Mongolia and Perth Basin centered Talon Power (ASX:TPD) on Monday confirmed its execution of a legally binding time period sheet with Triangle Power (ASX:TEG) to amass 25% of the latter’s ‘L7’ and EP437 permits.
Talon states there’s a low upfront capex and the deal stands with the good thing about latest 3D seismic knowledge.
Each permits are onshore licences; EP437 covers a good portion of land to the south east of Geraldton alongside WA’s coast; L7 sits contiguous on the backside proper of that package deal.
Talon says it has run its personal evaluation on each permits, discovering each to be commercially vital for the corporate.
Talon, as a part of its fund-in, should drill two wells at L7.
The primary properly is to be drilled in 2024 and Talon should pay 50% of what’s estimated to be a $7.5m challenge at $3.5m.
If the value runs overboard, Talon can pay 25% of extra prices.
The second properly at L7, additionally slated for 2024, shall be one other $7.5m train; however Talon should solely pay 37.5% of these prices as much as $2.8m. Extra will see Talon pay 25%.
All wells will goal early-Permian aged geological formations which underpin discoveries made in close by blocks together with Lockyer Deep.
Additional, a 3rd obligation sits atop Talon’s head: it should pay 25% of properly prices when a $3m asset is spud on the EP437 allow, additionally forecast to be drilled in 2024.
For these enjoying at house, that’s $7m from Talon: sufficient for the price of one of many L7 wells.
Six months of analysis
Triangle accrued 100% of each the EP437 and L7 property earlier this 12 months.
“[Moving toward[ 25% interest in L7 and EP 437 with Triangle Energy represents over six months of work evaluating the northern Perth Basin,” Talon chief Colby Hauser said.
“Talon is very pleased to be partnering with Triangle and we look forward to continuing to drive shareholder value through successful exploration.”
The state of Talon Energy’s three month charts
Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Talon Energy was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.