Talon Energy Ltd (ASX:TPD) believes it could be sitting on a material gas opportunity thanks to three emerging prospects in the prolific Perth Basin.
Together with JV partners Triangle Energy (Global) Ltd and New Zealand Oil & Gas Ltd (ASX:NZO, OTC:NZEOF), the L7 joint venture vehicle has identified three standout targets that could each host upwards of 50 billion cubic feet of gas.
The Booth, Huntswell Deep and Mountain Bridge South prospects neighbour the Dampier-Bunbury Natural Gas Pipeline — a crucial energy source for several mining and resources hubs.
With the targets on its radar, the L7 venture plans to shortlist the two best prospects for drilling in 2024.
The Perth Basin prospects are located within the iconic Kingia Intervial.
Commercialisation front of mind
Talon managing director and CEO Colby Hauser said there had been plenty to do since Talon formally executed its farm-in with Triangle earlier this month.
“We have been working hard with our joint venture partners to advance our assessment of these Perth Basin assets so we can drill and hopefully commercialise what we hope to be significant gas resources,” he explained.
“Importantly, we have been able to identify and high-grade three sizeable gas prospects, two of which will be drilled in 2024.”
The JV vehicle uncovered the early-stage prospects during a resource assessment, focused on two key gas-bearing intervals covered by the L7 permit.
The latter formation, known generally as the Kingia Interval, is where large gas fields like Waitsia, West Erregulla, South Erregulla and Lockyer Deep have been discovered.
A closer look at some 3D seismic survey results revealed the Booth, Huntswell Deep and Mountain Bridge South targets — all located within the highly prospective Kingia Interval.
A prospective resource estimate for all three targets is outlined below:
By comparison, the Walyering Project (in which Talon holds a 45% stake) has a 2P reserve of 48.3 billion cubic feet. All prospects are proximal to established gas pipelines — infrastructure that significantly reduces potential development costs.
The L7 venture is buoyed by recent advancements in 3D imaging, which underscore its plan to permit two firm drill targets and drive its next stage of work.
Aztech Well Construction is onboard to facilitate well design and approvals and eventually manage the future drilling operation.
Talon, Triangle and New Zealand Oil & Gas will continue to hold the magnifying glass to the L7 and adjacent EP437 permit. Future work will resource uplift opportunities, as well as shortlisting the preferred EP437 prospect for a third well commitment in 2024.