Triangle Energy Ltd. has acquired from Whitebark Energy Ltd. Whitebark’s 15% interest in offshore north Perth basin permit TP/15, which contains the Xanadu-1 oil discovery. The sale brings Triangle’s interest in the Xanadu permit up to 45%. Both companies are based in Perth.
The sale involves an upfront consideration of $3 million (Aus.) and $1 million in Triangle shares. There also is a $1-million appraisal outcome consideration. This will follow an independent report demonstrating that gross 2P plus 2C reserves exceed 8 million bbl of oil in aggregate within 4 years payable in cash or half cash and half the equivalent in Triangle shares.
There also will be a $1-million first oil bonus on first commercial production of oil exceeding 1,000 bbl of oil produced from within the TP/15 permit provided the oil is produced within 7 years.
The effective date of the transaction is set at Oct. 24.
Xanadu was found in September 2017 and sample analysis has confirmed that producing Cliff Head field, 14 km northwest, is an analogue with a shared oil generation source to the west of Xanadu.
Mapping post Xanadu-1 puts the structural culmination north of the discovery well and a 40 sq km 3D survey is scheduled to begin in the region in March 2019.
Whitebark said it will use the funds to invest in drilling programs and strategic acquisitions in Alberta, where it already has a working interest and where costs are lower and project approvals are faster than in Australia.
New interests in Xanadu will be operator Norwest Energy NL 25%, Triangle 45%, and 3C Group 30%.