23 Nov 2023farm in farm out completion● Neutral
NZ Oil & Gas says it has completed its farm-in to 25% of L7 and EP437, alongside Triangle (50%, operator) and Talon (25%). Drilling is still planned for 2024. This does not change Talon's own 25%.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
9 Oct 2023drilling result▲ GoodMajor
TMK reports a 45 m thick gassy coal seam at the eastern Terra area, 100 km from the pilot wells, and expands the program by four more wells. Pilot wells continue producing gas continuously; Lucky Fox-3 needed pump cleanouts. Talon holds 33%.
13 July 2023drilling progress report● Neutral
TMK reports pumps, drive heads and all surface facilities at the Gurvantes pilot are complete, with final commissioning underway. Production testing is due within about a week. Dewatering is expected to take 2-3 months before initial gas breakthrough.
13 July 2023drilling progress report● Neutral
Talon relays TMK's update that Gurvantes pilot commissioning is underway and facilities are complete. The CEO is confident of gas breakthrough after a projected 2-3 month dewatering. Largely duplicates TMK's release of the same day.
28 June 2023drilling progress report● Neutral
Operator TMK says the Gurvantes pilot program is on schedule and budget, with surface facilities over 80% complete. Pump installation finishes early July and the six-month production test starts around mid-July. Talon funds the first US$3.15m of about US$3.5m.
30 May 2023drilling result▲ GoodMajor
Talon reports all three Gurvantes pilot wells finished safely, on time and on budget, each with at least 60 m of gassy coal. Pumps and facilities go in during June, and first gas is conservatively expected one to two months after pumping starts. Gas rates are still untested.
30 May 2023drilling result▲ Good
Operator TMK completes Lucky Fox-3, with about 68 m of gassy coal, the thickest of the three pilot wells. The drilling program finished safely, on time and on budget. Pumps and surface facilities follow, with early July completion expected before production testing.
19 May 2023drilling spud● Neutral
Lucky Fox-3, the final Gurvantes pilot well, began drilling on 18 May and should take about two weeks. The first two wells each found roughly 60 m of gassy coal. Pump installation is planned for June, with commissioning in July.
16 May 2023drilling result▲ Good
Lucky Fox-2 reached 407 m, intersecting about 62 m of gassy coal, on time and on budget. The rig moves to Lucky Fox-3, the final pilot well; first gas is expected one to two months after pumps start.
5 May 2023drilling spud● Neutral
Operator TMK started drilling Lucky Fox-2, the second of three Gurvantes pilot wells, on 3 May. Drilling and pump installation are expected to finish towards end of June, then a six-month production test. Talon (33%) is funding the first US$3.15M.
27 Apr 2023drilling result● Neutral
Operator TMK's version of the Lucky Fox-1 result: 375 m total depth with about 60 m of net coal, on time and on budget. Remaining two wells take about five weeks. TMK says it is well funded, including a recent A$5.7M raising.
27 Apr 2023drilling result▲ Good
Lucky Fox-1 reached 375 m total depth on 26 April, on time and on budget, intersecting 60 m of gassy coal in the production interval. The rig moves to Lucky Fox-2. Gas flow rates are not yet known; they await the production test.
13 Apr 2023drilling spud▲ Good
Operator TMK spuds Lucky Fox-1 on 12 April 2023, the first of three Gurvantes pilot production wells. The three wells are expected to take about seven weeks, followed by a six-month production test. Talon holds 33% and is funding the first US$3.15M.
3 Apr 2023drilling scheduled▲ Good
Operator TMK says the rig is mobilising for the Gurvantes pilot program, with all permits in place and drilling of three wells due to start mid April, taking about seven weeks. A six-month production test follows. Talon is paying the first US$3.15M of ~US$3.5M.
27 Mar 2023resource reserve update▲ GoodMajor
Talon reports preliminary L7 prospective resources for three gas prospects, each over 50 Bcf best case; Booth is 279 Bcf gross (69.8 Bcf net to Talon's 25%). Two best prospects are targeted for drilling in 2024, possibly early 2024. This updates the earlier 617 Bcf Triangle estimate for L7.
27 Mar 2023resource reserve update▲ GoodMajor
Operator Triangle's interpretation of the Bookara 3D seismic high-grades four 2024 drilling candidates: three gas prospects in L7 (best case 393 Bcf gross, unrisked prospective) and the Becos oil prospect in EP437 (5 MMbbl). This follows Talon's March farm-in for 25%.
