PODCAST: Three points to Triangle Energy's success

Aussie oil producer holds key to supply security in WA

Paul Hunt

Deputy Editor: Energy & Commodities

Paul Hunt

WESTERN Australian oil producer Triangle Energy (ASX:TEG) owns a massive footprint of prime acreage in the onshore and offshore Perth Basin.

The company, led by well-known executive Rob Towner, has three key points of difference to other oil and gas explorers and producers in Australia.  

For a start, it already has a producing oil field offshore the MidWest of Western Australia called Cliff Head.

Triangle Energy plans a low-cost redevelopment of the field, which will target three prospects known as Mentelle, Western Development, and South East Nose.

At a cost of just $20 million, the wells will intersect three "drill ready" prospects to boost production from the field to between 4000 and 10,000 barrels of oil per day.

The Cliff Head project contains 1.2 million barrels in proven reserves, but could hold as much as 9.3 million barrels of oil on a best prospective resource basis.

Plans are already underway for the redevelopment and can be drilled from the already existing Cliff Head platform.

The platform is in shallow waters just of Dongara and is connected to a plant called Arrowsmith by a 12-kilometre pipeline. 

Arrowsmith is the start of the refining process, separating water from crude and delivering oil which is then trucked to BP's Kwinana terminal to the south.

Oil is then stored at Kwinana and then exported to Singapore for international markets. 

The pipeline which connects Cliff Head to Arrowsmith is critical infrastructure, in that it could also be modified to include potential offshore wind connection to the WA grid. 

Meanwhile the Arrowsmith plant, which has a capacity to refine 15,000 barrels of oil equivalent per day, is a highly sought-after facility.

With interest peaking in onshore oil exploration in Western Australia, the Arrowsmith plant could be used for third-party processing going forward.

But this is just the tip of the iceberg for Triangle, because it holds a vast 10,000 square kilometres of exploration acreage where oil has been found before. 

It owns the Mt Horner L7 permit along with the adjacent EP 437 permit onshore. Triangle Energy will undertake 3D seismic surveys across the permits to unlock future discoveries.

The Mt Horner project has already produced 1.8 million barrels of oil to date, but holds many exploration opportunities.

Offshore again, Triangle Energy owns the WA-481-P licence, surrounding its Cliff Head project which is one of the largest underexplored permits in Australia.

Triangle Energy has teamed up with fellow ASX-lister Pilot Energy to pursue both oil exploration and look to a offshore wind project in the future.

In this podcast, Energy News senior journalist Paul Hunt talks to Triangle Energy managing director Rob Towner to discuss the short- and long-term benefits of its assets.