The company said the $326 million loss, compared with a profit of $371 million a year ago, was down to unrealised losses arising from changes in the market value of held-for-trading financial instruments.
Talisman spent $116 million on international exploration, and while its focus remained on North America, it said PNG's Foreland Basin would be the focus of its 2011 PNG drilling program.
During the quarter, the Stanley-2 appraisal well was completed with combined peak gas flow rates of 71 million cubic feet per day from two zones.
Its Ubuntu-1 exploration well was suspended after a condensate-rich discovery, with the company currently looking at plans for an early condensate recovery scheme.
Meanwhile, regional seismic activities are ongoing and the company has agreed to take a 35% stake in PRL 21 which contains the Ketu and Elevala gas discoveries.
More broadly, the company averaged production of 444,000 barrels of oil equivalent per day, with production from ongoing operations up 14% from a year ago.
The company also agreed to sell 50% of its interest in its Farrel Creek Montey shale assets in the US to South African company Sasol and has reached agreement on a similar deal concerning its Cypress A holdings.
It also acquired a 49% interest in BP's Colombian subsidiary, BP Exploration Company, now called Equion Energia.