Seismic data confirms high-grade gas prospects for ASX Small Cap Talon Energy

Emerging oil and gas producer Talon Energy (ASX: TPD) is adding exploration upside to the mix after seismic data confirmed the presence of several attractive gas prospects at its L7 and EP 437 permits in WA.

Earlier this month, Talon completed farm-in agreements to acquire a 25% interest the L7 and EP437 northern onshore Perth Basin permits to complement its current oil and gas portfolio including Walyering, a WA-based project that’s targeting maiden gas production in the first half of 2023 and Gurvantas XXXV, which is set for pilot well testing in Mongolia during this year. 

The seismic survey identified three stand-out prospects named Booth, Huntswell Deep and Mountain Bridge South, which have an estimated combined resource between 167-753 bullion cubic feet (Bcf) of natural gas.

“These Prospects are meaningful in size; comparatively, the Walyering Project, has a 2P Reserve of 48.3 Bcf. Like Walyering, there is immediately proximity to established pipelines, significantly reducing potential development costs,” Talon said in a statement. 

Oil prospects have also been mapped for EP 437, of which the Becos prospect is estimated to have between 1-5 million barrels of oil equivalent.

Next steps: Gearing up for a 2024 drilling campaign

Talon and its joint venture partner Triangle Energy (ASX: TEG) plan to drill at least two of the attractive gas prospects in 2024. 

“The joint venture will now undertake further interpretation and in-depth technical studies in order to fully evaluate the potential of these prospects,” said Triangle Energy Managing Director Conrad Todd.

The next steps for L7 and EP 437 include:

• Signature and lodgement of joint operating agreements

• Finalise 3D seismic interpretation

• Undertake new petrophysical evaluation

• Refine prospects

• Well planning: Landholder consultation and environmental permissions

The joint venture is “actively looking at avenues to accelerate the drilling into early 2024,” said Talon Energy, with Well Project Management Consultancy, Aztech being brought on board to accelerate well design, approvals and drilling operations management.

Milestones so far

• 20 March: Talon and TMK Energy expands cooperation with Mongol Alt – enhances efficiency of Pilot Well Program and paves way for early energy commercialisation  

• 14 March: Production and sales of gas just six weeks away and targeting revenues of up to $30m per annum

• 3 March: Talon successfully raises $14m to launch the Walyering Gas Project 

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.