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Triangle Energy (Global) Limited (ASX:TEG), an oil producer & explorer company with operations in the Perth basin, owns (78.75%) and operates the flagship Cliff Head Oil Field, including the only offshore and onshore crude oil facilities in the basin.
TEG Portfolio
The Cliff Head operations are located in the underexplored Perth basin and the Company is advancing on future prospects to almost quadruple its oil production to ~4,000 barrels per day by early 2021 with economic life beyond 2030. For the economic life extension, TEG is working on Cliff Head Renewal Project and more details on this project can be read here.
The Company after taking over the operations has been focused on reducing the operating costs to further increase the profitability of the operations. At present, the Company operates 5 producing wells at the Cliff Head offshore site.
On 13 March 2019, Triangle Energy announced the suspension of production from the CH13 well following a technical issue with the downhole electric submersible pump (ESP). ESP is used extensively across the oil & gas industry to provide artificial lift to draw out crude oil from deep wells and also facilitates in managing production rates with varying suction.
Following the suspension of production from the CH13 well, Triangle Energy evaluated alternate technologies to replace downhole ESPs. A Hydraulic Jacking Unit (HJU) or Platform was selected after the technology proved technical superiority and cost effectiveness in comparison to the Coiled Tubing Unit recovery and deployment method.
The au courant audience must know that the CH-13 well returned to production on 13 December 2019 following the installation of the ESP replacement. The ESP was tested on the next two days to further attain the steady state production rates of around 150 bopd (barrels of oil per day) from the CH-13 well and 970 bopd from the field on 16 December 2019.
By 20 December 2019, the ESP ramped up the throughput with field production optimised at over 1,000 bopd.
Interesting Read: Triangle Energy’s Cliff Head Oil Field Exceeds 1,000bopd; Are the Share Prices Justified?
Change in ESP Replacement Methodology: Optimising Well Uptime with Cost Reduction
The Company has concluded a review program for the methodology of ESP replacement. The successful ESP workover and the resumption of production from CH-13 well reinforces TEG’s confidence in the Cliff Head future operations.
Triangle Energy believes the new change in methodology will lead to-
- Secure and more reliable operation under a revised safety case
- Reduced well downtime ensuring higher well uptime and ease in maintaining the inventory
- Economic benefits as compared to the previous methodology and result in a substantial reduction in capital expenditure on future workovers.
Oil production at Cliff Head’s offshore Alpha platform resumed on 10 March 2020 after an electrical fault on 24 February 2020. The electrical fault was observed during a scheduled maintenance, following which the site management suspended the production and initiated an emergency management plan.
Following the resumption of oil production, Robert Towner, Managing Director of Triangle Energy, said -
Must Read: Triangle Energy Resumes Production at Cliff Head and Onboards New COO, Stock Zooms 12%
Production levels, as on the Company’s announcement dated 11 March 2020, stand at 950 barrels per day. In the upcoming days, the production levels are expected to increase to 970 barrels per day.
Stock Information - The TEG stock was trading at $ 0.023 a share on 17 March 2020 (AEDT 03:17 PM). The market capitalisation of Triangle Energy stood at $ 9.74 million.
