Triangle Receives $2.4 Million and Reduces Operating Expenses at Cliff Head

Triangle Energy has received its first payment for the sale of its stake in the Cliff Head oil joint venture (JV) in Western Australia.

The $2.4 million payment from joint venture partner Pilot Energy represents the first of at least four payments expected to total up to $18 million for Triangle as it continues its push toward conventional onshore oil and gas exploration in the lucrative Perth basin.

The company insists it is now fully funded for its anticipated Becos-1 exploration well in the North Perth Basin, which is expected to be drilled by the end of the year.

Importantly, Triangle has also transferred all operating costs associated with the Cliff Head facility to Pilot, which will seek to use it for carbon storage.

Triangle is due to receive its second payment for Cliff Head of $4.1 million by the end of November, bringing the total payout from the sale to $6.5 million by the end of the year. Further payments will follow upon completion of milestones, including $4 million contingent on the issuance of a Greenhouse Gas Injection (GGI) license and up to $7.5 million in royalties from the proposed Cliff Carbon Capture and Storage (CCS) pilot project. Head.

Triangle’s plans to drill the Becos-1 well are moving forward noticeably with the rig already positioned for drilling within the next three months.

The prospect is within the “EP 437” concession, where the best estimate has identified oil reserves of 5 million barrels (million barrels) with the potential to reach 21 million barrels.

Becos-1 is expected to be a very shallow, low-cost drilling project for the company, targeting just 1000m below the surface, a fraction of the size of many similar targets in the Perth Basin.

The drilling will be conducted in conjunction with joint venture partners Strike Energy and Echelon Resources. Triangle holds a 50 percent operator interest in the EP 437 permit, while Strike and Echelon each hold 25 percent.

Triangle Energy Managing Director Conrad Todd said: “Receipt of this first payment from Pilot ensures that Triangle will fully fund its interest in the future Becos-1 well in the Perth Basin. Our financial outlook is further bolstered by an additional $4.1 million payment from Cliff Head due next month, while Pilot will now also pay all operating costs at Cliff Head Point going forward. This puts Triangle in a very strong financial position with significant growth potential offered by the Bekos-1 well.”

The company’s portfolio now includes not only the EP 437 license, but also a 50 percent stake in the Horner and L7 licenses.

In the UK, Triangle also recently acquired an interest in offshore blocks in the Outer Moray Firth, including the Cragganmore gas field. These assets are expected to be combined with future acquisition opportunities in the North Sea following further regulatory clarity and changes introduced by the new UK Government.

The company is also seeking to explore three prospects within its L7 permits, with the most likely being the up-dip MH2 prospect, which has a best estimated resource of 2.7 million barrels.

The latest handover of the reins at Cliff Head completes Triangle’s transition from its mature Cliff Head assets to promising exploration opportunities in the Perth Basin.

With more than $10 million in cash on hand and much more to come, Triangle is well positioned to achieve greater exploration success across its many prospects in the Perth Basin.

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