Why Tetragon Energy (ASX:TET) is reworking seismic data to test a larger Philippine gas prospect

Sonal Goyal

03 November 2026 09:43 PM AEDT

Why Tetragon Energy (ASX:TET) is reworking seismic data to test a larger Philippine gas prospect

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Key Highlights

Best-estimate unrisked gross resource at Halcon upgraded to 8.0 TCF of gas, up from 2.6 TCF, with geological chance of success rising to 24%
Cash stood at A$3.956 million at 30 September 2026, providing an estimated 4.67 quarters of funding at the current burn rate
Fast-track reprocessed seismic data for SC-80/81 is expected in Q1 2027 and final data in Q3 2027
A loyalty option offer was announced of one option per four shares, exercisable at 40 cents and expiring November 2028

Tetragon Energy (ASX:TET) is trying to turn a large but unproven gas prospect into something that can eventually be drilled, and the work it is paying for now is the reprocessing of existing seismic data. In its Quarterly Report for the three months to 30 September 2026, the company said its best-estimate unrisked gross resource at the Halcon prospect had risen to 8.0 trillion cubic feet (TCF) of gas, from 2.6 TCF.

A newly listed explorer

Tetragon is an oil and gas explorer based in Fremantle, Western Australia. It listed on the ASX on 9 July 2026 after an oversubscribed initial public offering that raised A$4 million at 20 cents a share, and ASX classifies it in the energy sector. Its securities are ordinary shares, and it has no producing assets.

What changed at Halcon

Halcon sits within service contracts SC-80 and SC-81 in the Sandakan Basin, offshore in the Sulu Sea north of Borneo. Tetragon is operator with a 37.5% interest, alongside Sunda Energy, Philodrill and PXP Energy.

The company announced the larger estimate on 3 September 2026 and lifted the geological chance of success from 18% to 24%. Unrisked means the figure describes what the prospect could hold if gas is present, so a 24% chance still implies a roughly three-in-four likelihood of a dry result.

The onshore leg

The second asset is SC-82 in the Cagayan Basin on Luzon, about 250 kilometres north of Manila, which Tetragon owns and operates outright. It contains the Nassiping-2 gas discovery, which has not been produced.

The company reports best-estimate 2C gross resources of 470 billion cubic feet of gas and 7 million barrels of condensate offshore, and 13 billion cubic feet of gas onshore at SC-82. Work there is early: sourcing and copying seismic tapes, reprocessing existing data and re-evaluating well results.

Spending and funding

Cash stood at A$3.956 million on 30 September 2026, against A$716,000 at the end of June, with the listing supplying a financing inflow of A$3.728 million after costs. Operating cash outflow for the quarter was A$687,000, including staff costs of A$254,000 and administration of A$436,000.

Exploration and evaluation payments were only A$160,000, split A$111,000 for SC-80/81 and A$49,000 for SC-82. Tetragon estimates its funding covers 4.67 quarters at the current burn rate.

That low spend reflects the absence of drilling. An offshore well would cost far more than the cash on hand, which is why the company's preliminary farm-out discussions matter. It said it is not currently party to any farm-in or farm-out agreement.

Risks and dates ahead

The central risk is geological: reprocessed seismic may not support the upgraded estimate, and a prospect with a 24% chance of success will Fail more often than not. Funding is a second risk, since any drilling would require a partner or new capital, and further Equity would dilute existing holders.

On 13 October 2026 the company announced a loyalty option offer of one option for every four shares held at the Record Date of 13 November 2026. The Options are exercisable at 40 cents and expire on 12 November 2028, and each exercised option carries a piggyback option at 80 cents expiring on 12 November 2030. Tetragon does not intend to seek Quotation of the loyalty options.

Dr Sam Algar became chief executive on 1 October 2026, moving up from chief operating officer, while Conrad Todd stepped down as managing director and remains a non-executive director. The Annual General Meeting is scheduled for 20 November 2026.

On the technical timetable, fast-track reprocessed data for SC-80/81 is expected in the first quarter of 2027 and final data in the third quarter of 2027. The company has flagged updates to resource estimates and chance-of-success in the coming months.

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