Repsol Oil & Gas Canada (TLM) 6-K Talisman Energy Inc. 6-K

Exhibit 99.1

TALISMAN ENERGY INC.

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED JUNE 30, 2015

(Unaudited)

Condensed Consolidated Balance Sheets

(Unaudited)
	June 30,		December 31,
(millions of US$)	2015		2014
Assets
Current
Cash and cash equivalents (note 23)		168		262
Accounts receivable		526		893
Risk management (note 17)		-		850
Income and other taxes receivable		82		80
Restricted cash (note 9)		-		149
Inventories		132		133
Prepaid expenses		22		34
Assets held for sale (notes 4 and 9)		1,530		-
		2,460		2,401
Other assets (note 8)		175		180
Investments (note 6)		613		604
Risk management (note 17)		-		421
Goodwill (note 7)		279		279
Property, plant and equipment (note 10)		8,654		9,064
Exploration and evaluation assets (note 10)		2,488		2,544
Deferred tax assets		563		1,837
		12,772		14,929
Total assets		15,232		17,330
Liabilities
Current
Bank indebtedness		5		9
Accounts payable and accrued liabilities		1,031		1,577
Current portion of Yme removal obligation (note 9)		-		186
Obligation to fund equity investee (note 6)		145		186
Risk management (note 17)		-		2
Income and other taxes payable		75		93
Loans from related parties (note 14)		831		-
Loans from joint ventures (note 6)		74		15
Current portion of long-term debt (note 14)		156		1,109
Liabilities associated with assets held for sale (notes 4 and 9)		1,483		-
		3,800		3,177
Decommissioning liabilities (note 12)		967		1,885
Other long-term obligations (note 15)		222		273
Long-term debt (note 14)		3,807		3,955
Deferred tax liabilities		857		635
		5,853		6,748
Contingencies and commitments (note 18)
Shareholder's equity
Common shares (note 16)		1,992		1,738
Preferred shares (note 16)		-		191
Contributed surplus		86		176
Retained earnings		2,690		4,489
Accumulated other comprehensive income		811		811
		5,579		7,405
Total liabilities and shareholder's equity		15,232		17,330
See accompanying notes.

1

Condensed Consolidated Statements of Income (Loss)

(Unaudited)	Three months ended						Six months ended
	June 30,						June 30,
(millions of US$)	2015			2014			2015			2014
				(restated)						(restated)
Revenue
Sales		617			1,141			1,221			2,264
Other income (note 19)		41			30			81			77
Loss from joint ventures, after tax (note 6)		(107	)		(37	)		(314	)		(31	)
Total revenue and other income		551			1,134			988			2,310
Expenses
Operating		193			280			444			543
Transportation		40			39			90			81
General and administrative		83			103			167			205
Depreciation, depletion and amortization		379			430			790			822
Impairment, net of reversals (note 11)		-			(32	)		48			(32	)
Dry hole		-			11			13			28
Exploration		98			44			122			83
Finance costs (note 13)		79			83			163			166
Share-based payments expense (recovery) (note 16)		(19	)		23			(24	)		(9	)
(Gain) loss on held-for-trading financial instruments (note 17)		131			171			(62	)		231
(Gain) loss on disposals (note 5)		4			5			9			(554	)
Other, net (note 20)		130			37			146			44
Total expenses		1,118			1,194			1,906			1,608
Income (loss) from continuing operations before taxes		(567	)		(60	)		(918	)		702
Income taxes (note 21)
Current income tax		65			134			135			265
Deferred income tax		256			13			232			63
		321			147			367			328
Net loss from continuing operations		(888	)		(207	)		(1,285	)		374
Discontinued operations
Net loss from discontinued operations (note 4)		(364	)		(30	)		(406	)		(120	)
Net income (loss)		(1,252	)		(237	)		(1,691	)		254
Per common share (US$):
Net income (loss) from continuing operations		(0.85	)		(0.20	)		(1.24	)		0.36
Net loss from discontinued operations		(0.35	)		(0.03	)		(0.39	)		(0.12	)
Net income (loss)		(1.20	)		(0.23	)		(1.63	)		0.24
Diluted net income (loss) from continuing operations		(0.89	)		(0.21	)		(1.28	)		0.31
Diluted net loss from discontinued operations		(0.35	)		(0.03	)		(0.39	)		(0.12	)
Diluted net income (loss)		(1.24	)		(0.24	)		(1.67	)		0.19
Weighted average number of common shares outstanding (millions)
Basic		1,041			1,034			1,037			1,033
Diluted		1,041			1,034			1,037			1,039
See accompanying notes.

2

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)
	Three months ended						Six months ended
	June 30,						June 30,
(millions of US$)	2015			2014			2015			2014
Net income (loss)		(1,252	)		(237	)		(1,691	)		254
Actuarial gains (losses) relating to pension and other post-employment benefits1		9			(3	)		11			(3	)
Other comprehensive income (loss) not being reclassified to net income or loss in subsequent periods		9			(3	)		11			(3	)
Comprehensive income (loss)		(1,243	)		(240	)		(1,680	)		251
1. For the three and six months ended June 30, 2015, amount is net of tax of $nil and $nil respectively (2014 - $1 million and $1 million respectively).
See accompanying notes.

3

Condensed Consolidated Statements of Changes in Shareholder’s Equity

(Unaudited)	Three months ended						Six months ended
	June 30,						June 30,
(millions of US$)	2015			2014			2015			2014
Common shares (note 16)
Balance at beginning of period		1,794			1,759			1,738			1,723
Issued on exercise of stock options		-			-			-			5
Converted from preferred shares		195			-			195			-
Shares purchased and held in trust for long-term PSU plan		-			-			(30	)		-
Shares previously held in trust sold on open market		3			-			3			-
Shares released from trust for long-term PSU plan		-			-			86			31
Balance at end of period		1,992			1,759			1,992			1,759
Preferred shares (note 16)
Balance at beginning of period		191			191			191			191
Converted to common shares		(191	)		-			(191	)		-
Balance at end of period		-			191			-			191
Contributed surplus
Balance at beginning of period		95			114			176			135
Preferred shares conversion difference		(4	)		-			(4	)		-
Settlement of long-term PSU plan grant		(18	)		-			(104	)		(31	)
Share-based payments		13			10			18			20
Balance at end of period		86			124			86			124
Retained earnings
Balance at beginning of period		4,050			6,114			4,489			5,695
Net income (loss)		(1,252	)		(237	)		(1,691	)		254
Actuarial gains (losses) transferred to retained earnings		9			(3	)		11			(3	)
Common share dividends (note 16)		(117	)		(70	)		(117	)		(140	)
Preferred share dividends (note 16)		-			(2	)		(2	)		(4	)
Balance at end of period		2,690			5,802			2,690			5,802
Accumulated other comprehensive income
Balance at beginning of period		811			811			811			811
Other comprehensive income (loss)		9			(3	)		11			(3	)
Transfer of accumulated foreign currency loss to net income		-			-			-			-
Actuarial losses (gains) transferred to retained earnings		(9	)		3			(11	)		3
Balance at end of period		811			811			811			811
See accompanying notes.

4

Condensed Consolidated Statements of Cash Flows

(Unaudited)	Three months ended						Six months ended
	June 30,						June 30,
(millions of US$)	2015			2014			2015			2014
				(restated)						(restated)
Operating activities
Net income (loss) from continuing operations		(888	)		(207	)		(1,285	)		374
Add: Finance costs (cash and non-cash) (note 13)		79			83			163			166
Items not involving cash (note 22)		1,732			637			2,699			513
		923			513			1,577			1,053
Changes in non-cash working capital		113			(212	)		23			(255	)
Cash provided by operating activities from continuing operations		1,036			301			1,600			798
Investing activities
Capital expenditures
Exploration, development and other		(224	)		(433	)		(496	)		(928	)
Property acquisitions		(8	)		-			(8	)		-
Proceeds of resource property dispositions (note 5)		-			52			-			1,392
Loan to joint venture, net of repayments (note 6)		-			(178	)		-			(350	)
Investment in joint ventures (note 6)		(199	)		-			(362	)		-
Changes in non-cash working capital		(39	)		(51	)		(228	)		(5	)
Cash provided by (used in) investing activities from continuing operations		(470	)		(610	)		(1,094	)		109
Financing activities
Long-term debt repaid (note 14)		(1,209	)		(2	)		(1,558	)		(879	)
Long-term debt issued (note 14)		-			315			452			315
Loans from (repayments to) joint ventures (note 6)		39			-			59			18
Loans from related parties (note 14)		831			-			831			-
Common shares issued (note 16)		-			-			-			4
Common shares purchased (note 16)		-			-			(30	)		-
Common shares held in trust sold (note 16)		3			-			3			-
Finance costs (cash)		(72	)		(76	)		(150	)		(152	)
Common share dividends (note 16)		(117	)		(70	)		(117	)		(140	)
Preferred share dividends (note 16)		-			(2	)		(2	)		(4	)
Deferred credits and other		(23	)		(6	)		(30	)		1
Changes in non-cash working capital		(9	)		(3	)		10			13
Cash provided by (used in) financing activities from continuing operations		(557	)		156			(532	)		(824	)
Effect of translation on foreign currency cash and cash equivalents		2			2			1			6
Cash provided by (used in) operating activities from discontinued operations (note 4)		(16	)		64			(24	)		37
Cash used in investing activities from discontinued operations (note 4)		(9	)		(76	)		(37	)		(125	)
Net increase (decrease) in cash and cash equivalents		(14	)		(163	)		(86	)		1
Cash and cash equivalents net of bank indebtedness, beginning of period		181			515			253			351
Cash and cash equivalents net of bank indebtedness, end of period		167			352			167			352
Cash and cash equivalents		168			356			168			356
Bank indebtedness		(5	)		(4	)		(5	)		(4	)
Cash and cash equivalents from discontinued operations (note 4)		4			-			4			-
Cash and cash equivalents net of bank indebtedness, end of period		167			352			167			352
See accompanying notes.

