3 May 2023admin correction● Neutral
Top 20 holder list for 259,302,867 listed options at 2.5c expiring 30 April 2026, with 129 holders. The top 20 hold 47.72%. Administrative follow-up to the April placement.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
28 Apr 2023capital raising announcement● Neutral
Options prospectus for the free placement options at 2.5c: up to 193,789,650 to placement investors, 2,750,000 to directors and 65,513,217 to the lead manager. It supports the earlier placement and adds no new information.
27 Apr 2023drilling result▲ GoodMajor
Lucky Fox-1 reached 375m total depth, on time and on budget, intersecting about 60m of coal in the upper seam production interval. The first pilot production well is done; the rig moves to Lucky Fox-2. This is a favourable early sign ahead of the production test.
27 Apr 2023drilling result▲ Good
Talon's release repeats that Lucky Fox-1 reached 375m on 26 April, drilled on time and on budget, with 60m of gassy coal in the production interval. The remaining two wells are expected to take about five weeks. Duplicates TMK's own announcement.
20 Apr 2023capital raising announcement▲ GoodMajor
TMK raised about A$5.7m via placement of 393,079,300 shares at 1.45c, a 19.4% discount, with a free 1-for-2 option at 2.5c expiring April 2026. Funds expand the 2023 exploration drilling, planned from early Q3. Tsetsen Zantav agreed a six-month selling restriction. Resolves the earlier funding question.
What it means for a shareholder
393m new shares at A$0.0145 to raise about A$5.7m. That's 12% dilution: every existing holder's slice gets 12% smaller. If you held A$1,000 of shares (68,966 at the issue price), your slice goes from 0.00239% to 0.00211% of the company. To keep it you'd need 9,413 more shares - about A$136 at the issue price.
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13 Apr 2023drilling spud▲ GoodMajor
Lucky Fox-1, the first of three pilot production wells at Gurvantes XXXV, spudded on 12 April 2023, on the April timetable. Talon still funds the first US$3.15m of about US$3.5m. A six-month production test follows all three wells.
3 Apr 2023drilling scheduled▲ Good
Rig is mobilising and all permits are in place for the three-well Pilot Well Program, with drilling expected to start mid April. Drilling takes about seven weeks, then about four weeks of facilities work. First gas is expected one to two months after production starts.
31 Mar 2023annual report● Neutral
Appendix 4G corporate governance checklist for the year ended 31 December 2022, pointing to the governance statement on TMK's website. Administrative, no financial or project information.
31 Mar 2023director officer appointment● Neutral
Non-executive director Stuart Baker, a Telmen founder who joined TMK's board on the February 2022 acquisition, resigned effective 31 March 2023 due to other business interests. He leaves four weeks after fellow director Prof. John Warburton joined.
31 Mar 2023annual report▲ GoodMajor
Annual report for the six-month transitional period to 31 December 2022. It states Class A and C performance shares (600m and 400m) and related rights vested and converted, leaving 4,637.5m ordinary shares on issue. This contradicts earlier 'unvested' status. Mongolia pilot wells and Talon's US$3.15m funding are recapped.
30 Mar 2023other● Neutral
Invitation to an investor webinar on 31 March 2023 where CEO Brendan Stats will give a company update using the updated presentation. Administrative notice with no new results.
28 Mar 2023investor presentation● Neutral
March 2023 investor presentation repeating known facts: 1,214 Bcf 2C contingent resource, Talon farm-in and 2023 milestones. No new results are evident in the readable portion.
20 Mar 2023material agreement▲ GoodMajor
TMK signed a cooperation and electricity offtake agreement with mining operator Mongol Alt (MAK). Subject to approvals, pilot well gas will fuel 1-10MW of power sold to MAK, which will also take the produced water and lend heavy machinery. This gives a path to early sales.
7 Mar 2023director officer appointment▲ Good
Prof. John Warburton joins as a non-executive director. He is a director of Empire Energy, a former Senex director and former Oil Search geoscience chief. TMK says his skills suit the move from exploration to appraisal and development.
6 Mar 2023joint venture update● Neutral
TMK is studying using pilot well gas for up to 10MW of power, with wider studies for about 70MW of local demand, plus CNG and mini-LNG options. The PetroChina MOU lapsed on 6 February 2023, though talks continue on a new agreement or extension.
15 Feb 2023contract award▲ GoodMajor
TMK signed Major Drilling Group to drill three pilot production wells near SL-02, with drilling expected to start in April, later than the earlier 'mid Q1' guidance. Talon covers the first US$3.15m of about US$3.5m; TMK's share is about US$235,000. Wells then run about six months.
