SYDNEY: Talon Petroleum Limited has submitted multiple applications for new exploration licences in its core focus area of the UK Central North Sea as part of the UK Oil and Gas Authority’s (OGA) 32nd Seaward Licensing Round.
Participation in these regular, competitive OGA licensing rounds is a key part of Talon’s UK North Sea strategy, which is to identify and target entry into early stage prospect opportunities via bid rounds; farm-out for carry retaining non-operated equity positions up to 20%; and target low-risk exploration opportunities with the potential to tie-back to nearby infrastructure.
From a technical perspective, the new licence applications follow the Company’s consistent geological thematic of stratigraphic trap plays in areas of the Central North Sea, where the Talon technical team has had considerable past success unlocking some of the region’s most significant hydrocarbon discoveries.
If the Company is successful in its applications, any new licences awarded will provide Talon’s portfolio with a significant prospective resource addition. These will add to the strong pipeline of prospects that the Company will look to seek to farmout for carry, with the aim of participating in regular high-impact drilling events.
Importantly, the submitted initial work programs are low-cost over an initial period of 3 years. The OGA expects to announce the results of the licensing round in Q2 2020.