Triangle Energy Reports Excellent Quarterly Results; Sales and Production Reaches 73,663 Barrels 

On 30 January 2020, Perth-based oil producer & explorer, Triangle Energy (Global) Limited (ASX:TEG) announced its December 2019 quarterly activity update, highlighting an average production and sales of 801 bopd.

The Au courant audience must know that Triangle Energy resumed production from the CH-13 well at the Cliff Head Oil Field on 13 December 2019 after an electric submersible pump (ESP) workover. Prior to the date, four oil wells operated at 779 bopd; however, with CH-13 coming into production, the steady-state production rates increased to 970 bopd by 16 December and finally reaching a steady-state production rate of 1,028 bopd on 18 December. The oil field with 5 operational wells now has a throughput capacity of at least 1,000 bopd, including 3 horizontal and 2 directional oil wells.

Triangle Energy’s Cliff Head Oil Field Exceeds 1,000bopd: Read Here

December Quarter Highlights

• Cliff Head crude oil production and sales: 73,663 Barrels
• Cliff Head crude oil revenue: $7.10 Million
• Average oil barrel sales: 801 bopd

Cliff Head Charges Premium Over Brent

During the quarter, revenue from Cliff Head increased due to higher crude oil production volume delivered to BP, and higher average realised crude oil price (approximately 13.62% higher than September quarter) owing to increase in demand for sweeter crude triggered by the new International Maritime Organisation (IMO) restriction on sulphur content in marine fuel.

The sweet crude oil demand has led to a premium pricing of oil from the Cliff Head operations over the global benchmark of Brent crude.

The resumption of CH13 ensures the steady-state production of at least 1,000 bopd from the field, leading to a reduction in the per barrel fixed/routine costs. A higher production volume in the March quarter (first recent quarter with 5 operating wells) would help minimise the lifting costs.

The Northern Perth Basin hosts 10 producing fields, with the only offshore producing field being the “Cliff Head field” in production since 2006.

Cliff Head Renewal Project; TEG Continues Identifying New Opportunities

TEG continues to be actively involved in identifying probable prospects with priority to the targets in close vicinity of the offshore platform. Triangle invests its cashflow arising from equity in the CHJV, in the Perth basin geotechnical work. There have been delays in the program, but TEG remains optimistic on finalising and developing the in-field and near field targets within WA-31-L.

Following a company-wide review of the subsurface opportunities, targets for infill and satellite drilling were identified. Moreover, the contingent resources have already been estimated in order to extend the economic life of the Cliff Head offshore platform and the onshore Arrowhead stabilisation plant.

The detailed evaluation followed by the investment decision is already ongoing for the following opportunities within and nearby Cliff Head field -

1. CH11 upward recompletion
2. West High
3. SE Nose
4. Mentelle Updip Prospect

The three-dimensional seismic data was completely reprocessed by December 2019 and the revised interpretation of data is planned during January and February 2020.

Mentelle- The prospect is being evaluated for drilling based on the existing seismic data and has the strongest upside potential among all the priority targets, including West High and SE Nose. The prospects would be ranked during the next quarter, followed by a drilling program. West High and Mentelle Updip prospects are the largest targets by volume and therefore present the longest economic life extension opportunities for the Cliff Head operations.

State Gas Limited Starts Program to Appraise Reid’s Dome

TEG is the major shareholder (32.71%) of State Gas Limited and the investment is equivalent to $29.65 million in value at $0.62 (as at 29 January 2020) per State Gas share.

During the quarter, State Gas commenced a program targeted towards appraising the potential of the Reid’s Dome coals and sands across PL231. In October, the Aldinga East 1A well was spudded, while the Serecold-1 well was spudded and Nylanda-4 well was placed on production test in December 2019.

TP/15 Xanadu Seismic Program Completed

The preliminary interpretation of the 3D seismic data and its linking to the Xanadu subsurface model was completed, last quarter. The Xanadu structure is relatively large but has less than the optimal reservoir. Prospective resources lie within and adjacent to the 40km² seismic area. TEG expects to improve the reservoir quality in future through exploration programs.

TEG Finalises Farmout Agreement for Mount Horner L7(R1)

On 2 October 2019, Triangle announced the completion of the earn-in agreement with all the approvals received for acquiring a 50% stake in the Mount Horner Production Licence, making the company eligible for taking charge of the operations. Triangle and its partners will together finalise the budget and schedule the 3D seismic activities.

Triangle Energy is in the final stages of the planning its basin-wide strategy and the funding requirement and acquisition of capital for the same.

Triangle Energy Strengthening Position in Highly Prospective and Underexplored Perth Basin: Must Read

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