TPD - Talon Energy

[System]

Talon Petroleum Limited (TPD) is the demerged entity of Texon Petroleum. It is an exploration and appraisal focused oil and gas company that holds Texon's non-Eagle Ford Shale assets, which include a mix of production, development, appraisal and exploration assets.

http://www.talonpetroleum.com.au

 

[Agentm]

commence drilling on roundhouse in June 2013

olmos is up for sale or farm in

rodessa is very interesting also

with obrien and talon drilling in roundhouse in the coming weeks, will be expecting some great results from them, obrien is particularly keen

 

[gerkin02]

Yes,very interesting stock.

Obrien seem to be a substancial outfit with a lot of in house resources.

Cliff Foss is using capital sensibly and has now set up the company quite well in a success case.

Such low shares on issue is both rare and gives large upside.

All the best.

 

[Sdajii]

TPD's market cap is around $6 million, which is less than what they have in the bank, and they're debt free.

TPD's management has a history of being great at getting oil out of the ground (admittedly, a poor record of selling acreage, but that doesn't seem important now - they're now playing a game of proving up land and producing oil, not selling acres)

TPD holds over 15,000 net working acres in two great areas of Texas. This is a brilliant asset on top of their cash which itself is over the market cap!

TPD already has production of 27 BOPD from existing wells on their land. This isn't much, but for a company so small in terms of overheads and market cap, it is considerable in terms of funding general company expenses.

Currently, TPD is looking at 79 potential undeveloped well locations, with the possibility of there being more. Estimated NPV is around $3-9million per well.

To me, the above is compelling, particularly the first and last points - market cap of around $6 million, 79 well locations of average estimated NPV around $5 million.

The obvious downside is that TPD only has enough money in the bank to drill one well, and if it happens to be a duster they'll need to search for some funding in a situation of putting their hand out to to fund something unproven (which will be possible but obviously not ideal). On the other hand, the team is experienced and looking at a low risk strategy rather than highly prospective exploration so with any luck this won't be necessary. Of course, even if every well is a success (which won't be the case), they're going to need to raise capital which will probably cause dilution. Even so, it would take a heap of dilution to tip the balance.

The upside is certainly considerable if everything goes to plan!

TPD is a new company, under the radar, and many (most?) holders have their shares simply because they were handed them as an almost afterthought in the TXN demerger. If the first well they drill goes well it should certainly bring some attention.

 

[Agentm]

Yes,very interesting stock.

Obrien seem to be a substancial outfit with a lot of in house resources.

Cliff Foss is using capital sensibly and has now set up the company quite well in a success case.

Such low shares on issue is both rare and gives large upside.

All the best.

obrien has commenced the drilling on that first horizontal, and the well is smack in the middle of producing verticals.

proof of concept well aside, the rock will deliver oil.

market says the well will fail and has marked tpd below cash value considerably.

will be adding as much as i can in the coming month.

 

[gerkin02]

Yes,I like the stock and am sure the roundhouse well will flow oil.Will it be at commercial rates?

We will find out in due course.

I see the olmos as a low risk play,which alone should re-rate the stock significantly higher than the current share price.

I put together a handy position over a 2 week period at the end of May.

My gut tells me we could get an "Adelphi Energy" type performance out of this one(without the take over hopefully).

I am encouraged that Cliff put together an eaglebine play after Petrohawk and successfully sold it.

There sure is a lot of experience on the Talon board.

Best of luck to all.

 

[Agentm]

i think that the board is ok

with angus there, he will support the interest of the majority against the snouts in the trough

i look at who is on the ground there, cliff and co... and the and co aspect is the secret to talons success.

i expect delivery off woller, infact i expect commercial flow, anything that is replicated from the vertical into the horizontal will imho deliver commercial flow rates on the oil

olmos is slowly gaining traction, proof of concept is closer

i will add any opportunity i have, but with the markets as they are, pickign the bottom is tough

 

[Sdajii]

My gut isn't really telling me anything (and I wouldn't be inclined to listen to it anyway!) but my head sees the possibility of this turning into another ADI situation, and yes, I also hope there is no takeover. If Talon proves its resources up and things look good we're going to be a prime target for a takeover. With ADI I (like many others) was able to put my payout into EKA and AUT which performed handsomely for me, but there is likely no equivalent deal this time. Still, if we get good results, share price jumps to 20c and we get bought out at 30c it won't be the biggest tragedy I've had to endure.

