Triangle Energy (Global) Ltd is fully funded to proceed with drilling of the Becos-1 well in the Perth Basin. A rig has been secured and drilling is expected to begin within the next three months.
The company has banked $2.4 million from Pilot Energy (ASX:PGY) for the sale of its share of the Cliff Head Arrowsmith assets. The initial payment also includes reimbursement for past operational costs at the Cliff Head Field.
A second payment of $4.1 million is scheduled to be made on November 29, 2024, and TEG will receive $4 million upon the award of a Greenhouse Gas Injection Licence and up to $7.5 million in royalties from the Carbon Capture and Storage (CCS) project.
Operating costs covered
Following the sale, Pilot Energy (ASX:PGY) will cover all operating costs at the Cliff Head Field.
“The receipt of this first payment from Pilot ensures Triangle is fully funded for its share of the upcoming Becos-1 well in the Perth Basin,” Triangle managing director Conrad Todd said.
“Our financial outlook is further bolstered by the additional $4.1 million payment from Cliff Head due next month, while Pilot will now also pay all the operating costs at Cliff Head point forward.
“This puts Triangle in a very robust financial position with the substantial upside offered by the Becos-1 well.”
Todd recently caught up with Proactive’s Tylah Tully to discuss funding for future projects, including the Becos well, which recently has its environmental plan approved, clearing the way to drill its Becos-1 well in the North Perth Basin.
