Talon moving into northern Perth Basin on Triangle Energy’s recently acquired turf

Mon 19 Dec 22, 10:51am (AEDT)
A road stretching to the horizon in the Australian outback beneath a blue sky
Source: Unsplash

Key Points

  • Talon teams up with Triangle Energy to move into its L7 and EP437 onshore permits
  • Talon will ultimately have to pay $7m in 2024 as drilling operations get underway
  • The northern Perth basin targets permian-age geology which host other significant nearby reserves

Mongolia and Perth Basin focused Talon Energy (ASX:TPD) on Monday confirmed its execution of a legally binding term sheet with Triangle Energy (ASX:TEG) to acquire 25% of the latter’s ‘L7’ and EP437 permits. 

Talon states there is a low upfront capex and the deal stands with the benefit of recent 3D seismic data. 

Both permits are onshore licences; EP437 covers a significant portion of land to the south east of Geraldton along WA’s coast; L7 sits contiguous at the bottom right of that package. 

Talon says it has run its own analysis on both permits, finding both to be commercially significant for the company. 


Talon, as part of its fund-in, must drill two wells at L7. 

The first well is to be drilled in 2024 and Talon must pay 50% of what is estimated to be a $7.5m project at $3.5m. 

If the price runs overboard, Talon will pay 25% of excess costs. 

The second well at L7, also slated for 2024, will be another $7.5m exercise; but Talon must only pay 37.5% of those costs up to $2.8m. Excess will see Talon pay 25%. 

All wells will target early-Permian aged geological formations which underpin discoveries made in nearby blocks including Lockyer Deep

Further, a third obligation sits atop Talon’s head: it must pay 25% of well costs when a $3m asset is spud at the EP437 permit, also forecast to be drilled in 2024. 

For those playing at home, that’s $7m from Talon: enough for the cost of one of the L7 wells.

Six months of evaluation 

Triangle accrued 100% of both the EP437 and L7 assets earlier this year. 

“[Moving toward[ 25% interest in L7 and EP 437 with Triangle Energy represents over six months of work evaluating the northern Perth Basin,” Talon chief Colby Hauser said. 

“Talon is very pleased to be partnering with Triangle and we look forward to continuing to drive shareholder value through successful exploration.”

The state of Talon Energy's three month charts
The state of Talon Energy's three month charts
Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Talon Energy 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.


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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.

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