Perth-based oil production & exploration company, Triangle Energy (Global) Limited (ASX: TEG), on 24 February 2020, announced that operations at the Cliff Head's offshore Alpha platform had been paused following an electrical fault. The light sweet crude oil producer expects the production to resume in the next two to four weeks.
The au courant audience should know that the electrical fault was observed during routine maintenance. The Company’s on-site management team, upon observing the electrical fault, shut down the production. As per standard procedures, the emergency management plan was initiated.
Triangle Energy has registered the incident with the National Offshore Petroleum Safety and Environmental Management Authority, the supervisory, regulatory authority, under Clause 82 of Schedule 3.
Making a statement, Triangle Energy, the premier oil producer from the Perth basin, confirmed safety of all the staff and initiation of a remedial program to recommence the steady and stable production as soon as possible, with the anticipated timeframe of two to four weeks.
The Company will keep its investors and shareholders updated on the progress of the remedial program and the impact on production through its continuous disclosure obligations.
Cliff Head Operations in Perth Basin - The Light Sweet Crude Oil Producer
The Cliff Head operations include offshore Alpha platform and onshore Arrowsmith stabilisation plant with a capacity of 15,000 bopd. The Cliff Head Alpha platform is the only offshore facility equipped with the Cantilever jack-up rig in the Perth basin, almost 14 kilometres offshore and 270 kilometres north of Perth.
The field has a production capacity of approximately 1,000 bopd from the existing 5 production wells (3 horizontal and 2 deviated). A 14 kilometres long unmanned pipeline transports crude oil from offshore platform to onshore Arrowsmith processing facilities.
The light sweet crude oil from the Cliff Head operations has an API of ~330 (Light Crude Oil), which is then sent to BP’s Kwinana oil refinery. The light sweet nature of crude oil is the most sought after and has helped earn Triangle premium over the benchmark Brent crude prices.
In the mid of December 2019, the Company achieved steady production rate of over 1,028 bopd from its 5 oil wells.
The current reserves for the Cliff Head field stand at 1.71 MMstb (million stock tank barrels) and will add an additional 2C Contingent Resource of 3.13 MMstb on receiving the approval of the final investment decision on the Cliff Head Renewal Program, which aims to increase the production capacity to ~4,000 bopd by 2021 and expand the economic life to beyond 2030.
The TEG stock was trading at $0.044 a share on 26 February 2020 at 3:37 PM AEDT, up 2.326% from its previous close, with a market capitalisation of $15.51 million.
To sum up:
Triangle Energy is committed to the safety of its staff and anticipates resuming production as soon as possible. The Company, valuing the interests of its shareholders, is already in the advanced stage of evaluating future projects to expand the economic life with higher light sweet crude oil production.