Triangle placement and share purchase plan to fund Cliff Head work

Triangle Energy (Global) Ltd., Perth, has raised $2.2 million (Aus.) through a share placement and intends to raise a further $1 million via a share purchase plan to current shareholders.

The total $3.2 million is earmarked for a program of workovers at Cliff Head oil field offshore North Perth basin in Western Australia to increase field production by 400 b/d. If successful, Cliff Head will produce 1,000 b/d.

Managing director Robert Towner said the workover program will begin in September and focus on the Cliff Head-6 and -7 wells, bringing them back online after they were shut in during June.

Any excess funds will be used for a new exploration drilling program in three nearby prospects—South East Nose, West High, and Mentelle Updip.

South East Nose is a low-relief structure up-dip from the original Cliff Head-1 discovery wildcat that could hold contingent resources of about 1 million bbl of oil.

West High is seen as a potential western extension of Cliff Head with contingent resources of 0.95 million bbl of oil. It could be reached by a deviated appraisal well from the existing platform.

Mentelle Updip, also close to the main field, is the largest of the new prospects with a potential contingent resource of up to 5 million bbl of oil.

The three wells are part of Triangle’s Cliff Head renewal project aimed at extending the life of the field and the onshore Arrowsmith processing plant.

Cliff Head is about 270 km north of Perth and 12 km off the coast of Dongara in production license WA-31-L in a water depth of 15-20 m.

Oil is produced via five electrical submersible pump production wells, with produced water reinjected into three injection wells at the offshore platform. The platform is connected to the onshore 15,000-b/d capacity Arrowsmith stabilisation plant by twin 14 km production and injection pipelines. Oil is then trucked to BP at its Kwinana refinery south of Perth.

Triangle is operator with 78.75% interest. Royal Energy, Sydney, holds the remaining 21.25%.