Talon Acquires Oz Perth Gas Asset
Australia's Talon Petroleum has agreed preliminary terms to acquire rights to the Muchea structure in the onshore Perth basin from Macallum Group, it said on January 20.
Talon made its entry into the Perth basin last year, securing a 45% interest in the Walyering wet gas discovery in permit EP447 from its Sydney-listed operator Strike Energy. The company has signed a non-binding terms sheet with Macallum to acquire 100% interests in permits EP494 and SPA-0081 located further south, which contain Muchea.
The company said it was looking for assets with conventional, gassy reservoirs located near gas transport infrastructure with liquid hydrocarbon potential. Further geophysical surveying is needed to determine if Muchea is worth drilling, Talon said, but initial mapping shows a high relief structure up to 80 km2 in size.
Muchea's Jurassic target reservoirs are understood to be situated at moderate depths of below 2,200 m, or 800 m shallower than those at Walyering, Talon said. A range of rigs could therefore be used for drilling at a moderate cost, it said. Talon may identify additional targets as it continues with its studies.
"This is a very exciting Perth basin portfolio addition, again targeting conventional sandstone reservoirs," Talon's managing director David Casey said in a statement. "The Muchea lead identified by Talon has the potential to be matured into the region's largest undrilled, Jurassic, wet gas prospect."
Talon will pay $90,000 to Macallum when the term sheet is executed, and issue 54mn of its shares when formal agreements are closed. The company expects to spend $100,000 on an airborne audio electromagnetics using passive transient pulses survey before the acquisition is finalised.
In addition to Walyering, Talon's deal with Strike also gave it a right of first refusal to an interest in nearby EP495 containing the Ocean Hill gas discovery. Strike's plans for its other Perth Basin gas production include marketing it to local industry and building a urea plant as an offtaker.