Triangle Energy (Global) Ltd has reinstated its reserve estimates and contingent resources for the Cliff Head Oil Field, offshore Perth Basin in Western Australia.
The oil producer and explorer’s net 78.75% share of the asset’s 2P reserves is estimated at 810,000 stock tank barrels.
Originally, Triangle stated its reserves in June 2020 but withdrew its resources and reserves statement in November that year in light of BP’s intention to cease fuel production at its Kwinana Refinery.
Because TEG’s prospective and contingent resources don’t rely on the inherent economic metrics, they were restated in March this year.
Now, following an offtake agreement inked with BP Singapore earlier this month, Triangle believes it has sufficient grounds to attribute the reserves to the Cliff Head Oil Field and restate the reserves.
The company has detailed any changes to the contingent resources — outlined in the table below — across the Western Development, Cliff Head Field life Extension, CH10 HCA and CH11 Updip development opportunities.
Contingent resources
Triangle’s 2C contingent resources, current as of June 30, 2021, are estimated at 3.47 million stock tank barrels.
This represents a slight increase on the company’s 2C contingent resources in the previous year.
That’s because TEG has since assessed Cliff Head’s West Development opportunity and its impact on field life extension, as well as two new prospective opportunities, known as CH10 HCA and CH11 Updip.
Meanwhile, the contingent resources for the SE Nose and Far North targets were reported on March 15, 2021, and remain unchanged.
All of TEG’s contingent resources lie within Cliff Head production licence WA-31-L, which the company operates and owns a 78.75% equity stake.
Western Development
The Western Development opportunity represents a probable extension of the Cliff Head field to the west, as well as a bypassed oil opportunity on the West Flank property.
To capitalise on this opportunity, a detailed design project that considers a Western Development well has commenced.
Ultimately, however, the Western Development opportunity is contingent on a final investment decision to drill a Western Development well.
The contingent resources for the region replace those previously reported for West High and West Flank on March 15, 2021.
Cliff Head Field Life Extension
The Cliff Head Field Life Extension’s contingent resources, reported at the bottom of the second table, incorporate additional recovery from the existing Cliff Head development.
This field life extension is tied to the future execution of the Western Development and/or SE Nose appraisal/development wells, meaning it is contingent on either of these wells being successfully implemented.
These contingent resources will then convert to reserves once the wells enter production.
For now, the contingent resources have been updated from previous estimates after TEG re-evaluated the Western Development opportunity.
CH10 HCA
The CH10 HCA opportunity refers to the oil column in the High Cliff Sandstone reservoir and is interpreted as possibly bypassed by the existing development.
Moving ahead, Triangle is evaluating the potential to access these resources.
Ultimately, however, the CH10 HCA contingent resources are contingent on further reservoir studies, development studies, economic evaluation and an investment decision.
CH11 Updip
The CH11 Updiup opportunity refers to the updip potential of an oil column intersected in Cliff Head 11.
Overall, this opportunity is contingent on further development studies, economic evaluation and an investment decision.
The company’s prospective resources for WA-31-L were previously announced on October 29, 2020, and remain unchanged for June 30, 2021.