Page 11

Exhibit 1CANADIAN OCCIDENTAL FINANCIAL STATEMENTS

(millions of dollars, except per share data)

Consolidated Statement of Operations

(year ended December 31)

Revenues

Net Sales

Profit from Disposition of Assets

Interest and Other Income

Expenses

Cost of Sales

Selling, Administrative and Other Operating

Depreciation

Depletion and Amortization

Exploration

Interest, Net

Income Before Income Taxes

Provision for Income Taxes

Net Income

Net Income per Share

Dividends per ShareSource: Canadian Occidental Annual Report, 1996.

9A97N014

Exhibit 1CANADIAN OCCIDENTAL FINANCIAL STATEMENTS

(millions of dollars, except per share data)

1996 1995 1994

$ 1,362 $ 1,180 $ 1,015

18 23 28

18 25 14

1,398 1, 228 1, 057

395 376 365

74 75 66

91 84 71

345 342 279

119 49 42

55 62 73

1,079 988 896

319 240 161

129 99 65

$ 190 $ 141 $ 96

$ 1.40 $ 1. 05 $ 0. 72

$ 0.30 $ 0. 22 $ 0. 19

Page 12

Consolidated Balance Sheet

(as of December 31)

Assets

Current Assets

Cash and Short-term Investments

Accounts Receivable

Income Taxes Receivable

Inventories and Supplies

Pre-paid Expenses

Total Current Assets

Property, Plant and Equipment

Deferred Charges and Other Assets

Total Assets

Liabilities and Shareholders' Equity

Current Liabilities

Accounts Payable and Accrued Liabilities

Income Taxes Payable

Accrued Interest Payable

Dividends Payable

Total Current Liabilities

Long-term Debt

Deferred Income Taxes

Dismantlement and Site Restoration Allowance

Other Deferred Credits and Liabilities

Minority Interest

Shareholders' Equity

Common Shares

Contributed Surplus

Retained Earnings

Cumulative Foreign Currency Translation Adjustment

Total Shareholders' Equity

Total Liabilities and Shareholders' EquitySource: Canadian Occidental Annual Report, 1996.

9A97N014

Exhibit 1 (continued)

1996 ###

$ 109 $ 45

242 205

4 16

62 53

11 13

428 332

1,955 1, 882

21 37

$ 2,404 $ 2,251

$ 270 $ 237

7 -

11 10

10 8

298 255

572 674

197 183

117 113

53 56

44 40

314 294

14 14

715 566

80 56

1,123 930

$ 2,404 $ 2,251

Page 13

Consolidated Statement of Operations

(year ending December 31)

R ev enue

Royalty expense

Operating and administrative expense

Restructuring expense

Interest expense

Depletion, depreciation, and amortization

Exploration expense

Gain (loss) on property dispositions

Earnings before taxes

Capital and large corporation taxes

Earnings

Earnings per share

Exhibit 2WASCANA ENERGY FINANCIAL STATEMENTS

(millions of dollars, except for per share amounts)

$

$

- basic $

- fully diluted $

9A97N014

Exhibit 2

1996 1995

(restated)

539.3 $ 485.7

117. 0 90.8

166.1 162.4

5.4 11.6

17.4 16.4

141.1 141.5

43.7 47.2

4.5 (1.4)

53.1 14.4

18. 5 13.8

34.6 $ 0.6

0.43 $ 0.01

0. 41 $ 0.01

Page 14

Consolidated Balance Sheets

(as of December 31)

Assets

C ur r ent as s et s

Accounts receivable

Inventories and prepaid expenses

Plant, property and equipment

Total Assets

Liabilities

Current liabilities

Accounts payable

Current portion of long-term debt

Long-term debt

Other liabilities

Total Liabilities

Shareholders' Equity - Share Capital

- Retained Earnings

Total Liabilities and Shareholders' EquitySource: Wascana Annual Report, 1996.

9A97N014

Exhibit 2 (continued)

1996 1995

(restated)

$ 188.5 $ 182.1

27.6 26.5

216.1 208.6

831.2 713.5

$ 1,047.3 $ 922.1

$ 220.2 $ 192.2

- 2.5

244.8 185.2

27.6 26.5

$ 492.6 $ 406.4

$ 573. 4 $ 569

( 18. 7) (53.3)

$ 554.7 $ 515.7

$ 1,047.3 $ 922.1

Page 15

Real GDP Growth %

Exports US$ billion

Imports US$ billion

Current Account US$ billion

Consumer Price Inflation %

Exchange Rate avg. (Cdn$/US$1)

Bank of Canada Rate % avg.