 

[Agentm]

talon: roundhouse close! still trading under cash value!!

i was told the roundhouse well was close, the lateral was being drilled

no news on olmos as yet gerkin, would be nice to see that happen in july

i was adding over the past weeks and managed to buy into the institutional selling thats been going for a long time since the merger. its a nice buy for me as the share is trading under cash value and there is no emotion with the trades atm, just put in your bids and they get filled, the instos are forced to sell tpd as they are not allowed to carry the stock on their books.

reminds me of the buying i did on adi at .04 pre their takeover at .42.. i consider cash value, or under cash value on an oiler as about as low as it may go. fingers crossed talon may be seen as valuable one day soon and trade at cash value or above

 

[gerkin02]

Thanks for the update agentm.

The more I go over this stock the greater I am warming to it.

Talon are choosing an operation strategy very similar to Obriens own.

Ready to pounce again on news of success.

Best of luck to all.

 

[Sdajii]

Trading at under cash value isn't quite as strange as it might seem. They'll burn all their money on the first well or two, so it's critical we get producers right from the start.

Still, they're good odds. As said, the price is pushed down by obligatory selling. They're unproven and under the radar in a spooked and strained market. Great opportunity!

 

[Agentm]

500,000 order at .053

suddenly it sparks up, close to the bonner well being completed

proof of concept well it may be, but still after examining all regional verticals N,S,E and W of the well, all are flowing from the formation.

hope the buying i did a few weeks back pays off

 

[gerkin02]

Has anyone heard any news on repairs to the bonner 1H well?

With the casing parting so shallow in the well,I would think remediation would have a high chance of success.

 

[Agentm]

well is producing fluids, will produce oil in the coming weeks

it is locates in the middle of a bunch of verticals that are producing from the same formation

imho this well could surprise

 

[Sdajii]

Back in November they told us that fracking was completed on November 6 and after a short flowback period about 12,600 barrels of fluid had been recovered, leaving a little over 100,000 barrels.

In mid November a jet pump was installed, which was recovering about 1,500 barrels of fluid per day. They said at least half of that would probably need to be recovered before the well started producing oil. That should have taken until about late December. At 1,500 barrels per day all of the frac fluid should have been recovered. Presumably there would be a slowdown over time, but they should well and truly have more than half recovered by now.

I'm crossing my fingers that all is well and there has just been a slow increase in oil in the recovered liquids, with no sudden change requiring an announcement. Hopefully they want to get a stable production rate which they can report, or they're waiting for maximum production, which I assume would be reasonably soon after the majority of frac fluid was recovered. Either way we presumably must be very close to getting some news.

 

[System]

On June 7th, 2021, Talon Petroleum Limited changed its name to Talon Energy Limited.

 

[gerkin02]

Talon
Energy has some very interesting projects currently. With the Perth basin, Mongolia and possibly UK North Sea having activity in the next 5 months, it is worthy of consideration. All the best to current and potential holders.

 

[noirua]

Talon Energy (ASX:TPD) eyes $12m after acquiring interest in Gurvantes, Mongolia

Talon Energy (ASX:TPD) has tapped private investors for $12 million to support its acquisition of a 33 per cent interest in TMK Energy's (TMK) Gurvantes XXXV project in Mongolia

themarketherald.com.au

TPD has exercised its option to acquire a 33 per cent interest in the TMK Energy’s (TMK) Gurvantes XXXV project in Mongolia, committing to funding the first US$3.15 million (A$4.6 million) of expenditure for a stage two pilot well program with TMK.

Under the agreement, TPD will also need to pay US$809,333 to TMK based on the recent contingent resource of 1.2 trillion cubic feet at the project.

Additionally, TPD will fund 33 per cent of the ongoing expenditure at Gurvantes.

Live price chart: https://uk.advfn.com/p.php?pid=staticchart&s=ASX^TPD&p=5&t=1

 

[System]

On December 28th, 2023, Talon Energy Ltd (TPD) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between TPD and its shareholders in connection with the acquisition of all the issued capital in TPD by Strike Energy Limited (STX).
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