Triangle Energy (Global) Ltd and Key Petroleum Ltd (ASX:KEY) have agreed to further extend the cut-off date for the purchase by TEG of the remaining 50% participating interest in Production Licence L7(R1) onshore Perth Basin in Western Australia.
This Sale and Purchase Agreement and Royalty Deed also includes Key Petroleum and Key Midwest Pty Ltd’s combined 86.94% interest in Exploration Permit EP 437.
Extended to June 30
The parties have agreed to extend the proposed cut-off date for the agreement to June 30, 2022, but anticipate that completion will occur before this date.
A wholly-owned subsidiary of Triangle will hold the relevant interests acquired under the agreement.
Triangle and Key entered the agreement in late January 2021 and since then have been working to complete the necessary regulatory requirements in order that the Department of Mines, Industry Regulation and Safety can effect the transfer of Key’s interests in L7 and EP 437.
In final stages
There have been a number of unexpected delays, however, but completion work is now in the final stages.
The remaining $100,000 of the balance owing to Key will be paid by Triangle at completion.
Upon completion Triangle will hold 100% while Key will retain a 5% gross overriding royalty payable on production from L7 and EP 437.
In a recent company update, Triangle confirmed the technical prospectivity of Production Licence L7(R1) (Mt Horner) and said, “we view as having potential for very attractive oil and gas prospects”.
The company said it was working to acquire 3D seismic over the L7 and EP 437 permits in the first half of this year.