Triangle Energy (Global) Ltd’s joint venture with Pilot Energy (ASX:PGY) Ltd made more than A$21 million during May thanks to production at the Cliff Head Oil Field in WA’s Perth Basin.
Last month, the joint venture sold 139,992 barrels of oil at US$105.2 a barrel, while a further 8,287 ’tank bottom’ barrels were sold at US$75.7 each.
The sale marked the final lifting of oil from the joint venture’s Kwinana terminal to BP Singapore, and it netted US$15.36 million (A$21.34 million).
The May cash influx will be split between both JV partners - Triangle is set to receive A$16.8 million, while Pilot will walk away with A$4.53 million.
Taking advantage of high oil prices
Speaking to the May sales figures, Triangle managing director Conrad Todd said: “I am pleased to report to shareholders that the Cliff Head Joint Venture has completed a significant value oil sale, taking full advantage of the current high oil prices.
“This will allow the CHJV to progress our exploration and production activities at Cliff Head, including the upcoming workover of the CH 10 well.
“In addition, this cashflow will facilitate the 3D seismic and exploration of our L7 permit.”
Investors responded positively, sending TEG shares as much as 21.5% higher to A$0.017 with more than 83 million changing hands. Since the market close on May 16, they have risen from A$0.011.
What now?
The Cliff Head Oil Field is still in production and oil is being stored in the newly refurbished tanks at the joint venture’s Arrowsmith facilities.
Newly refurbished tanks at the Arrowsmith Stabilisation Plant will store the oil for now, and when they fill up, the oil will be trucked to the Port of Geraldton for loading into a tanker chartered by the CHJV.
Recently, Triangle raised A$3.5 million via an oversubscribed placement to fund production upgrades at the Cliff Head Oil Field and Arrowsmith Stabilisation Plant.