5

Notes to the Interim Condensed Consolidated Financial Statements

(Unaudited)

(tabular amounts in millions of US dollars, except as noted)

1. CORPORATE INFORMATION

Talisman Energy Inc. ("Talisman" or "the Company") is a company incorporated pursuant to the laws of Canada and domiciled in Alberta, Canada. Talisman’s common shares are wholly owned by a subsidiary of Repsol S.A (“Repsol”).  Talisman continues to be a reporting issuer in each of the jurisdictions of Canada. Its registered office is located at Suite 2000, 888 – 3rd Street SW, Calgary, Alberta, Canada, T2P 5C5.

The Company is in the business of exploration, development, production and marketing of crude oil, natural gas and natural gas liquids (NGLs).

The interim condensed Consolidated Financial Statements as at and for the three and six month periods ended June 30, 2015 were approved by the Audit Committee on July 27, 2015.

Repsol Acquisition of Talisman

On May 8, 2015, the acquisition of Talisman by Repsol, by the way of an arrangement under the Canada Business Corporations Act, was completed. Repsol acquired all of the Company’s outstanding common and preferred shares. Upon the completion of the arrangement, the common shares were delisted from the Toronto Stock Exchange and the New York Stock Exchange, and the preferred shares were delisted from the Toronto Stock Exchange and converted into common shares on a 1:1 basis (note 16).

2. BASIS OF PREPARATION

These interim condensed Consolidated Financial Statements have been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting as issued by the International Accounting Standards Board (IASB). Certain information and disclosures required to be included in notes to annual Consolidated Financial Statements prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations of the International Financial Reporting Interpretations Committee (IFRIC), as issued by the IASB, have been condensed or omitted.

The interim condensed Consolidated Financial Statements should be read in conjunction with the audited annual Consolidated Financial Statements of Talisman as at and for the year ended December 31, 2014 and the notes thereto.

These interim condensed Consolidated Financial Statements were prepared on a going concern basis, under the historical cost convention, except for certain financial assets and liabilities measured at fair value through the condensed Consolidated Statement of Income (Loss).

6

3. SIGNIFICANT ACCOUNTING POLICIES

a) Accounting Policies Used

The interim condensed Consolidated Financial Statements have been prepared following the same accounting policies and methods of computation as the audited annual Consolidated Financial Statements as at and for the year ended December 31, 2014, except for adoption of the following new standards and interpretations effective as of January 1, 2015:

Employee Benefits

· IAS 19 Employee Benefits - Amendments to IAS 19. The amended standard clarified the requirements that relate to how contributions from employees or third parties that are linked to service should be attributed to periods of service. In addition, it permits a practical expedient if the amount of the contributions is independent of the number of years of service, in that contributions can be, but are not required to be recognized as a reduction in the service cost in the period in which the related service is rendered. The amendment is effective for annual periods beginning on or after July 1, 2014. Application of the amended standard does not have an impact on the Company’s financial statements as it reflects current accounting policy of the Company.

Operating Segments

· IFRS 8 Operating Segments - Amendments to IFRS 8. The amended standard requires (i) disclosure of judgments made by management in aggregating segments, and (ii) a reconciliation of segmented assets to the Company’s assets when segment assets are reported. The amendment is effective for annual periods beginning on or after July 1, 2014. The amendment does not have an impact on the Company’s financial position or performance.

Share-based Payments

· IFRS 2 Share-Based Payments - Amendments to IFRS 2. The standard amends the definitions of “vesting condition” and “market condition” and adds definitions for “performance condition” and “service condition”. The amendment is effective for annual periods beginning on or after July 1, 2014. The amendment does not have an impact on the Company as it reflects current accounting policy of the Company.

Fair Value Measurement

· IFRS 13 Fair Value Measurement - Amendments to IFRS 13. The amended standard clarifies that short-term receivables and payables with no stated interest rates can be measured at invoice amounts if the effect of discounting is immaterial. It also clarifies that the portfolio exception can be applied not only to financial assets and liabilities, but also to other contracts within scope of IAS 39 and IFRS 9. The amendment is effective for annual periods beginning on or after July 1, 2014. The application does not have a significant impact on the Company’s financial statements.

Related Parties

· IAS 24 Related Parties - Amendments to IAS 24. The amended standard (i) revises the definition of related party to include an entity that provides key management personnel services to the reporting entity or its parent, and (ii) clarifies related disclosure requirements. The amendment does not have an impact on the Company’s financial statements, as there is no entity performing key management services for the Company.

7

b) Accounting Pronouncements Not Yet Adopted

The Company continues to assess the impact of adopting the pronouncements from the IASB as described below:

Financial Instruments

· IFRS 9 Financial Instruments. IFRS 9 (July 2014) replaces earlier versions of IFRS 9 that had not yet been adopted by the Company and supersedes IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 introduces new models for classification and measurement of financial instruments, hedge accounting and impairment of financial assets and is mandatorily effective for periods beginning on or after January 1, 2018. The Company continues to review the standard as it is updated and monitor its impact on the Company’s financial statements.

Revenue from Contracts with Customers

· IFRS 15 Revenue from Contracts with Customers. IFRS 15 specifies that revenue should be recognized when an entity transfers control of goods or services at the amount the entity expects to be entitled to as well as requiring entities to provide users of financial statements with more informative, relevant disclosures. The standard supersedes IAS 18 Revenue, IAS 11 Construction Contracts, and a number of revenue-related interpretations. IFRS 15 will be effective for annual periods beginning on or after January 1, 2017. In an exposure draft in May 2015, the effective date of IFRS 15 was proposed to be deferred to January 1, 2018. Application of the standard is mandatory and early adoption is permitted. The Company has not yet determined the impact of the standard on the Company’s financial statements.

4. DISCONTINUED OPERATIONS

During the three month period ended June 30, 2015, Talisman and Repsol entered into a purchase and sale agreement whereby Repsol will acquire substantially all of the assets and liabilities of Talisman’s Norwegian operations (the “Disposal Group”) for proceeds of $47 million including working capital. The transaction is expected to close prior to September 30, 2015.

The assets and liabilities included in the Disposal Group have been reclassified as current assets or liabilities held for sale on the condensed Consolidated Balance Sheets. Operating results related to the Disposal Group have been included in net loss from discontinued operations in the condensed Consolidated Statements of Income. Comparative period balances of the condensed Consolidated Statements of Income and Cash Flows have been restated. The Disposal Group was remeasured to its recoverable amount of $47 million at June 30, 2015 and as a result, a loss of $472 million pre-tax ($292 million after-tax) was recorded in Norway. A $112 million foreign exchange gain relating to the Disposal Group has been recognized in accumulated other comprehensive income in Shareholder’s Equity at June 30, 2015 and will be recognized in earnings upon disposition.

8

Assets and liabilities associated with the Disposal Group as at June 30, 2015 are as follows:

	June 30, 2015
Assets
Cash		4
Restricted cash (note 9)		91
Accounts receivable		55
Income and other taxes receivable		4
Inventories		28
Prepaid expenses		5
Deferred tax assets		1,337
Other assets		6
Assets held for sale		1,530
Liabilities
Accounts payable and accrued liabilities		117
Yme removal obligation (note 9)		128
Decommissioning liabilities (note 12)		1,215
Other long term obligations		23
Liabilities associated with assets held for sale		1,483

Net loss from discontinued operations reported on the condensed Consolidated Statements of Income (Loss) is composed of the following:

Three months ended June 30	2015			2014
Revenue		83			108
Expenses		(289	)		(211	)
		(206	)		(103	)
Loss on remeasurement of discontinued operations		(472	)		-
Loss from discontinued operations before taxes		(678	)		(103	)
Income taxes
Current income tax recovery		(6	)		(5	)
Deferred income tax recovery		(308	)		(68	)
Net loss from discontinued operations		(364	)		(30	)

Six months ended June 30	2015			2014
Revenue		144			273
Expenses		(401	)		(547	)
		(257	)		(274	)
Loss on remeasurement of discontinued operations		(472	)		-
Loss from discontinued operations before taxes		(729	)		(274	)
Income taxes
Current income tax recovery		(7	)		(5	)
Deferred income tax recovery		(316	)		(149	)
Net loss from discontinued operations		(406	)		(120	)

9

During the three month period ended June 30, 2015, the Company recorded an impairment of $118 million in Norway E&E assets to fully impair costs associated with a license after a dry exploration well confirmed the license to be uneconomic.  In addition, the Company recorded an impairment of $30 million in Norway, due to an increase in the decommissioning obligation and asset caused by a 1.5% decrease in the credit-adjusted discount rate used to measure decommissioning liabilities.

