Triangle Energy (Global) Ltd (ASX:TEG) (FRA:WMOA) is ready to begin activities on the CH-6 Workover and CH-11WI Slickline Intervention campaigns at the Cliff Head operations in the Perth Basin of Western Australia.
Over the coming month, the company will undertake the two campaigns with the aim to increase production at Cliff Head.
The CH-6 well was shut in June 2020 due to Electrical Submersible Pump (ESP) failure and in October 2020, Triangle Energy attempted to replace the ESP but was unable to retrieve the failed equipment.
Re-entering well with new equipment
The Perth-based company will be re-entering the well with a swathe of new equipment and enhanced capabilities and expects to bring approximately 120 barrels of oil per day online from CH-6.
In conjunction with the CH-6 Workover, TEG will undertake a Slickline Intervention on CH-11WI.
The company has completed studies that indicate reconfiguration of the injection zone of CH-11WI can contribute to increased oil recovery and further enhance daily oil production.
Non-renounceable entitlement offer
On June 23, a pro-rata non-renounceable entitlement offer was launched to eligible shareholders of quoted options in the company.
The company will issue up to 310,381,741 new options to raise up to approximately $310,000, before costs.
TEG has set the price at A$0.001 each with the offer based on one new quoted option for every two shares held on the record date.
Each new option will have an exercise price of A$0.035 each and an expiry date of August 4, 2023.