OPERATIONS

Investors back Triangle Energy's Perth Basin plans

TRIANGLE Energy has successfully raised A$2.2 million through a placement and launched a share purchase plan to raise a further $1 million.

Investors back Triangle Energy's Perth Basin plans

 

Triangle Energy holds interests in both the onshore and offshore Perth Basin, though its only producing asset is the historic offshore Cliff Head oilfield.

The successful placement was backed by institutionals and sophisticated investors with 73 million shares offered at 3 cents per share. The offer price was an 18% discount to the five-day trading price from August 21. 

The Share Purchase Plan is open to current shareholders and will allow them to acquire a further $30,000 worth of new shares at the same price to raise a total of $1 million. The SPP will close next month. 

The company plans to use the total $3.2 million to conduct workovers across its Cliff Head field to increase production by 400 barrels of oil per day. This will take the total amount of production to 1000 bopd. 

Triangle chief Rob Towner said the workover program would bring two wells, Cliff Head-6 and Cliff Head-7 back online after they were shut-in last June. 

"Both workovers were planned well before the wells were shut-in and we have been able to bring forward these works as a result," Towner said. 

"The workovers are anticipated to commence in September and we anticipate the additional 400bopd to come on stream immediately after completion of that work."

Excess funds will be used to plan new drilling opportunities across the nearby South East Nose, West High and Mentelle fields. 

The drilling of the three prospects is part of the company's Cliff Head Renewal Project, aimed at extending the life of the project and the associated Arrowsmith processing plant. 

Triangle called the three exploration prospects "three highly attractive drilling opportunities" in its last quarterly. 

Mentelle is the largest of the three prospects with an estimated 5 million barrels of prospective resources. The company believes the updip structure is mature for drilling. 

West High is estimated to hold a best estimate contingent resource of 1MMbbl of oil and could be drilled by a deviated appraisal well from the Cliff Head platform. 

Combined, the company's current producing fields and these new prospects, are estimated to have a 2C contingent resource of 3.52MMbbls of oil, and on a 3C basis as much as 5.5MMbbls. 

Triangle shares were trading down 20% at noon today, at 3.1 cents per share. The company has a market cap of $14.07 million. 

Since the oil price crash Triangle's share price has begun recovering, from lows of just 2.4 cents per share to around 3.5 cents.

 

 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Energy News Bulletin Intelligence team.

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.

editions

ENB Cost Report 2021

This industry-wide report aims to understand current cost levels across the energy industry

editions

ENB Social Licence Report 2021

In its second year, this research now includes trends and new findings surrounding impacts and responses as the energy industry seeks to secure and maintain a social licence to operate.