During the six month period ended June 30, 2014, the Company recorded an impairment of $60 million in Norway, due to an increase in the decommissioning obligation and asset caused by a 1% decrease in the credit-adjusted discount rate used to measure decommissioning liabilities. The Company also recorded $130 million of impairment expense in Norway as a result of the Company’s decision to withdraw from an exploration license following technical evaluation, representing the full book value of the license.

The cash flows from discontinued operations, including changes in related non-cash working capital items, are as follows:

	Three months ended June 30						Six months ended June 30
	2015			2014			2015			2014
Operating		(16	)		64			(24	)		37
Investing		(9	)		(76	)		(37	)		(125	)
Cash flows from discontinued operations		(25	)		(12	)		(61	)		(88	)

5. DISPOSALS

North America Dispositions

In April 2014, Talisman sold non-core assets in western Canada for net proceeds of $42 million after $2 million in working capital adjustments, resulting in a pre-tax loss on disposal of $3 million ($4 million after-tax).

In March 2014, Talisman completed the sale of its Montney acreage in northeast British Columbia for proceeds of $1.3 billion, resulting in a pre-tax gain of $564 million ($493 million after tax).

6. INVESTMENTS

	June 30, 2015		December 31,  2014
Investments in Joint Ventures
Equity investment in Equion Energía Limited (Equion)		530		523
		530		523
Available-for-sale investments
Transasia Pipeline Company Pvt. Ltd.		34		34
Other		49		47
		83		81
Total		613		604

	June 30, 2015			December 31, 2014
Obligation to Fund Equity Investee
Equity investment in Talisman Sinopec Energy (UK) Limited  (TSEUK)		(659	)		(700	)
Loan to TSEUK		514			514
		(145	)		(186	)

10

Investments in Joint Ventures

Movement in the investment in TSEUK joint venture during the period is as follows:

	Six months ended June 30, 2015			Year ended  December 31, 2014
Balance, beginning of period		(186	)		206
Investment in TSEUK		362			961
Loan to TSEUK, net of repayments and settlements1		-			(298	)
Share of net loss and comprehensive loss		(321	)		(1,055	)
Balance, end of period		(145	)		(186	)

1. Amount shown net of subscription of common shares which settled a portion of the shareholder loan in June 2014.

Talisman has a 51% interest in the ownership and voting rights of TSEUK whose principal place of operations is the United Kingdom (UK) and is incorporated in England and Wales. Talisman is one of two shareholders in this corporate joint venture engaging in the exploration for, and development and production of crude oil and natural gas. The corporate joint venture is governed by a shareholders’ agreement, which requires that unanimous consent be obtained from the shareholders for all significant operating and financing decisions.

Movement in the investment in Equion joint venture during the period is as follows:

	Six months ended June 30, 2015		Year ended  December 31, 2014
Balance, beginning of period		523		920
Share of net income and comprehensive income		7		15
Dividend declared by Equion1		-		(279	)
Impairment		-		(133	)
Balance, end of period		530		523

1. The dividend declared was settled through a reduction in the loan payable to Equion.

Talisman has a 49% interest in the ownership and voting rights of Equion whose principal place of operations is Colombia. Talisman is one of two shareholders in this strategic corporate joint venture engaged in the exploration for, and development and production of crude oil and natural gas. The corporate joint venture is governed by a heads of agreement amongst the shareholders, which requires that unanimous consent be obtained from the shareholders for all significant operating and financing decisions.

11

The following tables summarize the financial information of the joint ventures. The tables also reconcile financial information to the carrying amount of the Company's interests in joint ventures, which are accounted for using the equity method.

Summarized Balance Sheets	June 30, 2015									December 31, 2014
	TSEUK1			Equion1			Total			TSEUK1			Equion1			Total
Cash and cash equivalents		23			79			102			37			141			178
Current assets		538			254			792			517			314			831
Loans receivable from shareholders		-			150			150			-			29			29
Non-current assets		5,050			1,117			6,167			4,812			1,246			6,058
Total assets		5,611			1,600			7,211			5,366			1,730			7,096
Current liabilities		931			272			1,203			1,073			392			1,465
Loans payable to shareholders		1,009			-			1,009			1,009			-			1,009
Non-current liabilities		5,114			306			5,420			4,807			329			5,136
Total liabilities		7,054			578			7,632			6,889			721			7,610
Net assets (liabilities)		(1,443	)		1,022			(421	)		(1,523	)		1,009			(514	)
Talisman’s interest		51	%		49	%					51	%		49	%
Talisman’s share of net assets (liabilities)		(736	)		501			(235	)		(777	)		494			(283	)
Goodwill		77			162			239			77			162			239
		(659	)		663			4			(700	)		656			(44	)
Loan to TSEUK		514			-			514			514			-			514
Accumulated impairment on investment		-			(133	)		(133	)		-			(133	)		(133	)
Talisman’s investment (obligation to fund)		(145	)		530			385			(186	)		523			337

1. Balances represent respective entity’s 100% share.

12

Summarized Statements of Income (Loss)	Three months ended June 30, 2015									Three months ended June 30, 2014
	TSEUK1			Equion1			Total			TSEUK1			Equion1			Total
Revenue		217			129			346			403			158			561
Operating		216			21			237			372			24			396
Transportation		5			9			14			8			10			18
General and administrative		21			-			21			8			-			8
Depreciation, depletion and amortization		112			84			196			96			68			164
Exploration expense		1			-			1			2			-			2
Finance costs		39			-			39			35			-			35
Impairment		260			-			260			198			-			198
Other		(12	)		(8	)		(20	)		15			(15	)		-
Income (loss) before tax		(425	)		23			(402	)		(331	)		71			(260	)
Current income tax expense (recovery)		(22	)		20			(2	)		1			37			38
Deferred income tax recovery		(178	)		(13	)		(191	)		(214	)		(12	)		(226	)
Net income (loss) and comprehensive income (loss)		(225	)		16			(209	)		(118	)		46			(72	)
Talisman’s interest		51	%		49	%					51	%		49	%
Talisman’s share of income (loss) after tax		(115	)		8			(107	)		(60	)		23			(37	)
Cash dividends received by Talisman		-			-			-			-			-			-

1. Balances represent respective entity’s 100% share.

Summarized Statements of Income (Loss)	Six months ended June 30, 2015									Six months ended June 30, 2014
	TSEUK1			Equion1			Total			TSEUK1			Equion1			Total
Revenue		390			230			620			706			321			1,027
Operating		477			39			516			656			45			701
Transportation		11			16			27			11			20			31
General and administrative		41			-			41			15			-			15
Restructuring costs		5			-			5			-			-			-
Depreciation, depletion and amortization		284			151			435			176			132			308
Exploration expense		2			-			2			5			-			5
Finance costs		78			1			79			67			1			68
Impairment		260			-			260			198			-			198
Other		47			3			50			27			(26	)		1
Income (loss) before tax		(815	)		20			(795	)		(449	)		149			(300	)
Current income tax expense (recovery)		(52	)		16			(36	)		(26	)		75			49
Deferred income tax recovery		(134	)		(10	)		(144	)		(272	)		(19	)		(291	)
Net income (loss) and comprehensive income (loss)		(629	)		14			(615	)		(151	)		93			(58	)
Talisman’s interest		51	%		49	%					51	%		49	%
Talisman’s share of income (loss) after tax		(321	)		7			(314	)		(77	)		46			(31	)
Cash dividends received by Talisman		-			-			-			-			-			-

1.  Balances represent respective entity’s 100% share.

13

Summarized Statements of Cash Flows	Three months ended June 30, 2015									Three months ended June 30, 2014
	TSEUK1			Equion1			Total			TSEUK1			Equion1			Total
Operating activities
Net income (loss)		(225	)		16			(209	)		(118	)		46			(72	)
Add: Finance costs (cash and non-cash)		39			-			39			35			-			35
Items not involving cash		176			65			241			89			44			133
Changes in non-cash working capital		(164	)		(111	)		(275	)		59			9			68
Cash provided by (used in) operating activities		(174	)		(30	)		(204	)		65			99			164
Investing activities
Capital expenditures		(198	)		(21	)		(219	)		(332	)		(55	)		(387	)
Proceeds of disposition		-			7			7			-			14			14
Loans to shareholders		-			(80	)		(80	)		-			-			-
Other		(31	)		(8	)		(39	)		16			(12	)		4
Cash used in investing activities		(229	)		(102	)		(331	)		(316	)		(53	)		(369	)
Financing activities
Common shares issued		390			-			390			-			-			-
Loans from shareholders, net of repayments		-			-			-			349			-			349
Finance costs (cash)		(10	)		-			(10	)		(17	)		1			(16	)
Other		9			-			9			20			-			20
Cash provided by financing activities		389			-			389			352			1			353

1.  Balances represent respective entity’s 100% share.

Summarized Statements of Cash Flows	Six months ended June 30, 2015									Six months ended June 30, 2015
	TSEUK1			Equion1			Total			TSEUK1			Equion1			Total
Operating activities
Net income (loss)		(629	)		14			(615	)		(151	)		93			(58	)
Add: Finance costs (cash and non-cash)		78			1			79			67			1			68
Items not involving cash		437			145			582			122			101			223
Changes in non-cash working capital		(134	)		(10	)		(144	)		(89	)		(27	)		(116	)
Cash provided by (used in) operating activities		(248	)		150			(98	)		(51	)		168			117
Investing activities
Capital expenditures		(411	)		(42	)		(453	)		(653	)		(69	)		(722	)
Proceeds of dispositions		-			7			7			-			14			14
Loans to shareholders		-			(121	)		(121	)		-			(37	)		(37	)
Other		(64	)		(56	)		(120	)		106			(15	)		91
Cash used in investing activities		(475	)		(212	)		(687	)		(547	)		(107	)		(654	)
Financing activities
Common shares issued		710			-			710			-			-			-
Loans from shareholders, net of repayments		-			-			-			686			-			686
Finance costs (cash)		(19	)		-			(19	)		(30	)		-			(30	)
Other		18			-			18			(8	)		-			(8	)
Cash provided by financing activities		709			-			709			648			-			648

1.  Balances represent respective entity’s 100% share.

The summarized financial information presented is the amounts included in the financial statements of the joint venture entities adjusted for fair value adjustments made at the time of acquisition of the joint venture, as appropriate. The fair value adjustments related to the Company's jointly controlled equity interest in Equion principally relate to property, plant and equipment, provisions and the related indemnification asset and goodwill. In addition, the financial statements of TSEUK have been adjusted with respect to asset impairments, decommissioning liabilities and provisions.

