Curlew A

Talon has agreed to farm-in to a 10% interest in Licence P2396 (“the Licence”).

The Licence, operated by Corallian Energy Limited (“Corallian”) is located in the prolific Central Graben area of the UK North Sea and contains the Curlew‐A discovery made by Shell in 1979.

Highlights:

Significant un-appraised Tertiary aged oil discovery by Shell in 1979
Original well confirmed 10.5m net oil sands 36 °API oil recovered – high quality oil in good quality reservoir
Schlumberger independently certified gross 2C Contingent Resource of 45mmboe (4.5mmboe net to Talon)
Simple tie-back to nearby infrastructure
Significant prospective upside in prolific Forties sands to be tested as part of appraisal drilling
Appraisal drilling is planned for 3Q 2019

Farm-In terms

Talon to hold a 10% interest in Licence P2368 subject to regulatory approvals
Talon net share of 3-year initial phase costs – A$65k
Subject to entering next licence phase, Talon to participate in the drilling of the Curlew -A appraisal well
10% participating interest/15% paying interest capped at gross total well cost of A$21.8 million
Current well cost estimate – A$18 million
Talon net well cost A$3.3mm at promote cap

Competent Person’s Report – Schlumberger 2018 (“CPR”)

A CPR on Curlew-A was completed by Schlumberger in October 2018 and provides independent certification of the 45mmboe (gross 2C) Contingent Resources in the Odin and Cromarty reservoirs to be targeted by appraisal drilling in 2019.