THE CONFERENCE CALLER: Being in the right address pretty much sums up Talon Petroleum’s (ASX: TDP) corporate strategy as it consolidates its presence in the UK North Sea.
During the June quarter the Perth-based company completed the acquisition of EnCounter Oil, giving it unfettered access to the highly prospective Skymoos and Rocket prospects.
Then, in late July, Talon announced two new developments regarding further holdings in the area.
First, it was granted (in a joint bid with ONE-Dyas E&P) a licence over Block 14/30b, wherein lies the Thelma, Louise and Buffalo prospects.
Best estimates for these targets are currently 29 million barrels of oil, 17mmbbl and 160 billion cubic feet of gas respectively.
Second, site survey activities over the proposed location of the Curlew-A appraisal well – in which Talon has a 10 per cent interest – was started on Block 29/7b by Corallian Energy.
Currently, Curlew-A’s gross 2C contingent resource for recoverable oil is 36.2mmbbl. According to Talon managing director Matt Worner, this acquisition was the company’s first piece of operational work since it established its UK North Sea strategy in 2018.
Moreover, it is deemed significant given it contains an estimated discovered resource of 39mmbbl and is close to nearby infrastructure.
Despite these developments, it’s the EnCounter acquisition which has arguably generated the most excitement amongst investors during 2019.
As it stands, Skymoos – which is a direct analogue to the Upper Jurassic Buzzard Field (the UK North Sea’s largest producing oil field) and is on trend with several developed oil and gas discoveries – has a best estimate prospective resources of 107mmbbl.
Meanwhile Rocket, with its potential resource of 27mmbbl, is a direct analogue to amplitude-supported oil fields to the north east.