14

TSEUK Joint Venture

As at June 30, 2015, the investment balance in the TSEUK joint venture was negative $145 million. The obligation to fund TSEUK, in proportion of its shareholding, arises from the Company’s past practice of funding TSEUK’s cash flow deficiencies, and the expectation that cash flow deficiencies will continue to be funded through 2015. In addition, the Company, in proportion of its shareholding, has provided certain guarantees to fund TSEUK’s decommissioning obligation if TSEUK is unable to (note 17), and the shareholders of TSEUK have provided equity funding facilities to TSEUK which include funding decommissioning liabilities. As such, the Company has recognized a negative investment value from the application of equity accounting. The Company’s obligation to fund TSEUK will increase to the extent future losses are generated within TSEUK. In addition, future contributions to the TSEUK joint venture could be impaired to the extent recoverability is not probable.

In June 2014, the shareholders of TSEUK provided an equity funding facility totaling $1.2 billion to TSEUK, of which Talisman was committed to $612 million, for the purpose of funding capital, decommissioning and operating expenditures of TSEUK. In March 2015, the maximum available amount was increased to $1.5 billion. This facility expired on June 30, 2015. During the period from July 1, 2014 to December 31, 2014, the shareholders of TSEUK agreed to subscribe for common shares of TSEUK in the amount of $625 million under this facility, of which Talisman’s share was $319 million. During the six month period ended June 30, 2015, the shareholders of TSEUK agreed to subscribe for common shares of TSEUK in the amount of $710 million under this facility, of which Talisman’s share was $362 million.

In June 2015, the shareholders of TSEUK provided a new equity funding facility of $1.7 billion, of which Talisman is committed to $867 million, for the purpose of funding capital, decommissioning and operating expenditures of TSEUK. This facility is effective from July 1, 2015 and expires on December 31, 2016.

The shareholders of TSEUK have provided an unsecured loan facility totaling $2.4 billion to TSEUK, of which Talisman is committed to $1.2 billion, for the purpose of funding capital expenditures of TSEUK. In January 2015, an agreement was reached by the shareholders of TSEUK, in which the quarterly principal and interest payments of the facility were deferred until July 31, 2015. As at June 30, 2015, $1.0 billion has been drawn under this facility, of which Talisman’s share is $514 million (December 31, 2014 - $514 million).

Loans under this facility bear interest at the UK interest rate swap rate plus 2.5%, and are repayable quarterly in equal installments based upon a five year repayment period calculated from the date each loan is advanced.  All outstanding loans mature December 31, 2017, although the maturity date may be extended from time to time upon agreement between the shareholders and TSEUK.  Prior to the maturity date, TSEUK may repay, in full or in part, the balance outstanding on any loan under this facility. Remaining borrowing capacity under this facility:

	Six months ended June 30, 2015		Year ended December 31, 2014
Borrowing capacity, beginning of period		742		1,525
Advances		-		(783	)
Borrowing capacity, end of period		742		742
Talisman’s share		378		378

15

In June 2014, the shareholders of TSEUK agreed to subscribe for common shares of TSEUK in the amount of $1.26 billion, of which Talisman’s share was $643 million, which settled shareholder loans of $1.24 billion and accrued interest of $18 million, of which Talisman’s share was $634 million and $9 million, respectively.

In July 2015, the shareholders of TSEUK agreed to subscribe for common shares of TSEUK in the amount of $1.06 billion, of which Talisman’s share was $541 million, which settled remaining shareholder loans of $1.01 billion and accrued interest of $52 million, of which Talisman’s share was $514 million and $27 million, respectively.

TSEUK is required to provide demand letters of credit as security in relation to certain decommissioning obligations in the UK pursuant to contractual arrangements under Decommissioning Security Agreements (DSAs). Refer to “Liquidity Risk” in note 17.

During the three months ended March 31, 2015, the UK government announced that effective January 1, 2015 the rate of supplementary charge on ring fence profits decreased from 32% to 20%. Consequently, there is now a combined UK corporation tax and supplementary charge rate of 50% (down from 62%) for oil and gas companies with fields not subject to Petroleum Revenue Tax (PRT). The UK government also announced that the PRT rate will decrease from 50% to 35%, effective for years ending after December 31, 2015. As a result of this legislative change, TSEUK recorded a recovery of deferred PRT of $98 million ($50 million net to Talisman).

During the three months ended June 30, 2015, an impairment expense of $260 million, of which Talisman’s share was $133 million, was recorded in TSEUK as a result of Talisman’s adoption of Repsol’s credit-adjusted discount rate in measuring decommissioning obligations.

Equion Joint Venture

During the year ended December 31, 2014, Equion declared dividends payable to the shareholders in the amount of $570 million, of which Talisman’s share was $279 million. The Company has recorded a reduction in the equity investment in Equion. The dividends were settled through reduction of the loan due to Equion as described below.

The loan due to Equion of $74 million (December 31, 2014 - $15 million) is unsecured, due upon demand and bears interest at LIBOR plus 0.30%.

There have been no significant changes in expected future commitments of TSEUK and Equion, and the timing of those payments, since December 31, 2014.

7. GOODWILL

Continuity of goodwill	Six months ended June 30, 2015		Year ended December 31, 2014
Balance, beginning of period		279		575
Disposals		-		(9	)
Impairments		-		(287	)
Balance, end of period		279		279

Goodwill has no tax basis.

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8. OTHER ASSETS

	June 30, 2015		December 31,  2014
Accrued pension asset		5		4
Decommissioning sinking fund		71		71
Transportation rights1		88		92
Other		11		13
Total		175		180

1. Net of $20 million accumulated depreciation (December 31, 2014 - $16 million).

9. YME REMOVAL OBLIGATION

In March 2013, Talisman, acting on behalf of its partners in the Yme field in Norway, entered into an agreement with the platform contractor. This agreement terminated all existing Yme contracts and outstanding disputes between the Yme partners and the platform contractor, set out the provisions regarding the removal of the existing above-surface Yme structure, the delivery of the existing above-surface Yme structure to the platform contractor (which Talisman, acting on behalf of the Yme partners, will complete as the “Talisman Works”) and provided for a payment of $470 million from the platform contractor to the Yme partners to fund the cost of the Talisman Works. The Yme partners agreed to deposit $409 million into an escrow account, which can only be withdrawn for purposes of settling costs and liabilities associated with the Talisman Works.

Balances of restricted cash and Yme removal obligation as at June 30, 2015 were reclassified to assets and liabilities held for sale as a result of Talisman’s expected sale of substantially all of its operating assets and liabilities of the Norwegian operations to Repsol. As at June 30, 2015, Talisman’s share of the liability associated with the Talisman Works in the amount of $128 million (December 31, 2014 - $186 million) has been recorded as the Yme removal obligation. Talisman’s share of the cash held in the escrow account in the amount of $91 million (December 31, 2014 - $149 million) has been recorded as restricted cash. During the three and six months ended June 30, 2015, $20 million and $58 million (2014 - $13 million and $29 million) respectively in eligible expenditures were incurred on the Talisman Works which reduced the Yme removal obligation and the restricted cash balance by an equal amount.

