Talon Energy (TPD) will transition from gas explorer to producer early next year as it progresses the Walyering joint venture project in the Perth Basin of Western Australia.
The Walyering project is shared with ASX-lister Strike Energy (STX) who operates the JV and owns 55 per cent of the project. Talon Energy owns the remaining 45 per cent.
Talon also holds a third stake in the development of the Gurvantes XXXV CSG project with operator TMK Energy (TMK). The Gurvantes project lies within the South Gobi Desert of Mongolia, about 20 kilometres from the Chinese border.
After presenting to investors at the RIU Good Oil and Gas Energy Conference in Perth, TPD Managing Director and CEO Colby Hauser will travel Mongolia to check on progress at the Gurvantes project.
“It will be my first time in country,” he said.
“We’ve had a tonne of drilling success, it’s attracting interest from national oil companies in China – it’s looking really, really exciting.
“As non-operators, we are quite a capital-efficient business. We have significant near-term cash flow coming from Walyering, our other project.
“As we transition from explorer to producer, that’s a pathway with little precedence, but a lot of different value catalysts along that journey.
“I think there’s a fever almost, oil and gas is obviously back as a key investment thematic: Gas prices are high; oil prices are high; we are lucky to be bringing on a project in literally the best oil and gas environment Western Australia’s seen in the last decade. So we’re excited by that.”
Talon Energy and Strike Energy’s Walyering project is due to be in production during the first quarter of next year.
TPD raised almost $15 million this year to fund Walyering gas field development and operations in Mongolia. Its cash balance stands above $10 million.
The company’s shares were trading at 15 cents just before market close.