Triangle Energy (Global) Ltd has successfully completed farm-out negotiations with Talon Energy Ltd (ASX:TPD), which will be acquiring a 25% interest in Permits L7 and EP 437 in the Perth Basin
TEG has signed a binding term sheet with Talon Energy, which sees Triangle maintain operatorship and a 75% interest in both permits.
As part of the agreement, Talon will reimburse 50% of the Bookara 3D seismic cost and pay 50% of the first well in L7 plus 37.5% of the second well drilled in L7. Talon will also acquire a 25% interest in permit EP 437 by paying their share of a well.
The terms of the agreement
- Payment of $1.9 million towards expenditure on the Bookara 3D seismic data;
- payment of $3.75 million of the estimated $7.5 million cost of the first well in Permit L7, (any additional costs to be on a per-interest basis);
- payment of $2.81 million of the estimated $7.5 million cost of the second well on the L7 Permit, (any additional costs to be on a per-interest basis); and
- payment of approximately $800,000 for a well in EP 437.
Once finalised, Talon will have paid a total $9.26 million for a 25% interest in the permits. Triangle Energy has previously acquired the Bookara 3D seismic data across both Permits.
Data from Bookara is being processed and early versions of the dataset have been delivered and are being evaluated.
The final dataset is still expected in late December.
This data is expected to confirm the potential of the permits and should see a reduction in risk of the very attractive portfolio of prospects and leads previously mapped within the permits.
Identification of well targets will be undertaken next year, leading to drilling expected in early 2024.
Welcoming Talon
TEG managing director Conrad Todd said, “I am pleased to report to shareholders that Triangle has successfully farmed out a 25% interest in the L7 and EP 437 Permits. We are delighted to welcome Talon, who are partners in the Walyering discovery in the Perth Basin and are about to become a gas producer.
“We look forward to working with Talon’s management and staff, who are acknowledged to be leading experts in the Perth Basin and who share our vision on the prospectivity of these permits. We are keen to now progress our exploration plans in 2023 to drill these exciting blocks in the Perth Basin together.”
"Leveraging combined expertise"
Talon’s managing director & CEO Colby Hauser said: “The execution of the binding Term Sheet for 25% interest in L7 and EP 437 with Triangle Energy represents the culmination of over six months of work evaluating the potential of the northern Perth Basin for potential gas reserves to build on the company’s recent success at the Walyering gas field.
"Talon is very pleased to be partnering with Triangle, a company that shares a similar corporate and technical ethos as Talon, and we look forward to both companies working closely together to leverage their combined expertise to continue to drive shareholder value through successful exploration.”