17

10. OIL AND GAS ASSETS

The cost and accumulated DD&A of the Company’s PP&E (including corporate assets) and E&E assets are as follows:

	PP&E			E&E assets			Total
Cost
At December 31, 2013		23,039			5,393			28,432
Additions		1,743			409			2,152
Disposals and derecognition		(1,981	)		(23	)		(2,004	)
Transfers from E&E assets to PP&E		285			(285	)		-
Change in decommissioning liabilities		130			114			244
Expensed to dry hole		-			(140	)		(140	)
At December 31, 2014		23,216			5,468			28,684
Acquisitions		-			8			8
Additions		467			93			560
Disposals and derecognition		(7	)		-			(7	)
Transfers from E&E assets to PP&E		11			(11	)		-
Change in decommissioning liabilities		300			4			304
Expensed to dry hole		-			(19	)		(19	)
Transfers to assets held for sale (note 4)		(3,827	)		(2,124	)		(5,951	)
At June 30, 2015		20,160			3,419			23,579
Accumulated DD&A
At December 31, 2013		13,287			2,228			15,515
Charge for the period		1,936			10			1,946
Disposals and derecognition		(1,733	)		-			(1,733	)
Transfers from E&E assets to PP&E		10			(10	)		-
Impairment losses, net of reversals		672			676			1,348
Transfers from PP&E to E&E assets		(20	)		20			-
					.
At December 31, 2014		14,152			2,924			17,076
Charge for the period		887			-			887
Disposals and derecognition		(6	)		-			(6	)
Impairment, net of reversals (note 11)		70			131			201
Transfers to assets held for sale (note 4)		(3,597	)		(2,124	)		(5,721	)
					.
At June 30, 2015		11,506			931			12,437
Net book value
At June 30, 2015		8,654			2,488			11,142
At December 31, 2014		9,064			2,544			11,608
At December 31, 2013		9,752			3,165			12,917

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11. IMPAIRMENT, NET OF REVERSALS

	Three months ended June 30				Six months ended June 30
	2015		2014		2015		2014
Impairment losses
E&E assets		-		-		2		-
PP&E		-		-		46		-
		-		-		48		-

Impairment reversals
E&E assets	-	-		-	-
PP&E	-	(32	)	-	(32	)
	-	(32	)	-	(32	)
Net Impairment (reversal)	-	(32	)	48	(32	)

In conjunction with the acquisition of the Company by Repsol, Repsol has completed a preliminary allocation of the purchase price for purposes of its accounting subsequent to the acquisition date. As part of the purchase price allocation, Repsol estimated fair values of the Company’s assets and liabilities. Based on this preliminary assessment, certain of the Company’s assets could be impaired or subject to impairment reversals in future periods. Management has not recorded these potential impairments or reversals in the June 30, 2015 financial statements as the estimates are considered preliminary and subject to further review. The magnitude of any impairments or reversals to be recorded in future periods will be determined as the purchase price allocation is finalized. This is expected to occur later in 2015.

During the three month period ended June 30, 2014, the Company recorded an impairment reversal of $32 million in North America, due to the estimated recoverable amount of assets held for sale exceeding their carrying amounts.

12. DECOMMISSIONING LIABILITIES

Continuity of decommissioning liabilities	Six months ended June 30, 2015			Year ended  December 31, 2014
Balance, beginning of period		1,928			1,769
Liabilities incurred during the period		10			75
Liabilities settled during the period		(40	)		(59	)
Accretion expense		28			51
Revisions in estimated cash flows		(20	)		109
Change in discount rate		314			60
Disposals		-			(77	)
Reclassified as liabilities associated with assets held for sale (note 4)		(1,215	)		-
Balance, end of period		1,005			1,928
Expected to be settled within one year		38			43
Expected to be settled in more than one year		967			1,885
		1,005			1,928

As a result of Repsol’s acquisition of Talisman in May 2015, Talisman has adopted Repsol’s credit-adjusted rate to discount its decommissioning liabilities as at June 30, 2015. The provision has been discounted using a weighted average credit-adjusted rate of 2.0% at June 30, 2015 (December 31, 2014 – 3.5%), which excludes the impact of inflation.  As a result, Talisman’s decommissioning liabilities including discontinued operations increased by $314 million.

19

13. FINANCE COSTS

	Three months ended June 30				Six months ended June 30
	2015		2014		2015		2014
Interest on long-term debt		64		69		130		137
Miscellaneous interest expense and other fees		8		7		20		15
Accretion expense		7		7		13		14
		79		83		163		166

14. LONG-TERM DEBT

	June 30, 2015			December 31,  2014
Bankers’ Acceptances		-			475
Commercial Paper		-			103
Tangguh Project Financing		40			43
Short-term LIBOR Loan		-			150
Loans from Related Parties		831			-
Debentures and Notes (Unsecured)
US$ denominated		3,531			3,905
UK£ denominated (UK£ million)		392			388
Gross debt		4,794			5,064
Less: current portion		(156	)		(1,109	)
Less: Loans from Related Parties		(831	)		-
Long-term debt		3,807			3,955

During the six month period ended June 30, 2015, Talisman repaid debt of $1,558 million, including $150 million of short-term LIBOR loan, $775 million of bankers’ acceptances, $255 million of commercial paper, $375 million of 5.125% notes and $3 million of Tangguh project financing. The Company also issued debt of $452 million, including $300 million of bankers’ acceptances and $152 million of commercial paper. The current liability of $156 million consists of $150 million in 8.5% notes, and $6 million in Tangguh project financing.

Bank Credit Facilities and Commercial Paper

At June 30, 2015, Talisman had unsecured credit facilities totaling $3.2 billion, consisting of facilities of $3billion (Facility No. 1), maturing March 19, 2019 and $200 million (Facility No. 2), maturing October 21, 2019.

Borrowings under Facility No. 1 are available in the form of prime loans, C$ or US$ bankers’ acceptances, US$ base rate loans, LIBOR-based loans and letters of credit.  In addition, drawings to a total of $1.0 billion are available in the form of letters of credit.  Borrowings under Facility No. 2 are available in the form of prime loans, C$ or US$ bankers’ acceptances, US$ base rate loans, LIBOR-based loans and letters of credit.

At June 30, 2015, there were no drawings in the form of bankers’ acceptances or commercial paper. There was $85 million in letters of credit support outstanding at June 30, 2015. The authorized amount under the Company’s commercial paper program is $1.0 billion, but the amount available under this program is limited to the availability of backup funds under the Company’s Facility No. 1.

At June 30, 2015, available borrowing capacity under the bank credit facilities was $3.1 billion.

20

Related Party Facilities

During the three months period ended June 30, 2015, Talisman has entered into the following revolving facilities with Repsol entities:

On May 8, 2015, TE Holdings SARL., a subsidiary of Talisman, entered into a $500 million revolving facility with Repsol Tesoreria Y Gestion Financiera, S.A. The facility matures on May 8, 2016 and bears an interest rate of LIBOR+0.80%.  As at June 30, 2015, $197 million has been drawn under this facility.  Interest expense related to the facility recognized by Talisman during the period was less than $1 million.

On May 8, 2015, Talisman also entered into a $1.0 billion revolving facility with Repsol Energy Resources Canada, Inc. The facility matures on May 8, 2018 and bears an interest rate of LIBOR+1.20%. As at June 30, 2015, $634 million has been drawn under this facility. Interest expense related to the facility recognized by Talisman during the period was $1 million.

Debt Covenants

Talisman is in compliance with all of its debt covenants. The Company’s principal financial covenant under its primary bank credit facility is a debt-to-cash flow ratio of less than 3.5:1, calculated quarterly on a trailing 12-month basis as of the last day of each fiscal quarter. Considering the current commodity price environment, Talisman may require support from Repsol to ensure continued compliance with its liquidity and covenant requirements.

15. OTHER LONG-TERM OBLIGATIONS

	June 30, 2015		December 31,  2014
Accrued pension and other post-employment benefits liabilities		102		135
Deferred credits		17		41
Long-term portion of discounted obligations under finance leases		36		41
Long-term portion of share-based payments liability (note 16)		-		1
Other		67		55
		222		273

The fair value of financial liabilities included above approximates the carrying amount.

21

16. SHARE CAPITAL AND SHARE-BASED PAYMENTS

Authorized

Talisman's authorized share capital consists of an unlimited number of common shares without nominal or par value and an unlimited number of first and second preferred shares.

Common Shares Issued

Continuity of common shares	Six months ended June 30, 2015						Year ended December 31, 2014
	Shares			Amount			Shares			Amount
Balance, beginning of period		1,031,525,988			1,738			1,031,356,870			1,723
Issued on exercise of stock options		-			-			478,244			5
Converted from preferred shares		8,000,000			195			-			-
Shares previously held in trust sold on the open market		323,584			3			-			-
Shares purchased and held in trust for long-term PSU  plan		(3,793,939	)		(30	)		(2,265,898	)		(21	)
Shares released from trust for long-term PSU plan		8,110,394			86			1,956,772			31
Balance, end of period		1,044,166,027			1,992			1,031,525,988			1,738

On May 8, 2015, Repsol’s acquisition of Talisman was completed, whereby Repsol acquired all outstanding common and preferred shares of Talisman. The outstanding preferred shares were subsequently converted into common shares on a 1:1 basis.

Subsequent to June 30, 2015, there were no activities relating to the Company’s common shares.

During the three and six month periods ended June 30, 2015, the Company declared common share dividends of $0.1125 per common share for an aggregate dividend of $117 million.

Preferred Shares Issued

Continuity of preferred shares	Six months ended June 30, 2015						Year ended December 31, 2014
	Shares			Amount			Shares		Amount
Cumulative Redeemable Rate Reset First Preferred Shares, 4.2% Series 1:
Balance, beginning of period		8,000,000			191			8,000,000		191
Converted into common shares		(8,000,000	)		(191	)		-		-
Balance, end of period		-			-			8,000,000		191

During the three month period ended June 30, 2015, no preferred share dividends were declared. During the six month period ended June 30, 2015, Talisman declared preferred share dividends of C$0.2625 per share for an aggregate dividend of $2 million.

Subsequent to the acquisition of Talisman by Repsol on May 8, 2015, all Series 1 preferred shares were converted on a 1:1 basis into common shares.

22

Share-Based Payments

Subsequent to the acquisition of Talisman by Repsol on May 8, 2015, all share-based payment units were settled and paid by May 29, 2015.

As at June 30, 2015, there were no short-term or long-term obligations on the Company’s balance sheets, relating to stock options, cash units, DSUs and RSUs, as all such outstanding units were settled and paid in the three month period ended June 30, 2015.

