Talon’s latest Perth Basin gas project ticks final boxes before production

Gas could be flowing as early as April from the Perth-based Walyering Gas Project, run by Talon Energy (ASX: TPD) and Strike Energy (ASX: STX), with key regulatory approvals now signed. Targeting gas production capacity of 33 terajoules per day and 300 barrels per day, the following approvals have now been granted:

• Part V works approvals,

• Pipeline License, and

• Environmental Plan

This means construction can now begin on EP447, which is jointly owned by Talon (45%) and Strike (55%).

In mid-March, Talon managing director and CEO Colby Hauser indicated the production facility would cost approximately $19.2 million, with an additional estimated $3.8 million for the connection and metering to the APA Group (ASX: APA) owned Parmelia Gas Pipeline. Strike, the project’s operator, expects construction will take around six weeks to complete – meaning production and gas sales are on track to begin in April. The only risks to this schedule are potential delays in the integration and connection to the Parmelia Gas Pipeline, and quality assurance assessments of the upstream facility.

What’s next?

The workover rig is currently on Walyering-5, before moving to Walyering-6 to install the production completions. Management indicates that the solar array installation is progressing well, and much of the equipment and fabricated materials needed for the build are already on site.

Milestones so far

3 March 2023 - $14 million capital raising announced, comprising $12 million and $2 million share placement and share purchase plan.

12 January 2023 – Production license granted by WA Government

14 December 2022 – Five-year deal struck with Santos (ASX: STO) for the supply of 36.5PJ of gas on a take-or-pay basis

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.