Triangle banks $9.26m from farm-in deal for WA gas permits

WA oil producer Triangle Energy Global has farmed out a 25 per cent stake in two onshore gas permits in the Perth Basin to Talon Energy in exchange for a $9.26 million pay day. The company believes the zones host significant gas resources and plans to unlock its potential through a trio of new exploration holes in 2024.

The company previously described the two permits, L7 and EP 437 as crucial ingredients in its efforts to claw back revenue through cleaner gas operations and curbing costs linked with decommissioning its offshore Cliff Head operations.

The L7 permit is located south of Geraldton in WA and earlier work by the company indicates the acreage could hold a best case prospective resource of 617 billion cubic feet of gas. Importantly, the Dampier-Bunbury gas pipeline runs through the tenure and its presence suggests any discovery could be readily dispersed to the wider market.

The second of Triangle’s recently farmed-out permits, EP 437 is an onshore basin positioned on the flank of the North Perth Basin and adjacent to the Dongara oil and gas field south of Geraldton in WA.

Notably, Perth-based Triangle has already acquired a 3D seismic dataset known as “Bookara” which stretches across the two permits. Triangle believes integrating the information with its existing data reserves could promote a better understanding of the area’s regional prospectivity and ultimately push it closer to discovery.

Bookara is currently being processed and evaluated and a final dataset is expected to be ready later this month. Triangle says its delivery will flow into the identification of new targets and a 2024 drilling campaign.

In exchange for a 25 per cent slice of the two permits Talon will pay $9.26m with the figure to be split between $1.9 million towards the expenditure of the Bookara dataset, a $6.56 million contribution for the cost of two wells set to be plunged at L7 and roughly $800,000 to support the costs of a well earmarked for EP 437.

Triangle’s decision to partner up with Talon appears tied to the company’s development expertise in the zone. Talon’s nearby Walyering gas project which is co-owned with Strike Energy holds a 2P gas reserve of 54.2 petajoules and is expected to deliver first gas early next year.

Talon recently announced the joint venture had signed a gas sale agreement with the $23.98 billion capped Santos for 38.5 petajoules of Walyering-derived gas. The company says the deal could fill its coffers to the tune of roughly $120 million.

Triangle is seemingly moving away from its traditional oil activities with the company also looking to use its Energy’s Cliff Head oil reservoirs in the offshore Perth Basin as carbon storage tanks.

The producer’s oil fields are currently pumping out roughly 700 barrels of oil per day but once exhausted will be used to progress its clean energy initiatives.

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