Triangle Energy (Global) Ltd’s immediate focus is on progressing the interim offtake arrangements on behalf of the Cliff Head joint venture.
This work is progressing well and is the priority of the Triangle team.
Triangle is concentrating its energies on securing storage and export/offtake alternatives for the Cliff Head joint venture and its production profile is leveraged to the current and foreseeable strong oil prices.
The oil producer and explorer looks forward to providing further updates as the arrangements progress.
Triangle is highly leveraged to the recent upward revaluation in crude oil prices and is benefiting from the soft Australian dollar.
Offtake update
The Triangle management team has made considerable progress on behalf of the Cliff Head JV towards securing alternate storage and export/offtake strategies both domestically and internationally to ensure that the Cliff Head JV continues oil production and maintains continuous operations.
FEED
Triangle is well advanced in its investigation into the potential to establish a modern, modular renewable fuel refinery by leveraging the Cliff Head JV’s existing infrastructure.
The proposed 5,000-barrel-per-day facility would be suitable for bio-crude fuel stocks including crude product from the Cliff Head JV as well as crude and condensate from other producers in the mid-west of Western Australia.
A concept study and pre-front end engineering and design (FEED) study has been completed and the company is expected to complete the FEED stage during the second quarter of 2022.
Cliff Head Mark II
The current oil price provides strong support for the well planning for drilling of the Cliff Head satellite wells.
Three attractive drilling opportunities were developed from the previously completed Cliff Head Renewal Project - the South-East Nose development, West High/West Flank appraisal/development and Mentelle Updip exploration prospect.
Success with these opportunities could materially increase production and extend the life of the Cliff Head Oil Field.
A fourth opportunity, Catts prospect, is also technically mature but dependent on SE Nose drilling results.
The select phase work is complete and the well planning is moving into detailed design.
Drilling is targeted for the first half of 2023.
Wind and solar joint venture
Under an agreement with Pilot Energy (ASX:PGY) Ltd, Triangle agreed to acquire a 78.75% interest in offshore Perth Basin exploration permit WA-481-P, which is immediately adjacent to, and contiguous with, the Cliff Head Oil Field.
Pilot was the 60% owner and operator of WA-481-P and had entered into agreements with Key Petroleum Ltd (ASX:KEY) to acquire the remaining 40%.
Completion of the transaction between Pilot and Triangle was subject to completion of the agreement between Pilot and Key.
Further, Triangle and Pilot also agreed to form a joint venture to assess the feasibility of a large-scale wind and solar project that would use the Cliff Head joint venture infrastructure.
Triangle understands that as at today, the transfer from Key to Pilot has not been approved by the National Offshore Petroleum Titles Administrator.
Renewable energy strategy
With the termination of the sale and purchase agreement, the wind and solar joint venture with Pilot has also been terminated.
The wind and solar joint venture was Triangle’s first joint venture into assessing the feasibility of a renewables project making use of the Cliff Head joint venture infrastructure.
However, Triangle does not consider the termination of the wind and solar joint venture with Pilot is material to Triangle for numerous reasons.
Triangle, as an existing energy producer and infrastructure owner, believes it is in good stead to satisfy any regulatory requirements.
While Triangle’s strategy for the Cliff Head joint venture includes the consideration of renewable energy opportunities, this is by necessity a longer-term strategy that is subject to detailed regulatory processes and funding requirements.
Any transition into renewable energy by the Cliff Head joint venture may also require consultation with ASX by the joint venture participants as to the application of Chapter 11 of the ASX Listing Rules.
As and when Triangle elects to pursue future material opportunities in renewable energies, it will provide appropriate disclosure regarding the regulatory and funding risks applicable, and the grounds upon which it considers it has a reasonable basis to consider that such opportunity is likely to materialise.