Natural Gas

Talon pawns UK offshore licence as Perth gas field shows strong

Tue 26 Apr 22, 12:50pm (AEST)
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Key Points

  • Talon Energy has sold 100% of its central UK North Sea P2527 licence to Finder Energy with Talon to earn 12.5% of future profits, but no upfront cost
  • Move comes as Talon’s Walyering Project shared with Strike Energy (55%) shows strong gas flows

Talon Energy (ASX: TPD) has today revealed it has awarded 100% of its central UK North Sea offshore oil and gas licence P2527 to Australian counterpart Finder Energy (ASX: FDR).

Talon has given the licence to Finder free of upfront charge with little explanation but does retain a right to 12.5% of profits made from either production or further development of the field, including farm-outs and like arrangements.

Despite some regulatory turbulence last year in the months preceding COP26, the UK’s energy independence has become a major theme of the Western response to Russia’s invasion of Ukraine. 

Following the Russian invasion, Shell announced it was assessing whether or not to backflip on its exit from the North Sea Cambo development. The UK North Sea is the primary source of domestically produced oil and gas products. 

The ultimate reason for the handover, though, currently remains unclear. 

Walyering-5 flow tests in Perth Basin promise gas 

That’s not it for Talon, today, its JV partner Strike Energy (ASX:STX) has posted its most recent flow test results onsite the Walyering Gas Field acreage. 

The project is located within the permit boundaries of WA licence EP477, with the JV (Strike 55%, Talon 45%) is seeking to produce domestic gas with oil sand tests partially complete and final tests underway. 

The strongest maximum flowrate onsite recorded was borne by the B-Sand which produced a rate of 33 million cubic square feet per day at 2,427psi on a 48/64" choke.

The C-Sand flowrates were close behind at 27mmscfd over 24 hours, and at times producing a rate of 33mmscfd.

Strike today notes parts of its acreage contain high quality sands with low levels of impurity reflecting oil-gas ratios of four to six barrels for every million square cubic foot of gas.  

Strike continues to drill its Walyering-6 well onsite; downhole progress is approaching 1 kilometre measured depth. 

Talon's share price was up 5.56% around noon today.

Talon's charts
Talon's charts

 

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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