Talon Energy Ltd (Talon or the Company) advises that as a result of an internal review of its operations, a decision has been made to undertake an exit of its portfolio of UK North Sea exploration assets in order to focus on its more advanced stage projects.
The exit from the UK comes off the back of a successful maiden Perth Basin drilling campaign at Walyering-5 and Talon’s upcoming high impact drilling at the Gurvantes XXXV Project in Mongolia. Flow testing of the Walyering-5 well, and Mongolian drilling are expected to commence later in Q1 2022.
The Company has commenced the relinquishment process for the licenses currently in its portfolio, however, remains in discussions regarding the possible divestment to a third party of Licence P2727, which contains the White Bear prospect. It is anticipated the process of exiting its UK portfolio will be complete in the coming few months.
Board and personnel changes
The exit from the UK North Sea portfolio will see Mr Graham Dorè and Mr Paul Young finalise their consulting work with Talon upon finalisation of the relinquishment process. Further, Mr Steve Jenkins will step down from his position as Non-executive Director of the Company during the course of February 2022.
Commenting on the Company’s exit from the UK North Sea, Talon’s Executive Director, Matt Worner said: “We commenced our entry into the UK North Sea in 2019 with high hopes for our farmout strategy. Unfortunately, the impact of the COVID-19 pandemic and associated downturn in exploration activity in the region over the period has made execution of this strategy more difficult than anyone might have envisaged.
On behalf of the Talon Board and its shareholders, I would like to sincerely thank Steve, Graham and Paul for their efforts with the Company, which has included meaningful input and contribution to our broader business and portfolio beyond the UK.
Talon is set for an exciting period in the Perth Basin with flow testing at Walyering-5 due to commence shortly, and with the Joint Venture actively reviewing follow on drilling potential in EP447 off the back of recent drilling success at Walyering-5. Likewise, we continue to progress our strategy at the exciting Condor Prospect, the largest undrilled Jurassic wet gas prospect in the Basin.
With initial drilling at the Gurvantes XXXV Project planned to commence late in the current Quarter, which Talon expects will allow it to book Gurvantes XXXV’s Maiden Contingent Resource, 2022 is shaping up to be an exciting period for the Company and investors.”
