Talon Energy Ltd. announced that it has executed the formal Farm-In Agreement with Triangle Energy (Global) Ltd. (Triangle), to farm into a 25% participating interest in Western Australian onshore Production Licence L7 and Exploration Permit EP437. In the time since signing the Term Sheet, Talon has completed the required due diligence on the permits, focusing on tenure status, environmental obligations and heritage agreements. The final outstanding Condition Precedent to the Term Sheet, the approval of new Joint Operating Agreements for L7 and EP437, has been waived by both Talon and Triangle until May to allow new Joint Venture (JV) farm-in partner New Zealand Oil & Gas (NZOG) sufficient time to join Talon and Triangle in drafting the new documentation.

As consideration for its 25% interest in L7 and EP437, Talon will pay Triangle ~AUD 1.9 million towards past expenditure on the recently acquired Bookara 3D seismic data, with AUD 1 million paid now, and the balance of ~$0.9 million paid prior to 1 September 2023 (Upfront Costs). As detailed in the ASX announcement on 19 December 2022, in addition to the Upfront Costs, Talon will fund an uplift on the costs of three exploration wells to be drilled in 2024, with forecast expenditure of ~$7.3 million, net to Talon, paid as costs are incurred. With the Farm-In Agreement now complete, Talon will receive the recently acquired Bookara 3D seismic data, along with ancillary geological and geophysical data across the permits.

Talon and Triangle intend to work through this dataset closely together, leveraging the complimentary technical skills brought together through this JV. Together they have identified L7 and EP437 as high-potential permits for hosting large gas fields. The permits are in a strategic location covering 865 km2 in the northern Perth Basin, with prior work by Triangle1 indicating a best-case Prospective Resource (2U) of 617 Bcf (gross, unrisked) for five features in the L7 permit alone.

Talon look forward to announcing updated volumetric analysis to the market in the coming months as a result of this collaborative effort.