Triangle Energy Acquires Additional Perth Basin Interests
ASX-listed Triangle Energy (Global) Ltd. has signed an agreement with subsidiaries of Key Petroleum Ltd. to acquire the remaining 50% operated interest in production license L7 (R1) and an 86.94% operated interest in exploration permit EP 437 in the Perth basin in Western Australia.
Under the terms of the deal, Triangle Energy will acquire the interests for a total cash consideration of A$600,000 plus the assumption of all associated liabilities and work program commitments, as well as a 5% gross overriding royalty interest (GORR) on production from the licenses.
Upon completion of the transaction, a wholly-owned subsidiary of Triangle Energy will hold a 100% operated interest in L7 (R1) and an 86.94% operated interest in EP 437, with Pilot Energy Ltd. holding the remaining 13.06%.
L7 (R1) lies over the Allanooka terrace in the North Perth basin, and is adjacent to the prolific Dandaragan trough, south of Geraldton. The permit contains the Mt. Horner oil field, which was in production from 1984 to 2011, but is currently inactive. The license also contains the Delilah prospect, which is on trend with prospectivity at both the Jurassic and Permo-Triassic levels. Work plans include the acquisition of 3D seismic data, which will tie into the existing Irwin 3D survey to the south and extend into EP 437 to the west. The survey aims to provide a near-complete coverage of the Bookara Shelf hydrocarbon fairway to develop several drilling opportunities identified in the area.
EP 437 covers an onshore area of 716 sq. km and is located south of Geraldton. The license primarily targets the Kingia and High Cliff formations and contains the Wye Knot, Becos, Parce, Becos South, Updip Wattle Grove, and Ganay prospects. The Wye Knot prospect is located down-dip from the Wye-1 gas discovery, drilled in 1996 at the crest of a 4-way-dip-closed structure. Pursuant to deal closing, Triangle Energy will assume all of Key Petroleum’s ongoing work commitments, including the acquisition of a 20 sq. km 3D seismic and the drilling of a well prior to the end of Year 3 expiring on May 27th, 2022, with a second discretionary well due by the end of the permit term on May 22nd, 2023.
“The consolidation of EP 437 and L7 provides Triangle Energy an extensive portfolio of Jurassic and Triassic oil opportunities along with the upside Permian play. Triangle Energy now becomes a material player in the onshore North Perth Basin as well as the dominant acreage holder offshore,” Triangle Energy said in a statement.
The deal is subject to customary closing conditions, including the receipt of regulatory and shareholder approvals, and the execution of a deed of covenant in respect of EP 437.