Triangle Energy (Global) Ltd and partner Talon Energy Ltd (ASX:TPD) welcome the completion of farm-out negotiations and the signing of a binding term sheet with New Zealand Oil & Gas Limited (NZO) which will acquire a 25% interest in Permits L7 and EP 437 in the north Perth Basin of Western Australia.
This final piece of TEG’s funding puzzle for these highly prospective permits follows the 25% farm-out announced with Talon Energy last month.
Three partners
The farm-out of TEG's interests in L7 and EP 437 will result in reimbursement of all costs to acquire and process the Bookara 3D seismic and will cover nearly all of Triangle’s upcoming drilling costs in the permits.
The joint venture will comprise three technically competent and well-funded partners keen to develop the exciting north Perth Basin acreage.
NZO welcomed
Managing director Conrad Todd said, “I am pleased to report to shareholders that Triangle has successfully farmed out a further 25% interest in the L7 and EP 437 Permits.
"We are delighted to welcome NZO, who are an international company, based in Wellington, listed on the ASX, who have both Australian and international exploration and production.
"We look forward to working with NZO’s management and staff in conjunction with those of Talon Energy who share our vision on the prospectivity of these permits.”
Triangle will maintain ownership and a 50% interest in both permits.
Reimbursement of costs
As part of the farm-in, NZO will reimburse 50% of the cost of the Bookara 3D seismic ($1.9 million), will fund 50% of the first well in L7 ($3.75 million) plus 37.5% of the second well drilled in L7 ($2.81 million) and fund 50% of the commitment well in EP 437 ($1.5 million).
NZO will, therefore, have paid a total of $9.96 million for a 25% interest in the permits.
The first well in L7 is planned to be drilled in the first quarter of 2024.
“Well-aligned joint venture”
"We believe we have a well-aligned joint venture who are keen to now progress our exploration plans to drill these exciting blocks in the Perth Basin,” Todd said.
"This additional farm-out of our interests and costs in L7 and EP 437 will allow Triangle to allocate more capital towards building a balanced and exciting portfolio of assets to drive our growing energy company.”
Seismic data
Triangle Energy has previously acquired the Bookara 3D seismic data across both permits and funded the total cost of acquiring and processing the data.
The company has recently received the final Pre-Stack Depth Migrated seismic data. Interpretation is ongoing and Triangle expects to provide further data on the prospectivity by the end of February.
“Exciting province”
NZO chief executive Andrew Jefferies says entry to the Perth Basin via farm-in to L7 and EP 437 provided low-cost exposure to onshore prospects in an exciting area with joint venture partners the company knew well.
"We have been looking to make an entry to the Perth Basin for some time. It is an exciting province with many large gas discoveries and new production coming on into a growing market.
"Our technical team identified L7 and EP 437 as high-potential areas for hosting significant gas fields and the new 3D seismic is the right tool to de-risk the deeper Early Permian gas reservoirs.
"We look forward to working closely with the joint venture to unlock the potential of these two permits which have the potential to drive meaningful shareholder value.”
He added: “Triangle are Perth Basin experts whose scale, culture, values and technical skillsets are an ideal fit with ours.
“Like New Zealand Oil & Gas, Triangle values clean burning locally produced natural gas as a key part of the transition to a low carbon future in Western Australia; providing energy to the mining operations that will power the world’s e-future as well as cooking those West Australian lobsters on the barby (sic).”