Talon has enacted an asset strategy for the Onshore Perth Basin focussed on conventional reservoirs of natural gas, where possible enriched by associated condensate, that is, “Wet Gas”.
The Company is balancing its portfolio by acquiring interests in existing, as yet undeveloped discoveries together with higher risk exploration projects, then applying modern technologies for the first time to create the commercial breakthroughs.
Under a late 2019 farmin agreement with Strike Energy limited (Strike), Talon will acquire a 45% non- operated participating interest in EP 447, that holds the Walyering, conventional gas appraisal project.
Walyering holds a gross 86 Bcf (gas) and 2.18 mmbo (hydrocarbon liquids or condensate) and a Best Estimate Prospective Resource of 38.7 Bcf and 0.98 mmbo net to Talon.
The original discovery well at Walyering flowed naturally up to 13.5 MMCFD from the targeted Jurassic -age, sandstone reservoirs.
Newly acquired and interpreted 3D seismic over EP 447 has allowed Strike to apply its Perth Basin technical expertise to Walyering and reconcile past technical challenges with the prospect. Walyering is based on an analogous dataset and interpretation to West Erregulla-2 where similar amplitude blooms have proven to be excellent indicators of gas charged permeable reservoirs.
Additionally, Walyering’s proximity to infrastructure, low CO2 and high liquids component (~25bbls/mmscf), will assist with the reduction in development and production costs and commercial viability of the project in the event of success. Any development and production of gas at Walyering has the potential to be ideally timed to coincide with forecast contraction in gas supply in Western Australia in the next 3 to 4 years.
As part of the transaction with Strike, Talon also has a Right of First Refusal (“ROFR”) over EP 495 located on geological trend to the north. This permit area contains the as yet unapprasised Ocean Hill gas discovery, again hosted in Jurassic-age sandstone reservoirs.