Triangle plots course for Perth Basin rejuvenation

Triangle Energy Global’s new board has laid out its plan for the road ahead since taking control of the Perth Basin operator, focusing firmly on the $11 million final shipment from the BP Kwinana facility in June. The company has just completed a strategic review that aims to preserve and increase production across its assets.

Triangle is operator of the offshore Cliff Head joint venture, or “CHJV” with Pilot Energy currently producing 535 barrels of oil per day, or “bopd” from the Cliff Head field, the only producing zone in the offshore Perth Basin. The company said it was expecting that figure to increase to 690 bopd following the completion of recent generator repairs. 

The joint venture continues to plan towards the workover of the CH-10 well and to mature the near-field Western Development, SE Nose and Mentelle drilling opportunities it has been studying for some time.

Triangle said the CHJV has 105,000 barrels of oil stored at the BP export facility at Kwinana and expects that to increase to approximately 139,000  by the final delivery from the Arrowsmith processing facilities to Kwinana in late April 2022. The company expects to bank its $11m share of the proceeds of the sale in June.

Along with numerous other Perth Basin and Carnarvon Basin producers, Triangle has not yet said where its liquids production will be sent once BP stops taking oil and converts the Kwinana site to a hydrogen facility.

The company said it had narrowed its options down to two acceptable outcomes that involve trucking produced oil from the Arrowsmith facilities and exporting it from Geraldton, WA, around 100 kilometres to the north.

Triangle Energy Managing Director, Mr Conrad Todd said: “I am pleased to report to shareholders that since stepping into the role the management team has re-evaluated the projects and significant opportunities the Company has. The first priority has been to cement the cashflow from the next oil lift and determine which plans will be best for future deliveries.”

“Given the positive oil price environment maximizing production is a clear focus along with generating further value in the Company’s assets in the medium term.”

“Our clear focus is to maintain and increase production from Cliff Head. Our next focus is on an alternative export route for our oil. But the clear bright star of the future for the company is the L7 and EP437 blocks and the shallow Jurassic oil prospects and the deeper Waitsia lookalike Permian plays that are contained in them.”

Triangle announced in 2021 it was acquiring the remaining 50 per cent of the L7 and EP 437 permits, the former containing the historic Mt Horner oilfield, from partner Key Petroleum.

Todd clearly sees great potential in chasing shallow oil opportunities in the productive L7 block however is also looking to replicate the company making Permian-aged successes of Waitsia, West Eregulla and Lockyer Deep gas discoveries a little further south in the Perth Basin.

“The 3D seismic we’re planning to acquire will sharpen up those prospects. It’s much like the western flank of the Cooper Basin – it wasn’t until 3D seismic was acquired that those leads were tightened up and de-risked into drillable prospects,” he said.

The company also said it had recently struck a deal with partner Norwest Energy to take an additional 15 per cent interest and operatorship in permit TP 15 containing the currently non-commercial Xanadu discovery and lies between Cliff Head and the coast.

Subject to approval, Triangle would go to 60 per cent and with additional seismic testing would evaluate the other potential within the inshore license, focusing on the West Xanadu, the South Xanadu and the Texel leads in the permit.

As yet the new board hasn’t taken the razor to its asset base as is often the case. Instead the message coming from Triangle is to preserve and increase Cliff Head cash flow, bed down a consistent oil export strategy and then chase onshore Perth Basin company makers. Watch this space.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au