Government of Canada 30-year bond rate % avg.

Population (million)Sources: EIU Country Report, February 4, 1997; Datastream International.

Notes: (a) EIU estimate.

Average Annual Returns in Canadian Capital Markets: (1924–1994)

Treasury Bills

Long-term Government of Canada Bonds

Inflation Rate

Common SharesSource: Laurence Booth, “On Shaky Ground,” Canadian Investment Review, Spring, 1995.

Exhibit 3SELECTED CANADIAN ECONOMIC DATA

###

2.3

###

###

–8.7

2.1

1

7

Government of Canada 30-year bond rate % avg. 8

30Sources: EIU Country Report, February 4, 1997; Datastream International.

Average Annual Returns in Canadian Capital Markets: (1924–1994)

Geometric Arithmetic

Average Average

5.01 5.11

Long-term Government of Canada Bonds 5.51 5.84

3.19 3.29

10.11 11.79Source: Laurence Booth, “On Shaky Ground,” Canadian Investment Review, Spring, 1995.

9A97N014

1996

1.4 a

213.3 a

178.8 a

3.4 a

1.6

1.36

4.67

7.23

30.1

Page 17

Oil — WTI (US$/bbl)

Oil — Wascana Average Price* (Cdn$/bbl)

Gas — NYMEX (US$/mmbtu)+

Gas — AECO (Cdn$/mmbtu)

Gas — Wascana Average Price* (Cdn$/mcf)Notes:

(+) — mmbtu = million British thermal units of natural gas

(*) — The Wascana average price is the price resulting from hedging. The forecast predicts hedging losses of $29 million in

1997 and $2 million in 1998.

Source: Wascana Directors’ Circular, March 10, 1997.

Exhibit 5ACTUAL AND PROJECTED COMMODITY PRICES

Actual

1996 1997

$22.01 $20.40

Oil — Wascana Average Price* (Cdn$/bbl) 20.31 19.46

$2.55 $2.03

1.32 1.63

Gas — Wascana Average Price* (Cdn$/mcf) 1.5 1.65

(+) — mmbtu = million British thermal units of natural gas

(*) — The Wascana average price is the price resulting from hedging. The forecast predicts hedging losses of $29 million in

Source: Wascana Directors’ Circular, March 10, 1997.

9A97N014

Projected

1998

$20.51

19.97

$2.10

1.88

1.82

Page 18

Exhibit 6TALISMAN ENERGY FINANCIAL STATEMENTS

Consolidated Statement of Income

(millions of dollars, except per share figures)

Revenue (net of royalties)

Expenses

Operating

General and administrative

Depreciation, depletion and amortization

Dry hole and exploration expense

Interest on long-term debt

Other (net)

Income before Taxes

T axes

Income taxes - current

Income taxes - deferred

Petroleum revenue tax

Net Income (from continuous operations)

Net Income per Common Share

Cash Flow per Common Share

Consolidated Balance Sheet

(millions of dollars)

Assets

Current assets

Pension and other assets

Property, plant and equipment

Total Assets

Liabilities and Shareholders' Equity

Liabilities

Current liabilities

Other liabilities

Long-term debt

D ef er r ed t ax es

Shareholders' Equity

Share capital and contributed surplus

Retained earnings

Total shareholders' equity

Total Liabilities and Shareholders' EquitySource: Talisman Energy Inc. Annual Report, 1996.

9A97N014

Exhibit 6TALISMAN ENERGY FINANCIAL STATEMENTS

Year ended Year ended

December 31, 1996 December 31, 1995

$1,212.8 $899.2

299.5 245

56.3 56.6

420.6 369.1

128.9 76.3

68.7 86.4

(26.2) (30.3)

