Triangle clears decks for offshore WA gas push ahead of Tetragon float

Triangle Energy has tightened its grip on its West Australian turf, moving to 100 per cent ownership of its key onshore Perth Basin permits, L7, or Mt Horner, and the adjacent EP 437 acreage. 

The consolidation comes after subsidiaries of Strike Energy and Echelon Resources voluntarily withdrew from the permits and transferred their interests back to a Triangle subsidiary, a move now approved by the Department of Mines, Petroleum and Exploration.

The move allows Triangle to clear the decks and seek new partners to advance what it calls “attractive exploration targets” in the highly prospective basin.

Triangle Energy chief executive officer Rory McGoldrick said: "…we are pleased Triangle is now the 100% titleholder of these permits. We will now progress discussions with new potential partners to continue our exploration efforts within this highly prospective Perth Basin acreage."

The consolidation is a pivotal move in the company’s broader “divide-and-conquer” strategy, which sees it sharpening its focus on Perth Basin oil and gas and its UK North Sea assets, while spinning out its Asian growth engine into a standalone, ASX-bound explorer, Tetragon Energy.

Behind the corporate manoeuvring in the Perth Basin is a compelling geological story in which Triangle has elevated the MH-28 structure in its onshore Mt Horner permit as a leading target for Dongara oil sands. Lurking below this primary target lies additional upside in the Irwin River coal measures and the Kingia reservoir, in addition to deeper gas potential interpreted in a weathered basement wash play.

The permits host a best estimate prospective resource of 256 billion cubic feet of gas, with the MH-28 target alone carrying a 142 Bcf gas target and 2.7 million barrels of prospective oil.

While Triangle doubles down on commercial execution in mature basins, the bigger Asian growth story now lies with Tetragon. With an ASX listing in its sights, the freshly spun-out company is set to emerge as a high-octane Southeast Asian explorer built around its Philippine gas assets.

The centrepiece is two permits in the Sulu Sea’s Sandakan Basin near Borneo, part of the prolific Circum-Borneo hydrocarbon province. The region is a petroleum powerhouse, home to giant developments such as Kikeh, with a recoverable oil estimate of 400-700 million barrels, and Gumusut-Kakap, producing 150,000 barrels of oil per day.

Tetragon’s 37.5 per cent interests in the permits are anchored by the Dabakan-1 and Palendag-1 gas discoveries, which underpin best estimate contingent resources of 470 Bcf of gas and 5 million barrels of condensate.

The leadership of the two entities mirrors their distinct strategies. Rory McGoldrick, whose background spans law and corporate transactions, is at the helm of Triangle, aligning with its focus on commercial execution. Meanwhile, former Triangle managing director and geophysicist Conrad Todd has crossed the bridge to lead Tetragon’s exploration-heavy charge into Asia.

The strategic split is designed to align management expertise with two different growth stories, reduce funding pressure on Triangle and preserve shareholder exposure to both, with a planned in-specie distribution of Tetragon shares now complete ahead of a 20c listing on the ASX next week.

With today’s news, Triangle has cleared a path to take full control of its Perth Basin destiny. As it seeks a new partner to test targets like MH-28, the market will be watching to see how it leverages this newfound freedom, just as its ambitious spin-out, Tetragon, prepares to hunt for elephants in Asia.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au