Triangle Energy Global and Key Petroleum have extended the completion of their onshore Perth Basin acreage sale until the end of September due to unforeseen delays however the pair are confident the deal will be cemented before then. Triangle is soaking up Key’s interests in its L7 and EP 437 permits as the company refocuses its growth strategy from offshore Perth Basin oil towards big inland gas targets.
The L7 permit contains the shallow, historical Mt Horner oilfield that has largely been decommissioned. However, Triangle has its sights set on deeper targets.
Triangle has paid Key $500,000 so far, with the outstanding $100,000 to be handed over on completion of the deal.
The resurgence in the fortunes of the Perth Basin has been driven by the discovery of large, deep gas reservoirs in the Kingia formation, illustrated by the large Waitsia, Senecio, Walyering, West Erregulla and Lockyer Deep gas fields. The 117 million cubic feet per day flow rates from Lockyer Deep were among the highest recorded in Australia.
The Perth Basin is a large Permian age sedimentary basin extending about 1300km along the West Australian coast from Dongara in the north to Margaret River in the south. The basin stretches out both onshore and offshore and has been explored for oil and gas since the early 1950s, with most of the success found on the onshore, northern region.
Triangle management has previously described the two permits as the jewel in the crown of the company’s asset base as it gradually moves away from the oil production and significant decommissioning costs associated with Cliff Head into cleaner burning gas.
The local oil and gas player agreed to assume all of Key’s ongoing work program commitments within EP 437, that required shooting 20 square kilometres of 3D seismic and drilling a well before May 2022 with a possible second well next year.
Triangle squared away its seismic obligations last month using low impact vibroseis trucks once local farmers had finished cropping and other sensitive agricultural activities and is now processing the data.
A complete review of the seismic data is expected to take four to five months, however it is working on a fast-tracked model to start firming up drilling targets earlier.
Key has turned its focus on its Cooper-Eromanga Basin assets in Queensland to potentially supply east coast gas markets, saying in light of BP’s closure of the Kwinana Oil Refinery, the potential of the Bookara Shelf oil fairway will be best unlocked by a dedicated Perth Basin operator.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