During the three month period ended June 30, 2015, the Company recorded a share-based payments recovery of $19 million (2014 - $23 million expense) in respect of the following plans: stock options - $37 million recovery, cash units - $1 million recovery, PSUs - $12 million expense, RSUs - $8 million expense, and DSUs - $1 million recovery. The share-based payments expense includes cash payments of $32 million (2014 - $14 million) to employees in settlement of fully accrued share-based payments liabilities for RSUs settled in the period.  An additional cash payment of $86 million was made to employees in cash settlement of all stock options, cash units, RSUs, and PSUs outstanding on completion of Repsol’s acquisition of Talisman. In general and administrative expense in the condensed Consolidated Statement of Income (Loss), the Company recognized no DSU expense relating to the director and executive deferrals. General and administrative expense included payments of $8 million for settlement of DSUs as a result of Repsol’s acquisition of Talisman.

During the six month period ended June 30, 2015, the Company recorded share-based payments recovery of $24 million (2014 - $9 million recovery) in respect of the following plans: stock options $38 million recovery, cash units - $3 million recovery, PSUs - $7 million expense, RSUs - $10 million expense, and DSUs - $nil. The share-based payments expense includes cash payments of $32 million (2014 - $16 million) to employees in settlement of fully accrued share-based payments liabilities for RSUs settled in the period. An additional cash payment of $86 million was made to employees in cash settlement of all stock options, cash units, RSUs, and PSUs outstanding on completion of Repsol’s acquisition of Talisman. In general and administrative expense in the condensed Consolidated Statement of Income (Loss), the Company recognized no DSU recovery relating to the directors and executive deferrals. General and administrative expense included payments of $8 million for settlement of DSUs as a result of Repsol’s acquisition of Talisman.

At June 30, 2015, there were no outstanding share-based payment arrangements.

17. FINANCIAL INSTRUMENTS

Talisman’s financial assets and liabilities at June 30, 2015 consisted of cash and cash equivalents, accounts receivable, available-for-sale investments, bank indebtedness, accounts payable and accrued liabilities, loans from joint ventures, loans from related parties, long-term debt (including the current portion) and risk management assets and liabilities arising from the use of derivative financial instruments.

Fair Value of Financial Assets and Liabilities

The fair values of cash and cash equivalents, accounts receivable, bank indebtedness, accounts payable and accrued liabilities, and loans from joint ventures approximate their carrying values due to the short-term maturity of those instruments.

Borrowings under bank credit facilities are short-term in nature and are market rate-based, thus, carrying value approximates fair value.  The fair value of public 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 values of private notes are based on estimations provided by third parties.  The fair value of Talisman’s floating rate debt is determined by discounting future estimated coupon payments at the current market interest rate. The fair value of Talisman’s long-term debt (including the current portion) at June 30, 2015 was $4.9 billion (December 31, 2014 - $5.3 billion), while the carrying value was $4.8 billion (December 31, 2014 - $5.1 billion). The Company uses Level 2 inputs as described below to estimate the fair value of the outstanding long-term debt as at June 30, 2015.

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The fair values of all other financial assets and liabilities approximate their carrying values.

Risk management assets and liabilities are recorded at their estimated fair values.  To estimate fair value, the Company uses quoted market prices when available, or models that utilize observable market data.  In addition to market information, the Company incorporates transaction-specific details that market participants would utilize in a fair value measurement, including the impact of non-performance risk.  The Company’s non-performance risk is determined based on third party quotes for the Company’s debt instruments with maturity dates that are similar, or in close approximation, to the maturity dates of the corresponding financial instrument. The Company characterizes inputs used in determining fair value using a hierarchy that prioritizes inputs depending on the degree to which they are observable.

The three levels of the fair value hierarchy are as follows:

· Level 1 – inputs represent quoted prices in active markets for identical assets or liabilities (for example, exchange-traded commodity derivatives).  Active markets are those in which transactions occur in sufficient frequency and volume to provide pricing information on an ongoing basis;

· Level 2 – inputs other than quoted prices included within level 1 that are observable, either directly or indirectly, as of the reporting date. Level 2 valuations are based on inputs, including quoted forward prices for commodities, market interest rates and volatility factors, which can be observed or corroborated in the marketplace.  The Company obtains information from sources such as the New York Mercantile Exchange (NYMEX) and independent price publications; and

· Level 3 – inputs that are less observable, unavailable or where the observable data does not support the majority of the instrument’s fair value, such as the Company’s internally developed assumptions about market participant assumptions used in pricing an asset or liability, for example, an estimate of future cash flows used in the Company’s internally developed present value of future cash flows model that underlies the fair value measurement.

In forming estimates, the Company utilizes the most observable inputs available for valuation purposes. If a fair value measurement reflects inputs of different levels within the hierarchy, the measurement is categorized based upon the lowest level of input that is significant to the fair value measurement. The valuation of over-the-counter financial swaps and collars is based on similar transactions observable in active markets or industry standard models that rely primarily on market observable inputs. Substantially all of the assumptions for industry standard models are observable in active markets throughout the full term of the instrument. These are categorized as Level 2.

Fair values for derivative instruments are determined based on the estimated cash payment or receipt necessary to settle the contract. Fair values for commodity price derivatives are based on discounted cash flow analysis using current market rates and prices and option pricing models using forward pricing curves and implied volatility, as appropriate, which are compared to quotes received from financial institutions for reasonability. Fair values for interest rate instruments are based on discounted cash flow analysis using current market rates and prices.

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Risk Management Assets, Liabilities, Gains and Losses

During the three and six month periods ended June 30, 2015, the Company received proceeds of $817 million and $1.3 billion, respectively, for settlement of its oil and gas derivative contracts, which included proceeds related to the liquidation of outstanding instruments. As at June 30, 2015, there was less than $1 million of risk management liability associated with the Company’s outstanding fixed price power swaps, which were measured using Level 2 inputs.

During the three month period ended June 30, 2015, the Company recorded a loss on held-for-trading financial instruments of $131million (2014 - $171 million loss) and a gain of $62 million for the six month period ended June 30, 2015 (2014 - $231 million loss).

Currency Risk

Talisman operates internationally and is therefore exposed to foreign exchange risk.  Talisman’s primary exposure is from fluctuations in the US$ relative to the C$, UK£, and NOK.

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 currencies.  The Company purchases foreign currencies, mostly at spot value, to meet its current foreign currency obligations as they come due.

In respect of financial instruments existing at June 30, 2015, a 1% strengthening of the US$ against the other currencies noted above, with all other variables assumed constant, would have resulted in a decrease of $3million in net loss and a $3 million impact on comprehensive loss during the three month period ended June 30, 2015. A similar weakening of the US$ would have had the opposite impact.

Interest Rate Risk

Talisman is exposed to interest rate risk principally by virtue of its borrowings including loans from joint ventures.  Borrowing at floating rates exposes Talisman to short-term movements in interest rates. Borrowing at fixed rates exposes Talisman to reset risk (i.e. at debt maturity). Risk management activities aim to manage the mix of fixed-to-floating debt to best manage the trade-off between longer term interest rate reset risk and shorter term volatility in interest rates.

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. The Company had fixed-to-floating interest rate swap contracts with a total notional amount of $300 million outstanding at the beginning of the three month period ended June 30, 2015. These contracts expired on May 15, 2015. The Company did not enter any new interest rate swap contracts during the rest of the quarter.

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 June 30, 2015, approximately 84% of the Company's trade accounts receivable was aged less than 90 days and the largest single counterparty exposure, accounting for 7% of the total, was with a highly rated counterparty. Concentration of counterparty credit risk is managed by having a broad domestic and international customer base primarily of highly rated counterparties.

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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 manages its liquidity requirements by use of both short-term and long-term cash forecasts, and by maintaining appropriate undrawn capacity under committed bank and related party credit facilities. The Company has in place committed bank facilities totaling $3.2 billion, all of which are committed through 2019. At June 30, 2015, there were no drawings in the form of bankers’ acceptance or commercial paper, and there was $85 million in letters of credit support outstanding. Available borrowing capacity under committed bank facilities was $3.1 billion at June 30, 2015. In addition, the Company also has in place related party facilities from Repsol subsidiaries totaling $1.5 billion, $500 million of which is committed through 2016 with the remainder committed through 2018. At June 30, 2015, $831 million were drawn under these facilities.

In addition, the Company utilizes letters of credit pursuant to letter of credit facilities, most of which are uncommitted.  At June 30, 2015, demand letters of credit guaranteed by the Company totaling $1.3billion were issued, of which $1.2 billion were issued from uncommitted facilities. Of that total, $1.0 billion is provided as security for the costs of decommissioning obligations in the UK, as described below. The remaining outstanding letters of credit relate primarily to a retirement compensation arrangement, guarantees of minimum work commitments and decommissioning obligations in other areas.

TSEUK is required to provide letters of credit as security in relation to certain decommissioning obligations in the UK pursuant to contractual arrangements under Decommissioning Security Agreements (DSAs). At the commencement of the joint venture, Addax Petroleum UK Limited (Addax) assumed 49% of the decommissioning obligations of TSEUK. Addax’s parent company, China Petrochemical Corporation (Sinopec), has provided an unconditional and irrevocable guarantee for this 49% of the UK decommissioning obligations.

