchanges under the ticker symbol GOU.

Talisman Energy Inc. is the largest independent Canadian oil and gas producer with operations in Canada, the North Sea, Indonesia and Sudan. Talisman is also conducting exploration in Algeria, Trinidad and Colombia. The Company'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.

Contact:

Gulf Indonesia Resources Limited Glen Valk Manager, Investor Relations Phone: 62-21-575-4146 (Jakarta) E-mail: Glen_Valk@gulf.ca

Gulf Canada Resources Limited David Carey Director, Investor Relations Phone: 1-403-233-3427 (Calgary) E-mail: David_Carey@gulf.ca

Gulf Canada Resources Limited Peter Hunt Director, Corporate Communications Phone: 1-403-233-3040 (Calgary) E-mail: Peter_Hunt@gulf.ca

Talisman Energy Inc. David Mann Manager, Investor Relations Phone: 1-403-237-1196 (Calgary) E-mail: dmann@talisman-energy.com (*)