Talon Energy Ltd (ASX:TPD) welcomes news that the WA Department of Mines, Industry, Regulation and Safety (DMIRS) has granted a production licence for the Walyering Gas Project in Western Australia.
The project is run by joint venture partners Talon (45%) and Strike Energy Ltd (ASX:STX) (55% and operator).
Key approval
Securing the production licence is a key milestone for the development of the Walyering gas field and it has been obtained in line with the joint venture’s scheduled timeframes.
In other news, the upstream facility construction program is proceeding on schedule, with a procurement program 98% complete and offsite fabrication 65% complete.
The joint venture has also taken possession of the final sliding-sleeve well completion equipment for the Waylering-5 and Walyering-6 wells. This will enable the management of production from the various reservoirs.
On budget, on schedule
A workover rig is expected to mobilise to the site in mid-February to finish the well ahead of the start of production.
The upstream facility remains on budget and on schedule for commissioning and start-up by the end of the first quarter of this year.
Talon managing director and CEO Colby Hauser said: “With the gas sales agreement recently finalised, the project continues to complete major milestones at pace.
“The grant of the Walyering Production Licence is a key approvals milestone in Walyering’s development pathway.
“To date, all approvals have been granted in line with expectations and previous guidance.
“Additionally, the development and construction work is on schedule, with the well completions for both the Walyering 5 and 6 wells scheduled to commence in February, and offsite fabrication of the upstream processing facility now 65% complete.
“Talon is pleased with the progress of the project to date, and we look forward to welcoming the near-term free cashflow generated from production of the field.”