Printer Friendly

Talon Petroleum Limited (ASX:TPD) June 2013 Quarterly Report and Appendix 5B.

Brisbane, Australia, July 31, 2013 - (ABN Newswire) - Talon Petroleum Limited (ASX:TPD) announce the June 2013 Quarterly Report and Appendix 5B. Production for the quarter and year to date was:

Gross average daily production for the June quarter was 19 bopd and 0 mcfgpd (Talon's share(1): 14 bopd (14 boepd) and 0 mcfgpd) from its two (2) producing wells, the Wheeler #1 and Hoskins #2. Gross estimated average July production from the one producing Olmos (Wheeler #1) well was 13.8 bopd (13.8 boepd) and 0 mcfpd (Talon's share(1) : 9.9 bopd (9.9 boepd) and 0 mcfpd).

(1) Talon's beneficial NRI share (after Royalties).

(2) Gas is converted to boe on the basis that 6 mcf of gas are equivalent to 1 boe.

(3) Quarter 1 2013 corrected for production volume reported to regulatory agencies versus prior field reported production.

Review of activities

As detailed in its latest financial report released on 28 March 2013, the Company has a portfolio of exploration and development assets, including production from the Olmos and Wilcox reservoirs in South Texas and a growing exploration portfolio in East Texas including projects at Roundhouse, Redfish, Catfish Creek and East Banks.

(a) Roundhouse Prospect, Navarro County, East Texas

During the quarter the Company has joined O'Brien Energy Company originally for 25% WI in the proof of concept well (Bonner 1H) and the surrounding approximately 600 acres at a combined cost of US$1.65 million to the Company. USA-based O'Brien Energy Company ("O'Benco") is the operator with a WI of 75%. The Company has also acquired approximately 3,511 additional acres in close proximity to the well at a cost of US$742,000. Pursuant to the Project Generation Agreement with Wandoo Energy LLC ("Wandoo"), the Company now has approximately a 24% WI in the Bonner 1H well and the surrounding 600 acres. The Company's total Roundhouse lease position is currently approximately 7,180 net acres.

The Bonner 1H well was drilled to the total measured depth of 15,260 feet (9,472 feet TVD) on 3 July 2013.

Since the end of the quarter, completion commenced with facture stimulation on 21 July 2013. Four (4) out of the 11 planned stages were completed when the operator O'Benco advised that on 25 July 2013 the 7 inch and 9.625 inch casings parted in the well. The fracture stimulation has been placed on hold and the operator is currently preparing to mobilize a rig in an effort to re-establish the mechanical integrity of the failed casings and if successful to continue the completion operations.

(b) Mosman Rockingham Olmos, McMullen County, South Texas

Production was discontinued on the Hoskins #2 (Wilcox) well on 15 June 2013 when the down hole pump malfunctioned. An economic assessment of returning the well to production revealed the expense could not be justified. Rather, the surface and down hole production equipment will be transferred to the Hoskins Unit #1 and the well returned to production as an Olmos completion. As a result, since the end of the quarter work commenced the week of 15 July 2013 to restore the Hoskins #1 to production.


(a) The Company's first AGM was held on 30 May 2013 and all resolutions were passed.

(b) During the quarter the Board completed the process of renewal whereby Dr John Armstrong has retired as a Director and Chairman as from the end of the Company's AGM on 30 May 2013 and the Board has appointed Mr Jeffrey Forbes (who joined the Board on 4 April 2013) as Chairman and Mr Bruce Cowley as a Non-Executive Director following Dr Armstrong's retirement coming into effect. The Company also appointed a new Company Secretary, Ms Anastasia Maynes, in April and a new Financial Controller, Mr Ron McCaslin, in May.

(c) In May the Company issued 4,000,000 ordinary shares to Wandoo as part consideration for the acquisition by Texoz E&P II, Inc. ("Texoz"), a subsidiary of the Company's previous parent entity Texon Petroleum Ltd, of the WI from Wandoo in its Eagle Ford Shale assets in Texas USA under an agreement between Texoz and Wandoo as part of the Demerger Scheme and Acquisition Scheme approved by shareholders 25 February 2013 and implemented 7 and 8 March 2013, respectively. Total issued shares are 102,135,433.

(d) In June the Company issued 3,400,000 unlisted options to Mr Clifford Foss and 1,200,000 unlisted options to Wandoo. The options are exercisable at $0.0675 each under certain conditions and were issued in accordance with shareholder approval granted at the 30 May 2013 AGM.

To view the full report, please visit:

About Talon Petroleum Limited:

Talon Petroleum (ASX:TPD) is a Texas and Gulf Coast focussed exploration and appraisal company. The company strategy is focussed on low risk, liquids rich prospects in mature, well serviced areas. Talon expects to add value through utilising modern drilling and fracture stimulation technologies.

Copyright 2013 ABN Newswire

Provided by an company
COPYRIGHT 2013 Al Bawaba (Middle East) Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2013 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:ABN Newswire
Geographic Code:1U7TX
Date:Jul 31, 2013
Previous Article:Sovereign Gold Company Limited (ASX:SOC) Quarterly Activities Report.
Next Article:ADX Energy Limited (ASX:ADX) Quarterly Activities Report - June 2013.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters