Talon Petroleum (ASX: TPD) is set to be admitted to the Official List of the ASX today following its successful demerger from parent company Texon Petroleum (ASX: TXN).
The new entity will hit the ASX boards at 12pm (AEDT) on Thursday 28 February with around 98.1 million shares on issue.
Talon is an exploration and appraisal focused oil and gas company, with a portfolio that includes a mix of production, development, appraisal and exploration assets.
The company holds Texon’s non-Eagle Ford Shale assets including:
- Oil production from a well in the Olmos reservoir within the Mosman-Rockingham Olmos oil project, and also from a well in the Wilcox reservoir, in McMullen County, Texas;
- 29 undeveloped Olmos reservoir well locations within the Mosman-Rockingham Olmos oil project;
- A 47.4% Working Interest in the Roundhouse oil project;
- Oil and gas leases located in East Texas; and
- Access to 180 3D seismic surveys covering an area of 82,000 square miles in Southeast Texas.
Texon decided to demerge its non- Eagle Ford Shale assets to unlock value currently not being reflected in the company’s share price.
The separation of the non- Eagle Ford Shale assets will also generate substantial funding for Talon develop the high potential assets.
Talon is expected to have cash reserves of between $7.8 and $8.8 million on completion of the demerger.
South Texas Projects
Talon’s Mosman-Rockingham Olmos oil project currently has Proved, Probable and Possible Reserves of 1.3 million barrels of oil equivalent (MMboe) with Resource potential for 3MMboe.
This prospect is defined by 3D seismic data and, based on 40 acre spacing, holds up to 29 well locations for the Olmos reservoir.
Additional upside may be developed utilising horizontal drilling and fracturing technologies.
East Texas Projects
The Roundhouse oil project is located in East Texas and is a north-eastern extension of the Cheneyboro oil field in Navarro County, Texas.
It is a moderate to low risk prospect with potential for 10 to 12MMboe.
Talon has a 47.4% working interest in the Roundhouse (Cotton Valley Lime Reservoir) prospect and a test well is planned for drilling in mid-2013.
Red Fish, Catfish Creek and East Banks
Talon has leased 2,917 net working interest acres targeting shallow oil reservoirs previously produced in old vertical wells with little or no reservoir stimulation defined by 2D seismic data and historical production data.
Based on 80 acre spacing and Talon’s current working interest, there are 36 locations that between them have gross potential of 4.8MMboe.
Talon has set a target of leasing 20,000 net working interest acres in these prospects and, if successful, there may be up to 250 locations with a gross potential of 33MMboe.
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