A joint venture between Cottesloe-based Triangle Energy Global and Royal Energy has taken full ownership of the Cliff Head offshore oil project in the Perth Basin after buying out previous stakeholder Roc Oil for $US3.75 million ($A5 million).
ASX-listed Triangle told the market this morning it and Royal had jointly acquired Roc’s 42.5 per cent stake in Cliff Head, with Triangle now holding a majority 78.7 per cent interest in the asset and taking over as operator.
The project includes the Cliff Head Alpha offshore platform and the Arrowsmith onshore stabilisation plant.
It follows Triangle’s acquisition of a 57.5 per cent stake in Cliff Head in June last year held by Australian energy company AWE.
“The company now controls 78.7 per cent of Cliff Head and we see a great opportunity to progress exploration of nearby appraisal targets and the larger offshore Perth Basin while maintaining strong cash flow from our current production,” Triangle chief financial officer Darren Bromley said.
“Cliff Head’s onshore Arrowsmith stabilisation plant is the only operating crude oil plant in the Perth Basin and is vital infrastructure in the development of exploration success by any explorer in the area.
“The acquisition of Cliff Head, in partnership with Royal, provides Triangle with a cash flow generating operation, strong production rates, exploration opportunities and the capacity to service third party crude in the highly prospective and underexplored Perth Basin.”
Mr Bromley said the oil field currently produced about 1,300 barrels of oil per day gross through the Arrowsmith facility, which has a processing capacity of up to 15,000 barrels per day.
Triangle shares were 2.5 per cent higher to 4.1 cents each at 11:30am.
