Triangle Energy Buys Cliff Head Oil Field Offshore Perth Basin for $2.4M
Triangle Energy (Global) Ltd., a junior exploration and production firm in Australia, purchased a 57.5 percent interest in Cliff Head oil field in permit WA-31-L in the Perth Basin, offshore Western Australia, from AWE Ltd. for an upfront acquisition cost of $2.4 million (AUD 3.21 million) plus a future royalty of $5 a barrel for oil sales above $70 a barrel.
The company will fund the acquistion, which is expected to be completed on or before June 30, from its current cash reserves, including a paid deposit of $0.6 million (AUD 0.8 million). The effective date for the deal has been backdated to Jan. 1.
"Oil prices are at the lowest that we have seen for many years but the price volatility in the commodity markets is a constant factor and periods of uncertainty can present short to medium term opportunity. The evaluation of oil and gas opportunities is a major ongoing endeavor for the Board and Management team of Triangle," Managing Director Robert Towner said in the press release.
"The acquisition of a majority stake in the Cliff Head project is a major milestone for Triangle. The low up-front acquisition cost and positive cashflow in a current weak oil price environment provides exceptional leverage to Triangle shareholders."
ROC Oil (WA) Pty Ltd., a unit of China's Fosun International Ltd.), is the field operator with a 42.5 percent stake. The field currently produces 1,300 barrels of oil per day, with 2P reserves estimated at 3.8 million barrels, excluding field life extension projects.
In a related development, Elixir Petroleum Ltd. expressed disappointment with the AWE-Triangle transaction on Cliff Head oil field, especially given earlier discussions it had held with Triangle for the latter to jointly acquire the upstream asset. "Elixir is currently reviewing its legal position with respect to those discussions," the company said in a press release.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension