Triangle Energy (Global) Ltd (ASX:TEG) (FRA:WMOA) has been up as much as 20% today on confirming prospective and contingent resources for the Cliff Head project in the Perth Basin of Western Australia and progressing a farm-out campaign and well planning for satellite drilling.
The company has launched a farm-out campaign on behalf of the Cliff Head Joint Venture to introduce a new partner to assist with the drilling of the priority targets at the West High, Mentelle Updip and SE Nose wells.
Successful wells on West High or SE Nose could be completed for immediate production and could have initial production rates of 3,000–4,000 barrels of oil per day providing a material uplift to the Cliff Head production if successful – as well as extending the asset life.
Shares have been as much as 20% higher intra-day to A$0.031.
Well planning
The company is also continuing to progress the well planning for the Cliff head satellite wells.
Triangle has received quotes from well construction service providers to complete the Select phase work leading into detailed design for SE Nose, West High and Mentelle Updip, targeting drilling during the first half of 2022.
Cliff Head satellite opportunities.
Cliff Head resources and reserves
In light of BP PLC’s (LON:BP. (NYSE:BP) (FRA:BPE5) intention to cease fuel production at its Kwinana refinery in WA and convert the refinery into an import terminal, the company withdrew its resources and reserves estimates for Cliff Head on the basis that the economic parameters underpinning these were now unknown.
Triangle announced a review of the prospective and contingent resources for the asset, as a result of additional depth conversion work and has now confirmed these Contingent and Prospective Resources with no material changes to the previous assessment.
The company confirms that its reserves estimates remain retracted at this time, as it considers oil marketing opportunities available within the greater South East Asian region.
WA-31-L Contingent and Prospective Resources summary.
As of December 31, 2021, Cliff Head Field was producing approximately 800 barrels of oil per day.
Notably, the economics that underpin the quantum of reserves are dependent on the outcome of the oil marketing opportunities being considered following BP’s announcement of the Kwinana refinery shutdown.
The reserves for Cliff Head field will be reviewed for a June 30, 2021, evaluation date when Triangle has a reasonable basis upon which to consider the economic assumptions underpinning its reserves estimates.