Australian oil and gas major, Triangle Energy, has reportedly secured 100% holding of the oil and gas estate in Western Australia, which presently produces 700 barrels of oil per day and holds another potential 19 million barrels and 617 billion cubic feet of oil and gas, respectively.
As per reports, the agreement with Key Petroleum also includes provision for the former to buy back a 5% production royalty from the latter, making the permits more valuable.
The total bill of the transaction will include a final $100,000 that is due on the purchase of the interests, $500,000 cash on completion, and another $500,000 of Triangle Energy shares which will be issued on or before 30th June 2023.
Triangle Energy has also procured Bookara 3D seismic data throughout the areas with its delivery expected in the final quarter (Q4) for this quarter’s final year. Subsequently, a complete analysis of data are expected to lead to identification of well targets of exploration in 2024.
The Perth Basin comprises several new fields, such as the Waitsia gas field, which is one of the largest gas fields discovered in the country, the Lockyer Deep gas field, which is under development, and Senecio.
Domestic gas users in Western Australia are able to access gas from Perth basin via the Parmelia and Dampier-Bunbury gas pipelines that are close to, or pass over, all these fields.
Conrad Todd, MD of Triangle Energy, told the firm’s shareholders that Triangle has completed the takeover of 100% interest in EP 437 and L7 permits, and has also bought back the percent production royalty from Key, which gives the two permits more value.
Earlier this year, the energy major secured AUD$3.5 million ($2.3 million) through an oversubscribed placement, which would be used for production upgrades at the Arrowsmith Stabilisation Plant and the Cliff Head Oil Field in the Perth Basin.
The company also plans to issue about 269 million new shares at AUD$0.013 ($0.009) per share.