1 Mar 2023farm in farm out completion▲ Good
Triangle confirms the binding farmout of 25% of L7 and EP437 to Talon, with conditions satisfied and an initial A$1M seismic payment. Drilling is estimated for early 2024. This is Triangle's side of the Talon farm-in announced in December.
1 Mar 2023farm in farm out completion▲ GoodMajor
Talon signs the formal farm-in for 25% of L7 and EP437 after due diligence. It pays A$1M now and about A$0.9M before 1 September 2023, plus about A$7.3M net toward three 2024 wells. Prior Triangle work shows 617 Bcf best-case prospective resource (gross, unrisked) in L7 alone.
15 Feb 2023drilling scheduled▲ GoodMajor
Operator TMK signs Major Drilling to drill the three Gurvantes pilot wells, starting April, about eight weeks. Pilot cost is about US$3.5M, of which Talon pays the first US$3.15M (stage 2 funding), then 33% of the balance. Pilot wells would then run about six months.
15 Feb 2023drilling scheduled▲ Good
Talon's own release of the Major Drilling contract for three Gurvantes pilot wells, starting within 90 days and taking two months. Repeats ref 1 and adds a planned further 8 exploration wells, 7 outside the Stage 1 area. Follows the 1.2 Tcf 2C resource.
17 Jan 2023farm in farm out agreement● Neutral
Triangle farms out a further 25% of L7 and EP 437 to New Zealand Oil & Gas on similar terms, leaving Triangle with 50%. Talon's 25% is unchanged, and the JV becomes three partners with first L7 well planned Q1 2024.
19 Dec 2022farm in farm out agreement● Neutral
Triangle announces its side of the L7 and EP 437 farm-out to Talon for 25%, with Triangle keeping operatorship and 75%. It puts Talon's total payments at A$9.26M; drilling is expected early 2024.
19 Dec 2022farm in farm out agreement▲ GoodMajor
Talon signs a binding term sheet to farm into 25% of Triangle's L7 and EP 437 northern Perth Basin permits, subject to due diligence. It pays about A$1.9M for seismic costs and funds shares of three 2024 wells, after Walyering first gas.
1 Dec 2022farm in farm out completion▲ GoodMajor
Talon exercises its option and takes a 33% interest in the Gurvantes XXXV coal seam gas project, with about 400 BCF of the 1.2 TCF 2C resource now attributable to it. It also holds a first right of refusal over TMK's remaining 67%.
9 Nov 2022resource reserve update▲ GoodMajor
TMK reports NSAI's maiden Gurvantes contingent resource: 1,214 BCF best estimate (2C), 398 BCF low and 2,361 BCF high. All 1C and 2C is in the upper seam; the lower seam has only 3C. Pilot wells are planned from Q1 2023. Talon is still earning 33%.
9 Nov 2022resource reserve update▲ GoodMajor
Talon announces the NSAI-certified Gurvantes maiden contingent resource of about 1.2 TCF (2C) following the stage 1 program, funded by Talon at about US$1.5M. Talon holds an option on a 33% interest and says it is better placed to decide on continuing.
28 Oct 2022drilling result▲ Good
TMK confirms 56mD permeability in the SL-05R upper seam, the best at Gurvantes so far, and over 80% gas saturation at SL-02 and SL-03. NSAI's maiden resource is due within two weeks. The pilot wells would be near SL-02, mainly funded by Talon.
11 Oct 2022drilling result▲ Good
TMK says the fifth well, SL-05R, finished with 69m of coal. Preliminary testing of the upper seam shows the highest permeability yet. The five-well exploration program is complete; the maiden resource is now targeted by 31 Oct 2022.
28 Sept 2022drilling result▲ Good
TMK reports SL-03R finished at 558m with 175m net gassy coal, up from 140m reported earlier. Stage 1 is complete, so Talon's 90-day election to fund the US$3.15M pilot wells runs from 26 Sept 2022. SL-05 was re-spudded; the resource assessment is under way.
15 Sept 2022drilling result▲ Good
TMK reports SL-03R hit 80m of gassy lower-seam coal, about 140m net coal in total, the thickest yet at Gurvantes. SL-05 is drilling. Talon has not yet elected stage 2; maiden contingent resource is expected early Q4 2022.