good news re Terrace, that adds ~$1.3mill to the TPD balance sheet assuming they take both options, Aschere also have the 16% options for another $700k would be nice in some ways if Aschere don't take their option up which would mean TPD have 66% remaining.
TPD as operator control the drilling schedule which is important as they therefore control the expenditure, we would not want a liability to stump up cash in the current climate.
Other positives for Talon, are no debt and at current POO income from Q1O covers more than 50% of quarterly costs, which mean balance sheet draw down is manageable in the meantime.
The TRCC decision on drill spacing in the Olmos is a key milestone as that essentially increases the reserve's footprint at no cost to Talon eg able to go from 15 wells to 30 wells, which ultimately can make TPD into a bigger company. All obviously POO dependent.
TPD Price at posting:
1.3¢ Sentiment: Buy Disclosure: Held
