Past year: ▲ 27%(15.0c – 21.0c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
29 Dec 2014drilling result▲ GoodMajor
The Coolangatta test well reached 10,450 ft and logs show 54 ft of gas condensate reservoir. Talon elected to join completion for about US$47,000 to keep its 6.25% interest. Flow testing is expected in coming weeks; management says the discovery may be material.
23 Dec 2014regulatory community update▲ GoodMajor
Texas regulators amended the AWP Olmos field rules to allow 80-acre spacing, resolving the pending ruling. Talon raises MR Olmos drilling locations 64% to 41. Quintanilla is making 458 boepd after 73 days. Partners are expected to take up options in mid-January.
12 Dec 2014drilling spud● Neutral
The Coolangatta test well (Eagle Lake Gas Unit #1, operated by Aurora) began drilling 10 December and was at 804 ft toward a planned 10,500 ft. Talon expects logging before year-end at nil cost, with an option for 6.25%.
11 Dec 2014production update▲ Good
Quintanilla OL 1H produced 21,766 boe in its first 60 days on restricted chokes; current rate is 464 boepd. Casing pressure has fallen from 2,900 to 2,000 psi, which Talon calls extremely encouraging. Continues the monthly well updates.
2 Dec 2014director officer appointment● Neutral
Anastasia Maynes retired as Company Secretary, following the November board restructure. Andrew Crawford, a chartered accountant and Company Secretary of Maverick Drilling & Exploration, replaces her. Administrative change.
25 Nov 2014farm in farm out agreement▲ GoodMajor
Talon sold down its 25% Coolangatta interest so it pays nothing to drill the first test well through logging, receiving US$37,500. It keeps 6.25% if the well is productive, at about US$45,000 completion cost. Spud planned mid-December 2014.
17 Nov 2014production update▲ Good
Quintanilla OL 1H, the first horizontal Olmos well (Talon 10%), averaged 383 boepd over its first 30 days on a restricted choke, producing 10,748 boe. Current rate is 484 boepd. Casing pressure fell only from 2,900 to 2,350 psi, which management calls encouraging.
4 Nov 2014director officer appointment● NeutralMajor
Board restructured: Forbes, Douglas and Cowley, who joined at the Texon demerger, retired. Peter Love becomes chairman and Peter Evans, a former Morgans stockbroker, joins. CEO Foss stays. Love plans to cut overheads further. Board shrinks to three.
31 Oct 2014quarterly activities report▲ Good
September quarter: Quintanilla tested 986 boepd after quarter end. Mid-2014 3P reserves are 2,735 mboe (2P 595), up 31% on a year earlier. Net production was 1,590 boe. Plans include a second horizontal well in 1H15 and selling down to 50% in the adjoining 3,600 acres.
14 Oct 2014well test result▲ GoodMajor
Quintanilla OL 1H, the first horizontal Olmos well, tested a peak 986 boepd (744 bopd, 1,452 mcfd) over 2 hours; the prior 24-hour rate was about 886 boepd. Talon holds 10%. This proves the MR Olmos concept; second-well planning begins.
13 Oct 2014drilling progress report▲ Good
All 12 frac stages on Quintanilla OL 1H were pumped and the well is flowing back what Talon calls substantial rates of oil, gas and frac fluid. A formal initial production test result is still to come.
8 Oct 2014drilling progress report▲ Good
Fracing of Quintanilla OL 1H began 4 October, with 7 of 12 stages pumped. Completion is due that week and flowback should start at the weekend. Surface facilities are installed, pending a gas pipeline right of way.
1 Oct 2014drilling scheduled● Neutral
Frac of Quintanilla OL 1H is scheduled for early October after a service crew was secured. Talon says a strong initial result would lift the MR Olmos valuation. Repeats known well details; no new result.
26 Sept 2014agm notice▼ Bad
All EGM resolutions on the share plan and share-based pay for directors were withdrawn after proxies ran about 79% against. The chairman called it disappointing. This blocks the shares-for-pay cost saving flagged earlier; further cost cuts are being sought.
15 Sept 2014director officer appointment● Neutral
Peter Love joined the board as a non-executive director on 15 September. He recently became a substantial holder and manages capital raising for Byron Energy. The board will review its structure in coming months, a thread that later resolves.