15 Feb 2023contract award▲ Good
Talon republished the Major Drilling contract for three pilot wells, with drilling forecast within 90 days. It adds that the joint venture plans a further eight exploration wells, seven outside Nariin Sukhait. Largely repeats TMK's release.
31 Jan 2023security holder rights change● Neutral
1,676,784,000 listed ordinary shares leave voluntary escrow on 14 February 2023, after which no TMK securities remain under voluntary escrow. Released shares could add selling supply (inference).
6 Dec 2022other● Neutral
The board changed the financial year end from 30 June to 31 December to match its Mongolian subsidiary, Telmen. A six-month transitional year ends 31 December 2022; an annual report is due by 31 March 2023 and an AGM by 30 May 2023.
1 Dec 2022farm in farm out completion▲ GoodMajor
Talon formally exercised its option for 33% of Gurvantes, leaving TMK 67% and operator. Talon funds the first US$3.15m of the roughly US$3.5m pilot wells, and pays TMK a US$809,333 bonus triggered by the 1.2 TCF resource. Drilling is forecast mid to late Q1 2023.
1 Dec 2022farm in farm out completion▲ GoodMajor
Talon exercised its option to take a 33% interest in the Gurvantes PSA after completing Stage 1 funding, leaving TMK with 67%. Talon also holds a first right of refusal over TMK's retained stake. It is committed to fund a further US$3.15m of exploration.
25 Nov 2022investor presentation● Neutral
AGM investor presentation repeating known facts: 1.2 TCF (2C) contingent and 5.3 TCF (2U) prospective resource, PetroChina MOU and Talon farm-in. Shows market cap A$75.4m and net cash A$2.5m. No new results.
21 Nov 2022drilling progress report▲ Good
Two 10km 2D seismic lines were acquired to help plan 2023 exploration beyond the 1.2 TCF area. Pilot well design is done and tendering nearly complete. Talon says it expects to elect Stage 2 by 25 December; pilot drilling is expected mid Q1 2023.
16 Nov 2022capital raising announcement● Neutral
Prospectus offering up to 50,000 shares at 2c to raise at most A$1,000. Its stated purpose is to remove trading restrictions on previously issued shares, so it is not a real fundraising.
What it means for a shareholder
50,000 new shares at A$0.020 to raise about A$1,000. That's 0.00174% dilution: every existing holder's slice gets 0.00174% smaller. If you held A$1,000 of shares (50,000 at the issue price), your slice goes from 0.00174% to 0.00174% of the company. To keep it you'd need 1 more shares - about A$0 at the issue price.
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9 Nov 2022resource reserve update▲ GoodMajor
NSAI certified a maiden Gurvantes contingent resource of 398 Bcf (1C), 1,214 Bcf (2C) and 2,361 Bcf (3C). The 1C and 2C are all in the upper seam; the lower seam has only 3C (417 Bcf) because permeability data is lacking.
9 Nov 2022resource reserve update▲ Good
Talon, TMK's farm-in partner, republished NSAI's maiden Gurvantes contingent resource of about 1.2 TCF (2C). It says Talon is now better placed to decide on continuing its investment. Repeats TMK's 9 November announcement; no new TMK information.
4 Nov 2022security holder rights change● Neutral
192.1m ordinary shares, plus 52.4m Class A and 34.9m Class C performance shares, leave voluntary escrow on 14 November 2022. The performance shares remain unvested, so no new shares are issued. Released shares could add selling supply (inference).
28 Oct 2022drilling result▲ Good
Final adsorption tests on SL-02 and SL-03 show gas saturation above 80%, and SL-05R's upper seam permeability is confirmed at 56mD, the project's best. Gas is about 96% methane. NSAI's first contingent resource estimate is expected within two weeks; pilot wells will be near SL-02.
11 Oct 2022drilling result▲ GoodMajor
Final well Snow Leopard-5R finished at 510m with 69m net coal; preliminary testing of the upper seam shows the highest permeability in the project so far. All five wells are done and rigs demobilised. Maiden contingent resource targeted by 31 October; pilot well planning under way.
7 Oct 2022admin correction● Neutral
Revised Mongolia Mining Week presentation re-released with a added cautionary statement on the 5.96 TCF prospective resource (NSAI, effective 31 July 2021). Content otherwise matches the earlier version; no new results.