Triangle Energy Global has completed the acquisition of two highly prospective oil and gas permits in WA’s Perth Basin from ASX-listed explorer Key Petroleum. The company previously held a major stake in both assets and mopped up the balance in exchange for $600,000 in cash and $500,000 in shares to be issued on or before June 30, 2023.
The transaction with Key will also see Triangle re-purchase a five percent production royalty from the explorer – a factor management says add significant value to the permits.
Perth-based Triangle previously held a 50 per cent interest stake in the L7 permit, an onshore exploration acerage south of of Geraldton. The tenure blankets the Allanooka Terrace in the North Perth Basin and is contiguous to the productive Dandaragan Trough - a major zone that could potentially host oil and gas in an area up to 12 km wide.
The Mount Horner Field, a tenement within the L7 permit, previously produced over 1.7 million barrels of oil until it was closed off due to high water content and aging infrastructure in 2011.
According to the ground’s former holder, Key, a significant chunk of Mount Horner’s oil was produced from Jurassic period stratigraphies leaving the zone’s north-lying Permian and Triassic layers largely untapped.
Key says the two overlooked areas in L7 represent a significantly underexplored oil play in the northern margin of the Perth Basin.
The second of Triangle’s recently secured permit, EP 437, is an onshore basin situated on the rim of the North Perth Basin and adjacent to the Dongara oil and gas field south of Geraldton in WA.
Key states gas was encountered in the permit through the historic Wye-1 discovery well. The explorer says the output is comparable to material from the Dongara field.
Several other operators have also struck oil up-dip from the Wye-1.
Triangle believes the two permits collectively hold 617 billion cubic feet of gas and 19 million barrels of oil.
The company previously described the two permits as crucial ingredients in clawing back revenue via cleaner gas production and stemming costs associated with decommissioning its offshore Cliff Head operations.
Crucially, Triangle has already acquired a package of 3D seismic data which stretches across the two permits and it expects to receive a final data set later this year.
The company then plans to analyse the data with the aim of identifying a raft of new targets ahead of a 2024 exploration program.
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By Matt Birney
