Triangle Energy (Global) Ltd’s (ASX:TEG) shares surged circa 59% on Monday after drilling hydrocarbons at its Xanadu prospect, 40 kilometres south of Dongara in Western Australia.
The company’s drilling operations have made excellent progress since the well was spudded on 4th September 2017.
Importantly, the Xanadu-1 well has intersected hydrocarbon bearing reservoirs demonstrated by elevated gas readings, oil shows, fluorescence and cut-fluorescence whilst drilling reservoir sections.
The drilling results provide sufficient encouragement for the TP/15 joint venture (JV) to commit to running a wireline logging suite that includes pressure testing and fluid sampling.
The JV partners in TP/15 include Norwest Energy NL (ASX:NWE) (operator - 25% interest), Triangle (30% interest) and two other groups.
Triangle’s recent operations on location have gone well, and drilling is being extended beyond the base of the High Cliff Sandstone to include the deeper sandstones of the Holmwood Shale.
The total depth has reached 2,035 metres MDRT (measured depth below the rotary table) as on Sunday, 17th September 2017.
Incidentally, Triangle is planning to undertake a share placement at $0.09 per share to raise $1,475,000.