Talon Energy’s partner Strike Energy has kicked off the much-anticipated drilling at their highly prospective Walyering-5 appraisal well in the Perth Basin, which if successful has the potential to significantly re-rate Talon’s Condor Structure.
It’s all systems go for Talon Energy (ASX:TPD) and Strike Energy (ASX:STX) with the start of drilling at the Walyering-5 well in the Perth Basin, which is fast shaping up as Australia’s next major oil and gas hub.
Drilling at Walyering-5 is targeting a high-quality conventional gas reservoir like that encountered by the Walyering-1 discovery well. It is located within EP447, which is held jointly by Talon (45%) and Strike (55%).
Success at the Walyering-5 well could spark a significant re-rating of the company’s analogous Condor Structure, which has the potential to host up to 10 times the gas resources being targeted at Walyering.
EP447 is onshore in the highly prospective Perth Basin, approximately 180km north of Perth, and close to established gas transmission infrastructure.
The Walyering conventional gas field was discovered in 1971 when the Walyering-1 well intersected a gas reservoir which flowed at a rate of 13.5MMCF/D with very low CO2 content of 1%.
The Walyering-5 well is being drilled to a target depth of 3,138m subsea by Ensign Rig 970 and is expected to take approximately 33 days to drill and complete.
The Ensign 970 mobilised to Walyering-5 after successful drilling campaigns elsewhere in the Perth Basin this year, including Strike’s headline grabbing West Erregulla discovery.
“This is an exciting next step in the evolution of Talon Energy as it looks to transition from explorer to potential producer,” Talon managing director David Casey said of yesterday’s milestone.
“Furthermore, we are encouraged that any success at Walyering has the potential to yield significant additional upside at the much larger Condor structure in EP494.”
Last month Casey noted that the high condensate ratio had the potential to further enhance the economics of Walyering.
Notable for Condor is that the reservoirs could be up to 1,500m shallower than Walyering.
As well as Walyering and Condor, Talon also has a right of first refusal over an interest in EP495 which contains the Ocean Hill conventional Jurassic gas discovery (currently held 100% by Strike).
Adding to its potential, TPD has also recently acquired a technology for sequestering greenhouse gases and enhancing the recovery of hydrocarbons from coal seams.
Perth Basin heats up
As well as the Strike and Talon’s projects, Mineral Resources (ASX:MIN) and Norwest Energy (ASX:NWE) earlier this month announced they had successfully suspended their Lockyer Deep-1 gas discovery well for future production testing.
The positive news comes as Europe’s energy crunch has resulted in tightening gas supplies and surging prices.
Australia also faces supply in constraints, which market commentators say are “unprecedented”.
This article was developed in collaboration with Talon Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.