THE CONFERENCE CALLER: With a healthy cash flow coming from its dominant holding (78.75%) in the offshore Cliff Head project in Western Australia, Triangle Energy (ASX: TEG) has been able to chase further growth opportunities in the Perth Basin.
The company has its eye on the prospective Xanadu oil field and is now awaiting the results of a recently conducted 40 square kilometre 3D seismic program.
Located offshore about 270km south west from the WA coastal town of Dongara – and 14km south of the Cliff Head oil field – Xanadu is a joint venture between Triangle (45%) and Norwest Energy.
Triangle is also completing the necessary approvals for the onshore Mt Horner l7 production licence, in which it holds a 50 per cent interest with farm out agreement partner Key Petroleum.
The PL overlies the Allanooka Terrace in the North Perth Basin (and is adjacent to the prolific Dandaragan Trough).
So far, multiple “attic” locations for infill development wells have been identified.
The JV partners now anticipate conducting a 50sqkm 3D seismic survey and drilling at least two in-fill development wells as soon as possible.
Additionally, the WA-based Triangle is looking at another growth opportunity – this time in Queensland’s Bowen Basin via its 35.47 per cent interest in State Gas, 80 per cent owner of the prospective Reid Dome gas project.
In 2018, two wells – Primero West 1 and Nyanda-4 – were successfully drilled, with the 1200 metre deep Nyanda encountering 40.4m of net coal seams as well as 25m of separate carbonaceous shales and thinner coal seams.
During the June quarter Cliff Head generated revenues of $6.89 million for project operator Triangle – a $760,000 increase over the March period due to higher production.