Few fun facts on the Australian oil & gas industry:
- Australia imports almost 82% of refinery feedstock
- Almost two-third of the Australian crude and condensate production comes from the Carnarvon basin in Western Australia
- Australia dethroned Qatar to become the world’s largest LNG exporter
Let’s know Triangle Energy - An Experienced and Successful Oil Producer & Explorer
Based in Perth, Western Australia, Triangle Energy (Global) Ltd (ASX:TEG) is an oil producer & explorer, focusing on strengthening its position in the highly prospective and underexplored Perth Basin.
- A 78.75% interest in, and is operator of, the Cliff Head Oil Field, which covers the Arrowsmith Stabilisation Plant, the only offshore and operational onshore crude facilities in the basin;
- Owns a 45% stake in the TP/15 joint venture (Xanadu) with Norwest Energy NL (25%) and 3C Group (30%);
- Completed a farmout deal for a 50% stake in the L7 Mt Horner asset in the North Perth basin in 2019, where the company has already identified prospective resources;
- The company also owns a 33.34% stake in ASX-listed State Gas Limited.
Why Perth Basin for Triangle Energy?
Perth Basin still remains vastly unexplored, and with the success of the Cliff Head operations producing in excess of 1,000 bopd, TEG sees the basin as a big opportunity to develop as a bigger player in the domestic oil industry with priority to assets closer to its current offshore facilities.
The crude oil, condensate and LPG resources in the Perth Basin remains one of the least explored among the most prominent basins of Australia.
Australia Crude Oil, Condensate and LPG Resources (PJ) (Source: Resources & Energy Quarterly)
Share & CY2019 Performance
TEG closed at $0.052 a share on 29 January 2020 with a market capitalisation of $19.84 million. The last three-month return of the stock stood at 10%.
The calendar year 2019 attributable gross cashflow was estimated at $21.5 million, based on the results from the first half of 2019 and forecast value of the second half.
As of 30 September 2019, Triangle also held a cash of $5.48 million (including $1.51 million in escrow) and a debt of only $0.871 million. With the strong fundamental as reported and estimated by the company, the market capitalisation of TEG at $21.5 million expects to be corrected to a higher value in future, given the investment has a value $29.74 million (33.34% stake in Stake Gas).
TEG Flagship Perth Basin Project - Cliff Head Oil Field
On 17 July 2018, Triangle Energy (Operations) Pty Ltd, an operating associate of TEG, became the operator of the Cliff Head Joint Venture. The Cliff Head facilities are important for any development in the surrounding area, as they are the only facilities in the basin.
Crude oil from an unmanned offshore platform is transported to the dedicated stabilisation processing plant at Arrowsmith via a 14-kilometre-long pipeline. The Arrowsmith stabilisation processing plant has a capacity of 15,000 bopd, almost 15 times the current capacity of the field, and, therefore, processes crude oil from third party oil rigs, bringing extra revenue stream through it and gaining the understanding of the multiple regions in the Perth Basin.
Source: Triangle Energy
The unmanned platform has 5 operating production wells, with CH-13 resuming production on 13 December 2019, increasing the production rate above 1,000 bopd on 18 December 2019.
The company operated only 4 producing wells at Cliff Head until 13 December 2019 at an average of 779 bopd, and with CH-13 coming into production, the steady-state production rates increased to 970 bopd by 16 December 2019 and finally reaching a steady-state production rate of 1,028 bopd on 18 December 2019. The estimated production for the December quarter assumes that the steady-state production rate of 1,028 continued for the rest of the December.
The estimated December quarter production comes out as 74,315 barrels, a 3.85% increase with a daily average of 826 bopd against 778 bopd in the previous quarter.
Cliff Head Renewal Project – Targeted Towards New Opportunities
TEG has been exploring and developing field prospects within the Cliff Head Oil Field with the objective to expand production and the economic life of the offshore Cliff Head Alpha platform, and onshore Arrowsmith Stabilisation Plant. Current reserves at Cliff Head stands at 1.71MMstb (million stock tank barrels).
Source: Triangle Energy
Consequently, several prospects have been shortlisted to undertake the Final Investment Decisions (FID) as a result of the drilling and exploration programs. Such opportunities would provide new production streams and help in the expansion of long Cliff Head operations.
TP/15 Xanadu Joint Venture - Encouraging Drilling Results
Triangle owns a 45% interest in the TP/15 Xanadu Joint Venture, also located in the Perth Basin. The permit covers an area of 645km2 and is located close to Port Denison. One of the partners, Norwest Energy NL, operates the Joint Venture.
During 2019, a seismic programme was conducted at the project, demonstrating encouraging results strengthening the dream of the JV partners to define the structure of the Xanadu project. Directional drilling techniques were used in Xanadu-1, from an onshore location to an offshore target at a depth of 2,035 metres.
The results from the seismic study might help in evaluating the economics of the project. The drilling program for Xanadu-2 prospect is scheduled for mid-2020. TEG intends to work in synergy with its partners to agree on a budget and future program to identify future prospects in future.
State Gas Limited – Another Feather in TEG Cap
Triangle owns a 33.34% stake in State Gas Limited, which was made public in 2017, raising $5.25 million. State Gas owns (80%) and operates in the Reid’s Dome property, located in the Bowen Basin in Queensland.
Aldinga East 1A is planned to be drilled to a depth of 1,200 metres to investigate the gas prospects in the northern area of the property. State Gas reported its maiden production from Reid’s Dome well and produces almost 120,000 SCF (standard cubic feet) a day in Reid Dome at a depth of 702 metres.
The flagship Cliff Head operations in the underexplored Perth Basin are complemented by the operating State Gas’ Reid’s Dome property in Queensland, along with advance future prospects such as the Xanadu venture and the Mt Horner, ensuring long and varied revenue streams for Triangle Energy and also, further exploration and development of Perth Basin.
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