947.8 803.1

265 96.1

51.3 10.8

84.3 50.5

34.5 -

170.1 61.3

$94.9 $34.8

$0.91 $0.36

$7.07 $5.11

December 31, 1996 December 31, 1995

$361. 7 $255.8

56.9 51

3,332.6 2,733.5

$3,751.2 $3,040.3

$337.7 $224.9

107.4 78.9

898.7 906. 0

313. 4 204.2

1,657.2 1,414.0

1,863.6 1,490.8

230. 4 135.5

2,094.0 1,626.3

$3,751.2 $3,040.3

Page 19

Exhibit 7STOCK PRICE COMPARISON

Date Wascana Talisman

Energy Energy

1/1/96 $12.88 $27.63

1/1/97 15.8 45.6

2/3/97 16.65 47.4

2/4/97 17 47.2

2/5/97 17 46.25

2/6/97 17.25 44.8

2/7/97 16.75 44.4

2/10/97 16.1 43.2

2/11/97 16.4 44.9

2/12/97 16.95 45.15

2/13/97 19 46.25

2/14/97 19.1 46.3

2/17/97 19.1 46.3

2/18/97 19 46.45

2/19/97 18.9 45.8

2/20/97 18.6 44.15

2/21/97 18.75 45.65

2/24/97 18.85 46

2/25/97 18.55 45.05

2/26/97 18.5 45.4

2/27/97 18.6 44.75

2/28/97 18.45 44.45

3/3/97 18.4 44.3

3/4/97 18.55 44.95

3/5/97 18.9 44.5

3/6/97 18.7 44.15

3/7/97 18.75 44.45

3/10/97 18.95 44.25

3/11/97 19.1 43.9

3/12/97 19.15 44.2

3/13/97 19.4 44

3/14/97 19.4 43.95Notes: (1) — Toronto Stock Exchange Composite Index

Source: Datastream International.

9A97N014

Exhibit 7STOCK PRICE COMPARISON

Canadian TSE 300 TOGP

Occidental Index1 Index2

$22.37 4713.5 4794.1

22.05 5927.03 6577.2

25.35 6140.93 6973.5

25.15 6145.41 6895.3

24.95 6112.41 6805.1

24.2 6071.89 6607.2

23.25 6101.74 6523.8

23.15 6081.27 6331.2

23.4 6126.92 6425.6

23.4 6165.38 6440.6

24.1 6225.78 6568.8

24.1 6214.24 6590.2

24.55 6217.6 6608.4

24.4 6238.22 6599.3

24.15 6248.86 6506.9

23.65 6205.07 6389.1

23.8 6226.95 6443.1

24.1 6242.52 6448.7

23.65 6247.78 6376.7

23.4 6201.43 6369.9

23.4 6187.46 6351.1

23.1 6157.84 6234

22.85 6145.98 6214.1

22.85 6155.05 6282.4

22.75 6203.12 6319.1

22.7 6214.73 6304.3

22.5 6268.39 6397.7

22.7 6332.87 6432.6

22.95 6305.46 6443.5

22.9 6257.21 6414.8

22.8 6165.86 6323.1

23.45 6197.71 6375.2(2) — Toronto Oil and Gas Producers Index

Page 20

Exhibit 8WASCANA FINANCIAL FORECASTS

Consolidated Statements of Operations Forecasts

(millions of dollars except for per share amounts)

1997

Revenue

Operating

less Royalties

Expenses

Operating

General and Administrative

Depletion, Depreciation, and Amortization

Exploration

Interest

Earnings Before Taxes

Capital and Large Corporation Tax

Current Income Taxes

Deferred Income Taxes

Earnings

Earnings per Share - basic

Earnings per Share - fully diluted

Change in Working Capital Balances

Note: Cash flow sensitivity - (millions of Canadian dollars)

Oil price change - US$1.00 per bbl of WTI

$1.00 per bbl change in heavy oil differential

Gas price change - $0.10 per mmcf

Royalties - change of 1%

$0.01 change in US/Cdn exchange rate

Interest rate - change of 1%

Source: Wascana Directors’ Circular, March 10, 1997.

9A97N014

Exhibit 8WASCANA FINANCIAL FORECASTS

Consolidated Statements of Operations Forecasts

(millions of dollars except for per share amounts)

1998

$ 653 $ 866

( 131) ( 156)

522 710

152 184

36 38

161 210

61 57

21 22

431 511

91 199

19 23

- 33

23 24

$ 49 $ 119

$ 0.61 $ 1.46

$ 0.60 $ 1.43

( 7) ( 9)

1997 1998

$ 8.8 $ 16. 5

5.9 6. 5

5.2 5. 4

5.4 5. 1

2.5 3. 1

0.5 1. 1