Triangle Energy Ltd. has taken a 78.75% interest and operatorship of offshore North Perth basin exploration permit WA-481-P adjacent to the company’s Cliff Head oil field following a farm-in deal with Pilot Energy Ltd., Sydney.
Pilot currently holds a 60% interest but is on the cusp of acquiring the remaining 40% from Key Petroleum Ltd. Completion of that acquisition will trigger the farm-out deal with Triangle.
In a complementary deal, Pilot will take a 21.25% interest in the Cliff Head production license WA-31-L by acquiring all the interests of Royal Energy Ltd. Triangle has the remaining 78.75% of Cliff Head along with operatorship.
Under the terms of the WA-481-P acquisition agreement Triangle will pay Pilot $300,000 (Aus). in cash and free carry Pilot for 100% of the completion of its share of the proposed Year 3 $5.5 (Aus.)-million minimum work program for the permit.
This includes 2000 km of 2D seismic reprocessing, 350 sq km of new 3D seismic acquisition, along with geological and geophysical studies. A number of prospects and leads exist in the permit within close proximity to Cliff Head production infrastructure.
Triangle has agreed that Pilot’s share of any oil and gas discoveries in WA-481-P will be developed and produced through Cliff Head facilities on the same basis as Triangle’s share.
Cliff Head facilities include the offshore platform and pipeline to the shore-based Arrowsmith separation and treatment plant.
As an adjunct to the formation of the new Triangle-Pilot JV, the two companies also have agreed to form a wind and solar project joint venture to assess feasibility of development of an offshore wind and onshore wind and solar power project centered around Cliff Head oil field production facilities.