TMK Energy de-risks, pivots from WA to focus on Mongolian coal seam gas

TMK Energy has sold its 20% indirect interest in the Napoleon exploration well in the Talisman Deeps project offshore in WA’s Northwest.

TMK Energy (ASX: TMK) has executed a sale agreement to divest the 20% interest it holds in the Talisman Deeps project offshore in Western Australia’s Barrow-Dampier Sub-basin.

TMK says it has agreed on a deferred $1M consideration for the sale that will be payable upon the onset of commercial oil or gas production from the project.

The sale of the non-operated 20% interest in the Talisman Deeps Project is timely and frees up resources as we continue to rapidly advance our Gurvantes XXXV project in Mongolia. We are all aware of the significant challenges of exploring for hydrocarbons and developing projects offshore Western Australia and it is certainly no longer the Company’s focus. TMK Energy’s CEO Dougal Ferguson

The Talisman Deeps involves the rights attaching to the offshore petroleum licence WA-8-L below a depth of 2700 metres. The assignees of those rights are Kato NWS Pty Ltd and Kato Amulet Pty Ltd which hold the rights to the licence at or above the 2700m depth.

TMK says the sale removes any potential exposure or risk associated with future work programs and ensures it has no further financial obligations relating to Talisman. It also enables the company to devote its attention to its Mongolian Gurvantes XXXV Coal Seam Gas (CSG) project.

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