Natural Gas

Talon Energy rises on above expectation Perth Basin flow tests

Tue 03 May 22, 11:56am (AEST)
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Key Points

  • Flow rates from Walyering-5 well in Perth Basin the third strongest in Basin’s history
  • Tests covering Walyering-5 A and B Sands with maximum rates at 59 million standard cubic feet per day and 32 mmscfd respectively
  • Talon Energy holds a 45% stake in the EP447 Walyering asset, Strike Energy as operator retains majority 55%

Talon Energy (ASX:TPD) has risen 16% today on the news gas flow test rates in the Perth Basin conducted onsite Talon’s partially owned Walyering acreage are above previous expectations.

Through the Walyering-5 well, Talon has been instrumental in posting the third strongest ever flowrates recorded in the Perth Basin from the Walyering Gas Field alongside its partner in the project, Strike Energy (ASX:STX).

Analysis of the gas recovered, the partnership states, is of high quality with minimal impurities. In the A Sand, condensate gas ratios reflect 9 barrels per every million standard cubic feet of gas; in the B Sand, rates reflect 6bbl/mmscfd. 

Walyering-5 under testing with associated flare (supplied)
Walyering-5 under testing with associated flare (supplied)

Flowrates similar to Permian era geology further North

Logging the third highest test rate recovered from the area, Talon notes the flows are similar to that encountered in the Permian Gas Fairway further North which includes the well-known Waitsia, Greater Erregulla, Lockyer and Beharra deposits. 

Talon says gas quality produced from Walyering-5 is superior to that produced from all of the aforementioned assets. 

Liquids produced of light oil quality 

Talon Energy’s analysis of condensate liquids produced onsite reflect a light oil quality with an API between 39-47 and minimal associated water production. Across the comingled flowrate tests, total liquids produced were at 8bbl/mmscfd of light oil. 

The company further believes that, due to a high back pressure on the well while flowing, the impressive results provide evidence of a materially connected gas resource underground between both Sands. 

The company continues to assess bottom hole gauge data and revisions made will inform the final test results for the A, B, C, and D Sands onsite. 

Map detailing the location of Walyering-6 relative to Walyering-5
Map detailing the location of Walyering-6 relative to Walyering-5

Walyering-6 on radar next 

The impressive results from Walyering-5 leave Talon and its JV partner Strike Energy excited for the ongoing development of the Walyering-6 well, which is currently at a depth of 2,130m and targeting a total section depth of 2,400m. 

Surface casing has been run to 2,100m depth and cemented in place. Walyering-6 drills ahead at a 12/1-4” diameter. 

Talon is investigating minor upgrades to its facility design to allow for an increased throughput allowing for an upper potential estimate of 42 TJ/d production without requiring high added costs onsite.

Talon Energy's charts over the last 6 months; Talon is up 16% today in morning trade
Talon Energy's charts over the last 6 months; Talon is up 16% today in morning trade

 

Talon Energy was a Market Index client at the time of publishing. All coverage contains factual information only and should not be interpreted as opinion of financial advice.

 

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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