Key Highlights

  • The Halcon prospect has been upgraded to 8.0 Tcf gross unrisked 2U from 2.6 Tcf.
  • The geological chance of success has increased to 24%.
  • The company held $3.96 million in cash at 30 September 2026.

Tetragon Energy (ASX:TET) shares were trading higher during the 10 November 2026 session, up 16.33% at $0.285 at midday AEDT. The S&P/ASX 200 was also higher, up 1.13% at 9,131.90 around 12:32 pm AEDT. Tetragon Energy Ltd (ASX:TET) is an oil and gas explorer with interests in Philippines offshore permits in the Sandakan Basin. Its quarterly activities report for the period ending 30 September 2026 reported an upgrade to the Halcon prospect, and progress on seismic reprocessing and farm-out discussions with potential partners.

About the company

Tetragon Energy holds a 37.5% interest in, and operates, Philippines Permits SC-80 and SC-81, with partners Sunda Energy, Philodrill and PXP Energy. It also holds a 100% interest in SC-82. The permits lie north of Borneo in the Sulu Sea, and contain gas discoveries and wells with gas and oil shows.

Quarterly activities report for the period ending 30 September 2026

The company upgraded the Halcon prospect to 8.0 trillion cubic feet gross unrisked on a 2U basis, from 2.6 trillion cubic feet previously, and increased the geological chance of success to 24%. Tetragon said the upgrade reflects the updated resource estimate and new technical work.

Seismic reprocessing on the SC-80 and SC-81 blocks is progressing on schedule, with fast-track data expected in the first quarter of 2027. The company said this data will be central to farm-out discussions with potential partners, and that Business development activities are accelerating across Southeast Asia.

Capital position

Tetragon reported cash of $3.96 million at 30 September 2026, with a Market Capitalisation of $15.9 million on the same date. The company said the updated resource and new data are intended to underpin discussions with major oil and gas companies about a potential farm-out.

The company has described its farm-out process as one that will use reprocessed seismic data to attract major oil and gas companies. Farm-out deals in offshore permits typically involve a partner funding a share of future exploration costs in exchange for an interest in the permit. Terms, timing and the size of the partner's commitment are usually set only after technical reviews are complete, which means the outcome remains uncertain until agreements are signed.

Sector Context

Gas exploration in the Sulu Sea and surrounding basins is linked to regional energy Demand and to the availability of farm-in partners for large offshore prospects. Companies in the region have sought partners to fund seismic and drilling programs.

In exploration, a prospective resource is an estimate of potential petroleum that has not yet been discovered, and the reported figures are normally shown on a range of confidence levels. The 2U figure used for Halcon is an unrisked best estimate, meaning it does not account for the chance of success or development.

Risks to Consider

  • The Halcon figures are unrisked resource estimates, and a 24% chance of success means failure is more likely than success.
  • Farm-out discussions are not yet concluded, and the company may not secure a partner on acceptable terms.
  • Cash of $3.96 million is modest relative to the cost of seismic reprocessing and any drilling.

What to Watch Ahead

  • The fast-track seismic reprocessing data expected in the first quarter of 2027.
  • Progress on farm-out discussions with major oil and gas companies.
  • Business development activity across Southeast Asia.

Final Word

Tetragon's latest quarterly update raises the resource estimate at Halcon and sets up seismic data as the basis for farm-out talks. The reprocessed data and any partner agreement will determine the project's next stage.

The company's reported figures and resource references are shown in its quarterly report, with the methodology for the Halcon estimate described alongside the reported 2U and chance of success figures.