The UK government passed legislation in 2013 which provides for a contractual instrument, known as a Decommissioning Relief Deed, for the government to guarantee tax relief on decommissioning costs at 50%, allowing security under DSAs to be posted on an after-tax basis and reducing the value of letters of credit required to be posted by 50%. TSEUK has entered into a Decommissioning Relief Deed with the UK Government and continues to negotiate with counterparties to amend all DSAs accordingly. Tax relief guaranteed by the UK government is limited to corporate tax paid since 2002. Under the limitation, TSEUK’s tax relief is capped at $2.2 billion, representing corporate income taxes paid and recoverable since 2002.

At June 30, 2015, TSEUK has $2.6 billion of demand shared facilities in place under which letters of credit of $1.9 billion have been issued. The Company guarantees 51% of all letters of credit issued under these shared facilities.

The Company has also granted guarantees to various beneficiaries in respect of decommissioning obligations of TSEUK.

At June 30, 2015, Talisman’s share of TSEUK’s total recorded decommissioning liabilities was $2.6 billion. Decommissioning estimates are subject to a significant amount of management judgment given the long dated nature of the assets and the timing of remediation upon cessation of production. The Company reviews its assessment of decommissioning liabilities annually, or where a triggering event causes a review, taking into account new information and industry experience.

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Any changes to decommissioning estimates influence the value of letters of credit required to be provided pursuant to DSAs. In addition, the extent to which shared facility capacity is available, and the cost of that capacity, is influenced by the Company’s investment-grade credit rating.

As at June 30, 2015, the investment balance in the TSEUK joint venture was negative $145 million. The obligation to fund TSEUK, in proportion of its shareholding, arises from the Company’s past practice of funding TSEUK’s cash flow deficiencies, and the expectation that cash flow deficiencies will continue to be funded through 2015. In addition, the Company, in proportion of its shareholding, has provided certain guarantees to fund TSEUK’s decommissioning obligation if TSEUK is unable to, and the shareholders of TSEUK have provided equity funding facilities to TSEUK which include funding decommissioning liabilities. As such, the Company has recognized a negative investment value from the application of equity accounting. The Company’s obligation to fund TSEUK will increase to the extent future losses are generated within TSEUK. In addition, future contributions to the TSEUK joint venture could be impaired to the extent recoverability is not probable.

Except for commodity price derivative contracts that mature as noted below, long-term debt that matures as outlined in note 14 and other long-term obligations detailed in note 15, all of the Company’s financial liabilities are due within one year.

Commodity Price Risk

Talisman is exposed to commodity price risk since its revenues are dependent on the price of crude oil, natural gas and NGLs. Talisman may enter into derivative instruments from time to time to mitigate commodity price risk volatility under guidelines approved by the Board of Directors.  The Company may hedge a portion of its future production to protect cash flows to allow it to meet its strategic objectives.

During the six month period ended June 30, 2015, the Company liquidated all its contracts related to commodity price risk management. Subsequent to June 30, 2015, the Company has not entered into any new commodity price risk management derivative contracts.

At June 30, 2015, the Company had power commodity price derivative contracts outstanding with fair value of less than $1 million.

18. CONTINGENCIES AND COMMITMENTS

Provisions and Contingencies

From time to time, Talisman is the subject of litigation arising out of the Company’s operations. Damages claimed under such litigation 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 defend itself against such litigation.  These claims are not currently expected to have a material impact on the Company’s financial position. A summary of specific legal proceedings and contingencies is as follows:

Galley Pipeline

In August 2012, a portion of the Galley pipeline, in which TSEUK has a 67.41% interest, suffered an upheaval buckle.

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In September 2012, TSEUK, in which Talisman holds a 51% interest, claimed for the suffered losses as a consequence of the incidence to Oleum Insurance Company (''Oleum''), a wholly-owned Talisman subsidiary. TSEUK delivered a proof of loss seeking recovery under the insuring agreement of $315 million.

In November 2014, TSEUK delivered extensive documentation purporting to substantiate its claim. The information delivered to date does not support a determination of coverage and Oleum is seeking additional information from TSEUK to facilitate final coverage determination.

Addax Arbitration

On July 13, 2015, Addax Petroleum UK Limited and Sinopec International Petroleum Exploration and Production Corporation, filed a Notice of Arbitration against Talisman Energy Inc. and Talisman Colombia Holdco Limited in connection with the purchase of 49% shares of Talisman Energy (UK) Limited (now known as TSEUK). In the Company’s opinion, the claims included in the Notice of Arbitration are without merit.

Government and Legal Proceedings with Tax Implications

Specific tax claims which Talisman and its subsidiaries are parties to at June 30, 2015 are as follows:

Canada

The Canadian tax authorities, Canada Revenue Agency, ("CRA") regularly inspect the tax matters of the Talisman Group companies based in Canada. In 2015, verification and investigation activities related to the years 2006-2010 have been made.

As part of these proceedings, the CRA has questioned certain restructuring transactions, although this line of questioning has not resulted in court proceedings to date.

Indonesia

Indonesian Corporate Tax Authorities have been questioning various aspects of the taxation of permanent establishments that Talisman Group has in the country. These proceedings are pending a court hearing.

Malaysia

Talisman Malaysia Ltd. and Talisman Malaysia (PM3) Ltd., the Talisman Group's operating subsidiaries in Malaysia, have received notifications from the Inland Revenue Board (IRB) in respect of the years 2007, 2008 and 2011 questioning, primarily, the deductibility of certain costs. These proceedings are pending a court hearing.

Norway

As part of the process of verifying the tax affairs of Talisman Energy Norge AS, the Talisman Group's subsidiary in Norway, the Norwegian tax authorities have questioned the deductibility of certain items. These proceedings are pending a court hearing.

Timor-Leste

The authorities of Timor-Leste, questioned the deduction by TLM Resources (JPDA 06-105) Pty Limited, the Talisman Group's subsidiary in East Timor, of certain expenses for income tax purposes. This line of questioning is at a very preliminary stage of debate with the authorities.

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Commitments

There have been no additional significant changes in the Company’s expected future commitments, and the timing of those payments, since December 31, 2014.

19. OTHER INCOME

	Three months ended June 30				Six months ended June 30
	2015		2014		2015		2014
Pipeline and customer treating tariffs		11		16		26		33
Investment income		4		2		6		10
Interest on loan to TSEUK (note 6)		5		11		10		19
Marketing and other income		21		1		39		15
		41		30		81		77

20. OTHER EXPENSES, NET

	Three months ended June 30				Six months ended June 30
	2015		2014		2015		2014
Foreign exchange loss		27		10		5		5
Restructuring		23		14		35		17
Transaction costs1		39		-		41		-
Other miscellaneous		41		13		65		22
		130		37		146		44

1. Costs incurred in relation to the acquisition of Talisman by Repsol.

21. INCOME TAXES

Current Income Tax Expense

	Three months ended June 30						Six months ended June 30
	2015			2014			2015			2014
North America		3			5			(5	)		4
Southeast Asia		62			108			129			224
North Sea		1			(1	)		1			(1	)
Other		(1	)		22			10			38
Total		65			134			135			265

Deferred Income Tax (Recovery) Expense

	Three months ended June 30						Six months ended June 30
	2015			2014			2015		2014
North America		206			(8	)		177		44
Southeast Asia		42			22			15		13
North Sea		(12	)		6			24		3
Other		20			(7	)		16		3
Total		256			13			232		63

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During the three month period ended June 30, 2015, the deferred tax expense (recovery) was impacted by a $37 million charge related to a substantively enacted Alberta corporate tax rate increase of 2%. In addition, as a result of the acquisition by Repsol, the Company recorded additional tax expense totaling $275 million related to the derecognition of certain tax assets.

22. SUPPLEMENTAL CASH FLOW

Items Not Involving Cash

	Three months ended June 30						Six months ended Jun 30
	2015			2014			2015		2014
Depreciation, depletion and amortization		379			430			790		822
Impairment, net of reversals		-			(32	)		48		(32	)
Dry hole		-			11			13		28
Share-based payments expense (recovery)		(2	)		23			-		(8	)
(Gain) loss on disposals		4			5			9		(554	)
Unrealized loss on held-for-trading financial instruments		955			125			1,268		128
Deferred income tax		256			13			232		63
Foreign exchange		29			8			13		6
Loss from joint ventures and associates, after tax		107			37			314		31
Other		4			17			12		29
		1,732			637			2,699		513

Other Cash Flow Information

	Three months ended June 30				Six months ended June 30
	2015		2014		2015		2014
Cash interest paid		76		72		130		125
Cash interest received		1		1		1		24
Cash income taxes paid		75		150		147		331

23. CASH AND CASH EQUIVALENTS

Of the cash and cash equivalents balance of $168million (December 31, 2014 - $262 million), the entire balance (December 31, 2014 - $262 million) has been invested in bank deposits. There were no investments in highly rated marketable securities with original maturities of less than three months as at June 30, 2015.

