Talon sinks its teeth into fourth North Sea asset

By Trevor Hoey. Published at Jun 5, 2019, in Energy

North Sea oil and gas group, Talon Petroleum Ltd (ASX:TPD) has been offered a 50% interest in a licence over Blocks 12/26a and 12/27a in the North Sea via the UK 31st Offshore Licensing Round.

Talon undertook some company transforming initiatives in the March quarter as it entered into a binding heads of agreement for the purchase of all of the shares in EnCounter Oil Ltd.

The transaction provided the company with 100% ownership of two recently awarded, high-impact exploration licences in Skymoos and Rocket.

The newly awarded licence is the fourth UK North Sea asset acquired by Talon since the company embarked on its UK North Sea strategy in mid-2018.

The acquisition also provided additional benefits with Talon gaining access to a significant technical database and a highly-experienced UK North Sea management team with previous exploration success.

That technical team includes Graham Dorè and Paul Young who importantly also have an intimate knowledge of the licences offered.

Discussing these advantages and the strategic importance of the blocks in terms of the company’s broader strategy, Talon managing director, Matt Worner said, “We are extremely pleased to add another highly prospective licence to the Talon portfolio.

“This new licence includes the Vantage Prospect, which was identified by Talon’s technical team, Graham Dorè and Paul Young.

‘’The award of this licence shows we are delivering with our strategy to capture low-cost, high upside drilling targets via the regularly held UK Licensing Round process.’’

Further licences in pipeline and farmout imminent

Talon has recently applied for another licence in the 31st Supplemental Round and will shortly commence its consideration of licence areas proposed to be available in the 32nd Seaward Licensing Round, for which bids are due in late 2019.

In relation to the company’s established assets, Worner said “Additionally, we have started the farmout process for our Rocket and Skymoos prospects and we have received encouraging interest at this early stage.”

The new licence contains the Vantage Prospect, an Upper Jurassic stratigraphic trap updip of a known oil discovery well located within the licence area and contains a best estimate prospective resource of 44 million barrels of oil (mmbo).

Based on normal risking methodology used in the oil and gas industry, an estimated probability of commercial success for the Vantage Prospect, after all technical work has been completed, is expected to be in a range between 20% and 30%.

Interestingly, Talon jointly applied for the licence with Geoscience Services Limited (GSL), a company of which Dorè and Young are directors.

The bid for the licence was made prior to the company entering into the transaction with EnCounter Oil Limited, which brought Dorè and Young to the Talon team.

Building an impressive portfolio of assets

In addition to the newly awarded licence, Talon’s portfolio now includes a 10% participating interest in the Curlew-A discovery (Licence P2396) which contains 2C contingent resource of 45mmbo.

The company also has a 100% participating interest in two licences with a combined best estimate resource of 134 million barrels of oil equivalent (mmboe).

These are the Skymoos (licence P2363) and Rocket prospects (licence P2392), the locations of which can be seen below, with the Vantage prospect lying to the west of Skymoos.

Work program commitments for the initial two-year phase of the licences include poststack processing of 500 square kilometres of existing 3D seismic data and the acquisition of 150 line kilometres of existing 2D seismic data.

Management expects its share of the costs based on its 50% interest is approximately $60,000.


Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


SEE THE PORTFOLIO

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X