12 Sept 2014half year report▼ Bad
Interim report to 30 June 2014: loss of A$3.87m (previous year A$6.46m), including A$2.96m impairment on Hoskins #1 and Bonner 1H. Revenue was A$288k. Cash was A$1.7m, down from A$3.9m at December 2013. Admin costs fell 9%.
28 Aug 2014drilling progress report▲ Good
Quintanilla OL 1H, the first horizontal Olmos well, reached 13,555 ft measured depth on 21 August with a 4,286 ft lateral. Rig released; 12-stage fracing is expected late September. No flow result yet. Completes drilling begun 6 August.
25 Aug 2014capital raising announcement● Neutral
Allotment of 102,615,433 new shares under the entitlement offer, lifting issued capital to 205,230,866 shares. Trading starts 26 August. Top 20 holders own 51.72%, led by Kieran Mann at 7.46%. Administrative follow-through on the closed raise.
21 Aug 2014capital raising announcement▲ GoodMajor
The A$1.12m 1-for-1 entitlement offer at A$0.011 closed oversubscribed, with A$1.68m applied for. Entitlements were met in full, extra applications were scaled back, and 13.39m shortfall shares go to underwriter Morgans and sub-underwriters. Completes the raise launched 22 July.
6 Aug 2014drilling spud▲ GoodMajor
Drilling started on Quintanilla OL 1H, the first horizontal well at MR Olmos, targeting 13,600 ft measured depth in about two weeks. Talon operates at 10% WI at a cost of about US$550,000. Fracing follows, and 1C resource potential is 235-327 mboe per well.
31 July 2014capital raising announcement● Neutral
Entitlement offer booklets were posted to eligible shareholders. Talon says the A$1.12m raise plus about A$1.7m of cash would give about A$2.8m, which it says funds its immediate work program.
31 July 2014quarterly activities report● Neutral
June 2014 quarter: Talon's net production averaged 16 bopd. Brice Bonner #1 was averaging 34 bopd gross, and Bonner 1H had returned 109% of load water and averaged 39 bopd. Quintanilla 1H was expected to spud in August, and Angourie revenue was expected from September.
23 July 2014capital raising announcement● Neutral
Advance notice letter to eligible shareholders on the 1-for-1 offer at A$0.011. It shows the share count would roughly double from 102.6m to 205.2m if fully taken up. Repeats known terms.
23 July 2014capital raising announcement● Neutral
Standard letter telling ineligible shareholders (those outside Australia/New Zealand) they cannot take part in the 1-for-1 entitlement offer. Administrative notice with no new substance.
22 July 2014capital raising announcement● NeutralMajor
Talon launched a 1-for-1 fully underwritten entitlement offer at A$0.011 per share to raise up to A$1.12m, a 15.4% discount to the last close. Morgans underwrites it, with the chairman and two directors sub-underwriting. It follows cash falling to A$1.7m.
22 July 2014capital raising announcement● Neutral
Offer booklet for the 1-for-1 entitlement offer at A$0.011 per share to raise up to A$1.12m, opening 31 July and closing 18 August 2014. Text supplied is mainly legal and offer terms and adds nothing material beyond the 22 July announcement.
15 July 2014investor presentation● Neutral
July investor update showing cash down to A$1.7m and market cap A$1.2m at 30 June (share price 1.2 cents). Adds Coolangatta as a seventh project. Brice Bonner #1 is shown at 40 bopd and Bonner 1H at 35 bopd. Mostly repeats known facts.
4 July 2014quarterly activities report● Neutral
Company update: the first horizontal Olmos well, Quintanilla 1H, is permitted, with spud now expected late August-September 2014. Angourie's Scherer #2 tested 800 mcfd, with revenue expected by August. Bonner 1H makes about 35 bopd. The final insurance payment brings total recovery to US$786,898. Directors will take part of their pay in shares.
27 June 2014director officer appointment● Neutral
Director David Mason, on the board since September 2011 and re-elected a month earlier, has retired. He stays as technical adviser through Wandoo. The board will not replace him, citing cost reduction.
30 May 2014investor presentation● Neutral
AGM presentation by the CEO repeating known facts: A$2.1m cash and market cap at 30 April, 2.17 mmboe 3P reserves, six projects with NPV estimate of A$31.2m-53.3m. Says Bonner 1H commerciality is still being evaluated, with 100% load recovery expected late May.
