Talon Energy said that it has decided to launch an exit of its portfolio of exploration assets in the UK North Sea based on an internal review of its operations.

The Australia-based exploration company said that the move will enable it to concentrate on its more advanced stage projects.

Matt Worner — Talon Eergy Executive Director said: “We commenced our entry into the UK North Sea in 2019 with high hopes for our farmout strategy. Unfortunately, the impact of the COVID-19 pandemic and associated downturn in exploration activity in the region over the period has made execution of this strategy more difficult than anyone might have envisaged.”

The Australian oil and gas firm has started the relinquishment process for the licenses currently in its UK exploration portfolio. However, the company remains in talks about the potential divestment to a third party of Licence P2727, which features the White Bear prospect.

Talon Energy expects the process of exiting its UK exploration portfolio to be wrapped up in the coming few months.

The company said that the exit from the UK follows a successful maiden drilling campaign at Walyering-5 in the Perth Basin in Australia. The company is also set to begin high impact drilling at the Gurvantes XXXV Project in Mongolia.

According to Talon Energy, flow testing of the Walyering-5 well and the Mongolian drilling campaign are anticipated to begin later in Q1 2022.

Matt Worner said: “Talon is set for an exciting period in the Perth Basin with flow testing at Walyering-5 due to commence shortly, and with the Joint Venture actively reviewing follow on drilling potential in EP447 off the back of recent drilling success at Walyering-5. Likewise, we continue to progress our strategy at the exciting Condor Prospect, the largest undrilled Jurassic wet gas prospect in the Basin.”

  Australia, COVID-19, Gurvantes XXXV Project, Licence P2727, Matt Worner, Mongolia, North Sea, Oil and gas industry news, Oil and gas news, Perth Basin, Talon Energy, Walyering-5 well