Triangle Energy (Global) Ltd has capped off a busy June quarter, ending the period with A$598,000 in the bank, an offtake deal with BP and firm commitments for a $10 million capital raise.
Its Cliff Head Oil Field joint venture crude sales revenue stood at US$1.54 million at a realised oil price of US$59.75 per barrel (net).
In May 2021, it sold crude oil to BP and received payment of $1.3 million subsequent to the end of the quarter on 1 July 2021.
Further, tranche two of its placement shares will provide $8.2 million gross cash in August 2021.
Cliff Head Oil Field
During the quarter, TEG sold 25,850 barrels of crude oil, with a crude oil inventory of A$3.64 million representing 55,661 barrels of oil stored at BP Kwinana.
It produced and delivered 60,823 barrels during the quarter, with an average production during the quarter of 671 barrels of oil per day (bopd).
Production figures are lower due to scheduled routine field maintenance both onshore and offshore during May.
An overhaul was completed on well CH13H's surface electrical equipment.
During normal stable production in April and June, the average monthly production rates were 726 bopd and 713 bopd, respectively
Its lifting costs stood at US$27.52/bbl, down from the US$28.68/bbl in the previous quarter.
Operating profit in the June quarter came in at US$16.16/bbl.
BP Kwinana storage agreement
In April, Triangle Energy (Operations) Pty Ltd, (TEO), as operator of the Cliff Head Joint Venture and on behalf of the Cliff Head Joint Venture Participants, entered a binding agreement with BP Refinery (Kwinana) Pty Ltd (BP Kwinana) for the storage of crude oil produced at the Cliff Head asset.
It also agreed terms with BP Singapore Pte Ltd in a non-binding term sheet for a related offtake agreement.
BP Kwinana will provide access to and use of the BP Kwinana Facility to TEO to store its crude oil as well as services associated with the storage and lifting of the crude oil.
The initial term of the agreement will be one year from April 22, 2021, but a possible extension for one year or any other term mutually agreed by all parties can be discussed.
Under the non-binding offtake term sheet, BP Singapore will purchase the crude produced from the Cliff Head Oil Field, commingled with crude and condensate of other producers, on FOB BP Kwinana terms.
The initial term will be two years and will be aligned with the term of the storage agreement. The offtake will be for the entire production quantity, and pricing will be at a fixed discount to Brent.
The company will keep shareholders updated.
CH6 workover and CH11WI slickline intervention
Activities commenced on the CH6 Workover and CH11WI slickline intervention end June and in July, when TEG undertook two campaigns to increase production at Cliff Head.
The company is re-entering the well with a swathe of new equipment and enhanced capabilities and expects to bring about 120 barrels of oil per day online from CH6.
In conjunction with the CH6 Workover, Triangle Energy undertook and completed a slickline intervention on CH11WI.
It is expected that the reconfiguration of the injection zone of CH-11WI will contribute to increased oil recovery from Cliff Head.
Cliff Head Satellite drilling
Triangle, on behalf of the Cliff Head Joint Venture has commenced a farm-out campaign to introduce a new partner to assist with the drilling of the priority targets at West High/West Flank (Western Development), Mentelle Updip and SE Nose.
Successful wells on Western Development or SE Nose could be completed for immediate production and could have initial production rates of 3,000 – 4,000 bopd, providing a material uplift to the Cliff Head production if successful and extend asset life.
The online data room has been established with companies continuing to be engaged in the farmout process.
EP 437 JOA
Detailed planning for the Bookara 3D seismic survey continued during the quarter.
The survey design was finalised and the Joint Venture is working through the land access and approval processes with acquisition planned to follow the harvest season in December 2021/January 2022.
The company has also undertaken a technical review of L7 to evaluate the numerous oil shows and oil and gas exploration opportunities in the Lower Jurassic and Permian in advance of the Bookara 3D seismic acquisition.
The company completed a surface development study to evaluate development options for the infill development of Mt Horner field and the development of successful oil exploration opportunities.
The company commenced a farm-out campaign and has opened an online data room with several companies evaluating the opportunity.
Cliff Head Wind and Solar Project Joint Venture
In addition to and in parallel with the sale of the majority interest in WA-481-P, Triangle and Pilot have also agreed to form the Cliff Head Wind and Solar Project Joint Venture (Wind & Solar JV) with Pilot owning 80% and Triangle 20%, subject to agreeing the terms and the WA-481-P transaction completing.
The Wind & Solar JV will assess the feasibility of the development of an offshore wind and onshore wind and solar power project centred around the Cliff Head Offshore Oil Field production facilities, Cliff Head Alpha and the onshore Arrowsmith Separation and Processing Facilities.