A new JV gas project is coming to the Perth Basin

ASX-listed energy smallcap Talon Energy (ASX: TPD) confirmed its moving ahead with Triangle Energy (ASX: TEG) in developing two Perth Basin gas permits on Thursday. 

The process finalises an expression of interest from Talon in both the WA L7 and EP437 licences first made back in December last year. 

New Zealand Oil & Gas (ASX: NZO) is entering the JV as a third party. In January, NZO confirmed it would pay $9m in capital expenditure for early-stage development at the project—namely, seismic and well drilling costs.

Talon to pay in 2024 

Talon will pay approximately $7.3 million next year to cover the cost of developing the three exploration wells. Preliminary rehabilitation works will be carried out by TEG.

Talon’s interest is due to an estimate which suggests some 600 billion cubic feet (bcf) of gas could be extracted.

Triangle minted that prospective resource of 617bcf in April 2022. 

NZOG on-board in May

Talon noted on Thursday NZO requires until May to finalise drafting its relevant documentation needed to move towards official joint operatorship. 

“The completion of the Agreement with Triangle marks the next step in the evolution of Talon and fleshes out our plans for growth in 2024,” Talon chief Colby Hauser said. 

“We are very pleased to be partnering with Triangle and NZOG, companies that share a similar corporate and technical ethos with Talon.”

Having completed its Farm-In Agreement with TEG, Talon is now entitled to acquire a tranche of 3D Seismic data called the “Bookara” set, which covers the permit area(s) and allows Talon a greater deal of autonomy to appraise and explore the project. 

Talon’s second Perth Basin stake 

It won’t be Talon’s first foray into the Perth Basin. 

It already has government approval to produce gas from its Walyering project in the same basin area, after making a positive Final Investment Decision (FID) in August last year. 

That project sees Talon partner up with Strike Energy (ASX: STX).

The company also remains active in Mongolia’s Gobi Desert as part of its partnership with TMK Energy (ASX: TMK) at the Gurvantes XXXV Project. 

A look at TPD's one year performance chart. As at 10:45am (AEST) on Thursday, TPD is currently in a trading halt.

Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Talon was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.