Triangle Energy (ASX:TEG) has entered into an agreement with Goshawk E&P to farm into ATP1186 in the Surat Basin, Queensland.
ATP1186 is 100 kilometres west of the Moonie oil field, one of Queensland’s oldest and largest oil fields, and is proximal to the Alton and Fairymount fields, both of which have produced in excess of 1 million barrels of oil.
There is a significant amount of geological information for the area that will now be used to progress the understanding of the licence with a view to identifying prospects and drilling targets.
Triangle will acquire a 75% ownership of ATP1186 in two phases - a 50% interest in return for repayment of past costs of $73,830 and the issue of 120 million Triangle shares, and 25% upon completion of a four year work program which includes acquisition of 105 kilometres of new 2D seismic and drilling two exploration wells.
This transaction is the first step in growing Triangle’s portfolio in line with its strategy of finding low cost prospective and near production assets.
In addition to this transaction, Triangle has executed a consulting agreement with Goshawk Energy for the provision of geological and geophysical services including progressing to exploration drilling and the identification of future projects.
The company raised $1 million during the quarter, bringing its cash balance to $1.5 million, and is lightly valued at $5.5 million.
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