Triangle raises $10m for Perth Basin works

Triangle Energy Group has secured funds from a share placement to complete work at its Cliff Head oil field in the Perth Basin.

Part of the proceeds from the $10 million placement will be used to return a well to production and plan seismic work.

Triangle is planning to drill Cliff Head’s South East Nose, West High and Mentelle wells, and complete grouting work.

Further, the company is preparing to undertake a feasibility study for a Mid West oil refinery, as well as establish a Cliff Head Infrastructure Future Fund to finance major activities.

Managing director Robert Towner said the fund would ensure necessary works may be undertaken without delay.

He said Triangle received overwhelming support for the placement, which was priced at 2.2 cents per share and led by CPS Capital Group.

“This is a true sign that investment in potentially diverse energy companies is strong,” he said.

“Triangle has exposure to production and exploration for conventional oil in one of Australia’s most underexplored hydrocarbon basins, the east coast gas market, renewables and critical processing infrastructure.

“The company is committed to building a strong balance sheet to demonstrate its ability to implement capital projects to extend the life of its assets, particularly Cliff Head.”

Triangle will issue up to 455 million shares through the placement in two tranches, with the first expected to occur on or around June 29.

Its shares closed down 18 per cent on Thursday to trade at 2.3 cents.