Triangle Energy’s imminent move to hold 100 per cent of a highly prospective Perth Basin block known as “L7” has been boosted by news it has delivered a 370 per cent increase in its best gas resource estimate – from 165 billion cubic feet of gas to 617bcf. Triangle is in the process of buying the 50 per cent it doesn’t already own of the acreage from departing partner Key Petroleum.
The company also attributed a best estimate prospective oil resource of 19 million barrels to L7, after trimming the leads down to those it deemed to have meaningful, potentially economic resources.
The new numbers come courtesy of a new Triangle board and management installed in February that cast fresh eyes over the Triangle asset base which also includes a $15 million stake in Queensland gas producer, State Gas.
Managing Director Conrad Todd and Non-Executive Director Mike Collins are veteran geoscientists with specific Perth Basin experience. Collins in particular was intimately involved with the development of Mitsui’s ground-breaking Waitsia field which is located just to the south of L7.
The L7 permit is also located just north of the Senecio and Lockyer Deep gas fields and according to the company, contains similar-looking structures to Senecio, Lockyer Deep and also Waitsia. The company says it exhibits the same reservoir targets in the Kingia and Highcliffe formations, although at between 1800 metres and 2300m deep they are significantly shallower and cheaper to drill than the 3000m plus depths of the others.
It also contains the historic Mt Horner oilfield that is now decommissioned and shallower, potential oil and gas opportunities in the conventional Allanooka Terrace in addition to the deep Perth Basin gas targets.
Triangle led the upgrade with the Booth gas prospect, having a most likely prospective resource of 335bcf, followed by the Mtn Bridge South lead with 148bcf and Mt Horner Deep with 78 bcf best estimate figures.
It defined seven oil-prone leads from the Dongara Sandstone formation with the Longhorn and Hinkley leads each having a best oil estimate of 4.2 million barrels.
I am pleased to report to shareholders that Triangle has added to the capacity and increased the focus of the subsurface team resulting in a technical review and substantial increase in the resources attributable to the L7 project. Net resources will double when we complete the acquisition of the remaining 50 per cent interest from Key.
Triangle continues to progress the acquisition of 3D seismic over these prospects and leads which we expect to increase chance of success and enable us to bring a partner into the L7 permit.
The asset sale by Key, as it departs to focus on its Queensland assets, include the adjacent EP437 in addition to L7, with the company previously saying the deal should be completed by June 30.
Triangle said it would not release a resource estimate for Permit EP437 until the acquisition of the remaining interest has been completed.
The company’s main gig is its 78 per cent stake in the producing Cliff Head Oil Field and Arrowsmith Stabilisation Plant, currently generating between 650 and 700 barrels of oil per day.
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