Thursday 31 January 2019

HIGHLIGHTS:

- Talon continues to advance its UK North Sea strategy with the acquisition of EnCounter Oil Limited

- EnCounter was formed by former members of EnCore Oil PLC, a company focused on the North Sea and responsible for significant hydrocarbon discoveries at Breagh, Cladhan, Catcher, Varadero and Burgman

- EnCore was acquired by Premier Oil in 2011 for £221 million

- Acquisition underpinned by the addition of 100% interest in two high-quality exploration opportunities

- Licence 2363 - Skymoos Prospect: containing the 107mmbo best estimate prospective resource

- Licence 2392 - Rocket Prospect: containing the 27mmbo best estimate prospective resource

- Highly experienced UK based North Sea oil finders Graham Doré and Paul Young to join Talon team, with Graham Doré to join as Non-Executive Director upon completion of the transaction

- Staged, incentive-based transaction structure provides balanced exposure to upside for both parties

- Acquisition of EnCounter follows the farm-in agreement with Corallian Energy to earn a 10% interest in License P2396, which contains a 45mmboe Curlew-A discovery (gross 2C contingent resource)

- Talon to raise $1.25 million in a heavily-oversubscribed placement to sophisticated investors

Full announcement here.