Junior gas Producer Works the Angles
A change of name and project-focus saw Perth-based Triangle Energy transform from a company with promising exploration interests to become a gas and condensate producer generating cashflow.
At an AGM in November 2009 shareholders of Maverick Energy Limited voted in favour of acquiring Triangle Energy Limited and changing the company name to Triangle Energy (Global) Limited.
Triangle Energy had already secured the 100% ownership of Triangle Pase Inc (TPI) in June 2009.
TPI, in turn holds 100% interest of the Pase Production Sharing Contract (PSC), located in Aceh province, North Sumatra, Indonesia.
The Pase Field covers an area of some 922 square kilometres that was originally acquired by ExxonMobil, which had carried out limited exploration on the acreage specifically targeting gas supply for the Arun LNG plant.
“It was a field that had been closed because it wasn’t seen as a viable opportunity for a major oil and gas company,” Triangle Energy Executive Chairman John Towner told The Inside Story.
“We came along and viewed it differently. We saw it as being extremely viable and we took up the opportunity.”
The Pase Field was discovered in 1983 with production commencing in 1998. In 2003 ExxonMobil estimated the field to contain 498 billion cubic feet (Bcf) of gas.
At the time Triangle Energy acquired the field cumulative production had totalled 183 Bcf.
Since the acquisition of TPI in June 2009 Triangle Energy has achieved the successful re-establishment of gas production at three wells: the Pase-A5 well in July 2009, the Pase A-6 well in October 2009 and the Pase A-1 well in April 2010.
“This is a big field with the potential to get much bigger,” Towner said.
“When we took it over it was pretty run-down and there wasn’t much happening.
“We have totally refurbished it to the point where it is now, once again, an operating gas field.”
The combined flow rate from the three re-established wells increased from 0 million cubic feet (MMcf) per day at the beginning of 2010 to 6.5MMcf per day at June 30.
By September the combined gas production was exceeding 10MMcf per day.
The gas from Pase is predominantly sold through the Arun LNG plant at a premium price tied to a basket of crude oil markers. A small amount of Triangle’s gas (in 2010, less than 10% of gas sold), is sold to the domestic Indonesian market.
The Pase PSC is an arrangement between TPI and the Government of Indonesia that was originally signed between the government and Mobil Pase in February 1981 for a 30 year term.
This means the current PSC is due to expire in February next year, however Triangle Energy announced in March 2010 it had received verbal confirmation from the government’s PSC administrator, BPMIGAS of an extension of 377 days to the contract period extending the expiry date to February 2012.
TPI has applied for a 20 year renewal of the PSC, which is currently progressing through government channels including technical and commercial reviews by MIGAS and the Ministry of Energy and Mineral Resources, as well as approval from the Aceh government.
“Everything in that regard is going well so far and everyone is happy for us to be operating the project.”
The growth Triangle Energy has experienced this year has also resulted in the appointment of new personnel.
Rob Lemmey was appointed to the board as a company director in January following his appointment as country manager – Indonesia for TPI in December 2009.
Lemmey brings over thirty- five years experience and in-depth knowledge of business development of the Indonesian Oil and Gas industry.
Joseph Oravetz is a highly experienced Geophysical Engineering and joined Triangle Energy in June 2010 as exploration manager. He has worked globally for ExxonMobil, Chevron, and Premier Oil.
Triangle Energy is very conscious of its position within and responsibility to the community surrounding the Pase Field.
The company has been proactive in refurbishing two new schools and establishing a medical centre, where it is employing local people.
“We are employing more than 50 local people and are looking to employ as many local people as we can,” Towner explained.
“What people have to understand is that, unlike Australia that has many strings to its bow, these people don’t have that. They don’t share in the wealth that we and the rest of the world do.”
“We hold the view that as this is their country and their commodity they should be entitled to their share in it.”
“In return we get our share and everybody is happy.”
It is this attitude that is most likely to see Triangle Energy emerge as a preferred employment alternative for the local community.
Not only that but should another, similar project opportunity arise Triangle Energy would hope to be one of the first companies approached for its development.
“We have made for ourselves a pretty good start in the area that we can develop,” Towner said.
“We can become quite a large small company, but if we accomplish that in one region and everybody is pleased with what we do then we also develop the potential for that culture of accomplishment to spread.”
Giving back to the local community is an important cultural aspect of Triangle Energy, which was recently complemented by the company giving something back to its shareholders.
This was in the form of the payment of a maiden dividend to company shareholders in September of 0.2316 cents per share.
“We had a reasonably large amount of money in the bank,” Towner explained.
“We could have kept it but we decided to go to the shareholders and say, ‘this is our policy, that a portion of our net profit goes back to our shareholders’.”
“My view is simple. That is if you pay your shareholders a dividend they know what your policy is.”
…The Short Story
Unit 7, 589 Stirling Highway
Cottesloe WA 6011
Ph: +61 8 9286 8300
Fax: +61 8 9385 5184
John Towner, Steven Hamer, Lewis Johnson, Adam Sierakowski, Rob Lemmey
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