- Talon Petroleum (TPD) has requested back-to-back trading halts pending the release of a capital raising announcement
- The company will remain in the halt until July 24 or when the announcement is made
- Talon also announced today that it has agreed to terms with Strike Energy (STX) which will see Strike farm-out a 45 per cent non-operated interest in the Walyering appraisal well in Western Australia
- Additionally, Talon will free carry Strike for the first $6 million of the estimated $9 million in costs to earn its 45 per cent interest
- The company will also pay Strike $1 million as security for its free carry obligations
- Shares in Talon last traded for 0.1 cents each on July 17
Talon Petroleum (TPD) has requested back-to-back trading halts pending the release of a capital raising announcement.
The company will remain in the halt until July 24 or when the announcement is made.
Talon also announced today that it has agreed to terms with Strike Energy (STX) which will see Strike farm-out a 45 per cent non-operated interest in the Walyering appraisal well in Western Australia.
However, this is subject to the execution of definitive transaction documentation and ministerial approval.
Of the estimated $9 million in costs relating from drilling, geophysical studies and the completion of one well, Talon will free carry Strike for the first $6 million to earn its 45 per cent interest.
Talon will also pay Strike $1 million as security for its free carry obligations.
This joint venture will allow Strike to speed-up potential development in the Perth Basin, with drilling set to begin in 2021.
“Walyering is a perfect example of the value that can be generated through offsetting costs from an operationally concentrated portfolio with geological diversification,” Strike CEO and Managing Director Stuart Nicholls said.
Talon last entered a halt in January 2019 in regards to a material transaction and capital raise.
Two days later, the company announced it had entered a binding heads of agreement with EnCounter Oil to purchase 100 per cent of its shares.
Shareholders approved this agreement in mid-March and the acquisition was completed in May. Talon now holds EnCounter’s Skymoos and Rocket prospects.
Shares in Talon last traded for 0.1 cents each on July 17.