? Firm gas sales commenced on 1 October 2023 where the Walyering gas field has
operated with a high reliability delivering a stabilised 20 TJ/d.
? A total of ~52 TJs of gross commissioning gas was sold prior to commencement of
firm gas sales which has been invoiced.
? Condensate production has averaged ~200 barrels per day during the firm supply
period with first load out occurring on 3 October 2023.
? Ramp up towards name plate capacity is targeted to occur over the coming quarter.
Talon Energy Ltd is pleased to provide the following update in relation to the
Walyering gas field development (L23 / EP447 Joint Venture, Talon 45%, and Strike Energy Limited (Strike) 55%
and Operator) (Joint Venture).
The Operator has advised that a gross total of ~52 TJs of commissioning gas was sold at varying rates during the
startup of the Walyering gas field, where these sales have now been invoiced. On 1 October 2023 at 8:00am, the
Walyering gas field commenced stabilised export of sales gas into the Parmelia Gas Pipeline under its long-term gas
supply agreement (Supply Agreement) with Santos WA Energy Limited (Santos) where a high reliability in the
performance of the facility has been observed measuring at an uptime of more than 97%. The Supply Agreement is
for the supply of 36.5 PJ over a period of 5 years on a firm, take-or-pay basis at 20 TJ per day with arrangements for
supply of additional gas on an ‘as available basis’. At this time, it is important to recognise that both sales of gas into
the Santos contract and condensate sales are denominated in US-dollars
On 5 October 2023, the first offloading of condensate to its point of sale at Port Bonython occurred. Condensate
production has been within forecast rates of ~200 barrels per day since firm gas supply commenced.
The Joint Venture will commence safely ramping up the field towards its nameplate capacity of 33 TJ/d over the
coming quarter now that stabilised rates have been achieved for the firm contracted production. Achieving this rate
is subject to various conditions including market dynamics and facility/upstream performance.
Due to the extended construction time, higher labour rates and additional manpower required against forecasts, the
final cost of the development, including the well completions, facility construction and commissioning costs was $30
million (gross). Strike expects to ‘payback’ the construction cost from gas and condensate sales in approximately two
quarters, highlighting the high returning nature of the Walyering development
For the purposes of the Scheme Implementation Deed and Facility Agreement with Strike announced on 14 August
2023, the Company has received a letter of comfort from Strike to increase Strike’s commitment under the Facility
Agreement to cover the increased Walyering completion costs, if Talon requires additional funds to meet its
commitments.
The Walyering field is independently certified as having proved and probable (2P) Reserves of 56 petajoules
equivalent (PJe) (Talon share 25 PJe) and a further 33 PJe (Talon share 15 PJe) of 2C Contingent Resources in the
western compartment of the field where Talon has recently agreed to the Operator’s request to drill the Walyering-7
well in Q1/24 with the aim of maturing these Resources to Reserves. The estimated quantities of petroleum that may
potentially be recovered by the application of future development projects relate to undiscovered accumulations.
These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal
and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
