PODCAST: Investors flock to Triangle Energy's new shape

Aussie oil producer, the undervalued, set for big things in next 12 months.

Paul Hunt

Deputy Editor: Energy & Commodities

Paul Hunt

Triangle Energy is going from strength to strength following a recent capital raise, as investors stream around the junior.

What's peaked investors interest in Triangle Energy? Probably hearing how the company quickly acquired one of the biggest footprints of any energy company of its kind, in Western Australia's most exciting oil and gas province. Along with its new energy opportunities.

The company, led by well-known Rob Towner, has an incredible portfolio of acreage and is preparing to embark on its diversified energy strategy.

Triangle Energy (ASX:TEG) is perhaps the most underestimated stock on the Australian Securities Exchange with a market cap of around $22 million.

With an already producing oil field offshore Western Australia, Triangle Energy receives regular revenue, something more than half the oil stocks in Australia can't boast.

In other words, the stock is stable, which in this climate is something highly sought-after.

It also holds a huge stake in fellow ASX stock State Gas, worth roughly $30 million, which is bigger than its market cap, all but ensuring returns for investors.

Not only does it possess a strong balance sheet and fixed interest in other companies, but it is also focused on growth of its own and has the potential to corner a lucrative market in WA.

Triangle's offshore Cliff Head oilfield is set to ramp up exponentially. Two, perhaps three, additional wells will provide new oil output, which will be shipped to Singapore in the short-to-medium term. At the current $65-$70/bbl benchmark price, this should be an absolute windfall.

Cash from oil production will fill its coffers while it looks to explore a whopping 10,000sq.km of onshore acreage.

Triangle moved quickly to capitalise on the last oil price downturn, acquiring an enviable position onshore and offshore in the Perth Basin - which has delivered a fantastic results for fellow explorer Strike Energy and others.

A point worth noting, is the ownership and operatorship of the Arrowsmith Stabilisation Plant.

The plant essentially separates oil from water, but it cannot be underestimated. 

Triangle Energy is currently considering a small-scale refinery onsite. It comes as the nation currently grapples with a loss of refineries and a need to shore up energy security, which leads the question… could this project change the game?

Diesel supplied from Arrowsmith and an added-on small-scale diesel refinery could power WA's iron ore industry.

The refinery would take Cliff Head oil and new resources from Triangle's onshore fields, and simply refine it for mining vehicles and power generation.

This plant is one of just handful in Australia, never mind WA where there is no commercial oil refinery.

Nat gas is important to note here. Triangle Energy holds a very vast position of prominent gas producing acreage. It's early days, but if a gas discovery were made, it could quickly tie-in to one of the many pipelines supplying both the domestic gas market and the mining sector.

However, that's just one of the many exciting opportunities for the ASX-listed junior.

Another reason to be bullish, is Triangle's future plans as a renewable energy producer.

It has partnered with Pilot Energy - also ASX listed - led by Brad Lingo. 

The venture plan to investigate the offshore wind, and potential onshore solar, capability of Triangle's permits.

So, Triangle Energy may not just be an oil producer and supplier in the future. It's future-proofed itself.

It already has the infrastructure for offshore wind, in that the pipeline from the Cliff Head field could also take cables to shore.

Currently there are no offshore wind projects up and running in Australia.

Is Triangle Energy, a traditional oil producer, about to forge the future for offshore wind?