Talon finds new gas in Perth Basin as second Mongolia well underway

Talon Energy (ASX:TPD) through its Perth Basin partnership with Strike Energy (ASX:STX) has drilled a new well in the Perth Basin Cattamarra Coal Measures, Walyering-6, revealing a new gas discovery in the Cadda Formation with 4m of net pay at 2,683m depth. 

On top of the new Cadda gas discovery, the partnership has also struck a 21m thick payload in the Cattamarra Sandstones. 

Meanwhile, new production test results for Walyering-5 provide evidence suggesting a large connected gas field underneath the ground, a promising indication for the forward development of the Walyering gas field. 

Strike Energy Limited holds 55% of the JV, and Talon Energy retains 45%; the project is in the boundaries of WA permit EP447. 

Map showing the location of Walyering-5

B & C Sands the key targets for the company 

Gas bearing geology detected in the Cattamarra Sandstones are located mostly across the B & C Sands, with the A Sand returning low gas saturation (blamed on a breached seal,) and, the D Sand containing "immaterial" streaks of net gas pay. 

Based on this, Walyering-6 will target the B & C Sands for future production testing of Walyering-6. Samples of gas from the newly identified Cadda Formation well will be sent to a laboratory for compositional analysis; the Cadda target will be included in the Walyering-6 flow test. 

Across to Mongolia…

Investors will also be interested in looking across to Mongolia, where Talon Energy has commenced drilling its Snow-Leopard 2 well onsite the Gurvantes XXXV CSG project in the Southern Gobi. 

That well is being spud alongside project partner TMK Energy (ASX:TMK). TMK Energy's share price is up 10% in post-lunch trades. The two Australian companies are two of a small handful of players active in the Mongolia region, both companies report a good standing with government resources officials.

SL-2 is underway as the results from SL-1 remain pending with the company confident gas contents will reflect the upper end of estimates attached to initial data. 

Snow Leopard-2 is located some 5km to the east of SL-1. Talon Energy notes upon the completion of SL-2, a further two drill holes will be launched on-site "over the next 2-3 months." 

After all four wells are drilled, data from the quad will be used to inform the design of a pilot well program intended to de-risk the asset and demonstrate the commercial potential of the development of gas resources on-site the company's mammoth Mongolian acreage. 

Talon expects the pilot well program to launch in the second half of 2022. 

Talon Energy's charts across the last twelve months compared to the Energy Index