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24. RELATED PARTY DISCLOSURES

Interest in subsidiaries

The interim condensed Consolidated Financial Statements include the financial statements of Talisman Energy Inc. and its directly or indirectly owned subsidiaries. Transactions between subsidiaries are eliminated on consolidation. The following table lists the material operating subsidiaries owned directly or indirectly by Talisman as at June 30, 2015:

Name of Subsidiary	Jurisdiction of Incorporation	Percentage of Voting Securities Owned
Talisman Energy Canada¹	Alberta	100%
Talisman Energy USA Inc.	Delaware	100%
Talisman Alberta Shale Partnership	Alberta	100%
Talisman Energy Norge AS	Norway	100%
Talisman (Corridor) Ltd.	Barbados	100%
Talisman (Vietnam 15-2/01) Ltd.	Alberta	100%
Talisman Malaysia Limited	Barbados	100%
Talisman Malaysia (PM3) Limited	Barbados	100%
Talisman (Algeria) B.V.	The Netherlands	100%

1. Talisman Energy Canada is an Alberta general partnership which currently carries on substantially all of Talisman’s conventional Canadian oil and gas operations.

Related party transactions with Repsol and Joint Ventures

In June 2015, Talisman (Algeria) B.V. (“TABV”) entered into a Sale and Purchase Agreement with Repsol Trading S.A., a subsidiary of Repsol, under which TABV will sell to Repsol approximately 615,000 barrels of Saharan Blend Crude Oil for an estimated $38 million.  The sale price per barrel is based on June Dated Brent price of US$61.69/barrel minus the agreed differential of US$0.28/barrel. As at June 30, 2015, the amount included in accounts receivable balance as a result of this sale was $38 million.

Other transactions between Talisman and subsidiaries of Talisman’s parent, Repsol, since May 8, 2015, are disclosed in note 4 and note 14. Related party transactions with joint ventures are disclosed as part of note 6 and note 19.

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25. SEGMENTED INFORMATION

Talisman's activities are conducted in four geographic segments: North America, the North Sea, Southeast Asia and Other. The North America segment includes operations and exploration in Canada and the US. The Southeast Asia segment includes operations and exploration activities in Indonesia, Malaysia, Vietnam, Papua New Guinea and in Australia/Timor-Leste. The North Sea segment includes operations and exploration activities in the UK. The Company also has non-operated production in Algeria, operations and exploration activities in Colombia, and exploration activities in the Kurdistan Region of Iraq. Furthermore, the Company is in the process of exiting Peru. For ease of reference, all of the activities in Algeria, Colombia, Peru and the Kurdistan Region of Iraq are referred to collectively as the Other geographic segment. All activities relate to the exploration, development, production and transportation of oil, liquids and natural gas.

	North America (1)												Southeast Asia (2)
	Three months ended June 30						Six months ended June 30						Three months ended June 30				Six months ended June 30
(millions of US$)	2015			2014			2015			2014			2015		2014		2015			2014
Revenue
Sales		258			486			502			1,018			298		556		622			1,097
Other income		23			7			45			27			-		-		1			1
Income (loss) from joint ventures, after tax		-			-			-			-			-		-		-			-
Total revenue and other income		281			493			547			1,045			298		556		623			1,098
Segmented expenses
Operating		114			134			241			268			60		130		169			252
Transportation		23			18			51			39			13		12		28			27
DD&A		252			296			509			562			112		114		250			230
Impairment, net of reversals		-			(32	)		-			(32	)		-		-		48			-
Dry hole		-			-			-			-			-		11		(1	)		28
Exploration		45			3			47			9			18		22		36			39
Other		80			22			109			31			21		1		23			2
Total segmented expenses		514			441			957			877			224		290		553			578
Segmented income (loss) from continuing operations before taxes		(233	)		52			(410	)		168			74		266		70			520
Non-segmented expenses
General and administrative
Finance costs
Share-based payments expense (recovery)
Currency translation
(Gain) loss on held-for-trading
financial instruments
(Gain) loss on asset disposals
Total non-segmented expenses
Income (loss) before taxes from continuing operations
Capital expenditure
Exploration		13			31			39			45			40		31		45			60
Development		120			242			292			556			25		68		63			146
Exploration and development		133			273			331			601			65		99		108			206
Acquisitions
Proceeds on dispositions
Other non-segmented
Net capital expenditures
Property, plant and equipment								6,429			6,321							1,972			2,223
Exploration and evaluation assets								1,371			1,345							719			667
Goodwill								110			110							169			169
Investments in joint ventures and associates								-			-							-			-
Other								410			555							613			740
Assets held for sale								-			-							-			-
Segmented assets								8,320			8,331							3,473			3,799
Non-segmented assets
Total assets (5)
Decommissioning liabilities (5)								663			381							313			334

	Three months ended June 30				Six months ended June 30
1. North America	2015		2014		2015		2014
Canada		118		197		232		458
US		163		296		315		587
Total revenue and other income		281		493		547		1,045
Canada						2,593		2,507
US						3,836		3,814
Property, plant and equipment (5)						6,429		6,321
Canada						910		871
US						461		474
Exploration and evaluation assets (5)						1,371		1,345
	Three months ended June 30				Six months ended June 30
2. Southeast Asia		2015		2014		2015		2014
Indonesia		170		265		345		528
Malaysia		80		132		168		286
Vietnam		39		114		78		216
Australia		9		45		32		68
Total revenue and other income		298		556		623		1,098
Indonesia						905		941
Malaysia						626		698
Vietnam						245		308
Papua New Guinea						132		143
Australia						64		133
Property, plant and equipment (5)						1,972		2,223
Indonesia						45		37
Malaysia						87		41
Vietnam						192		191
Papua New Guinea						395		398
Exploration and evaluation assets (5)						719		667
5. Current year represents balances at June 30. Prior year represents balances at December 31.

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	North Sea (3)												Other (4)									Total
	Three months ended June 30						Six months ended June 30						Three months ended June 30					Six months ended June 30				Three months ended June 30						Six months ended June 30
(millions of US$)	2015			2014			2015			2014			2015			2014		2015		2014		2015			2014			2015			2014
Revenue
Sales		-			-			-			-			61			99		97		149		617			1,141			1,221			2,264
Other income		5			11			10			19			13			12		25		30		41			30			81			77
Income (loss) from joint ventures, after tax		(115	)		(60	)		(321	)		(77	)		8			23		7		46		(107	)		(37	)		(314	)		(31	)
Total revenue and other income		(110	)		(49	)		(311	)		(58	)		82			134		129		225		551			1,134			988			2,310
Segmented expenses
Operating		-			-			-			-			19			16		34		23		193			280			444			543
Transportation		-			-			-			-			4			9		11		15		40			39			90			81
DD&A		-			-			-			-			15			20		31		30		379			430			790			822
Impairment, net of reversals		-			-			-			-			-			-		-		-		-			(32	)		48			(32	)
Dry hole		-			-			-			-			-			-		14		-		-			11			13			28
Exploration		20			-			20			-			15			19		19		35		98			44			122			83
Other		4			2			4			(1	)		(2	)		2		5		7		103			27			141			39
Total segmented expenses		24			2			24			(1	)		51			66		114		110		813			799			1,648			1,564
Segmented income (loss) from continuing operations before taxes		(134	)		(51	)		(335	)		(57	)		31			68		15		115		(262	)		335			(660	)		746
Non-segmented expenses
General and administrative																							83			103			167			205
Finance costs																							79			83			163			166
Share-based payments expense (recovery)																							(19	)		23			(24	)		(9	)
Currency translation																							27			10			5			5
(Gain) loss on held-for-trading																							131			171			(62	)		231
financial instruments
(Gain) loss on asset disposals																							4			5			9			(554	)
Total non-segmented expenses																							305			395			258			44
Income (loss) before taxes from continuing operations																							(567	)		(60	)		(918	)		702
Capital expenditure
Exploration		-			-			-			-			(4	)		41		9		90		49			103			93			195
Development		-			-			-			-			11			2		20		7		156			312			375			709
Exploration and development		-			-			-			-			7			43		29		97		205			415			468			904
Acquisitions																							8			13			8			13
Proceeds on dispositions																							-			(52	)		-			(1,392	)
Other non-segmented																							16			16			19			20
Net capital expenditures																							229			392			495			(455	)
Property, plant and equipment								-			256								253		264								8,654			9,064
Exploration and evaluation assets								-			125								398		407								2,488			2,544
Goodwill								-			-								-		-								279			279
Investments in joint ventures and associates								-			-								530		523								530			523
Other								456			2,051								269		301								1,748			3,647
Assets held for sale								1,530			-								-		-								1,530			-
Segmented assets								1,986			2,432								1,450		1,495								15,229			16,057
Non-segmented assets																													3			1,273
Total assets (5)																													15,232			17,330
Decommissioning liabilities (5)								-			1,176								29		37								1,005			1,928

	Three months ended June 30						Six months ended June 30
3. North Sea	2015			2014			2015			2014
UK		5			11			10			19
Norway		-			-			-			-
Loss from TSEUK		(115	)		(60	)		(321	)		(77	)
Total revenue and other income		(110	)		(49	)		(311	)		(58	)
UK								-			-
Norway								-			256
Property, plant and equipment (5)								-			256
UK								-			-
Norway								-			125
Exploration and evaluation assets (5)								-			125
	Three months ended June 30						Six months ended June 30
4. Other		2015			2014			2015			2014
Algeria		54			72			78			107
Colombia6		28			62			51			118
Total revenue and other income		82			134			129			225
Algeria								203			224
Colombia								50			40
Property, plant and equipment (5)								253			264
Colombia								202			208
Kurdistan								196			199
Exploration and evaluation assets (5)								398			407
5. Current year represents balances at June 30. Prior year represents balances at December 31.
6. Balances include after-tax equity income from Equion.

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