Triangle Energy (Global) Ltd. has agreed to acquire a 50% interest in production license PL L7 from Key Petroleum Ltd. as well as affiliate Key Midwest Pty Ltd.’s combined 86.94% interest in exploration permit EP 437, both onshore Perth basin, Australia. A wholly owned Triangle subsidiary will hold the relevant interests.
Triangle will assume all of Key’s ongoing work program commitments within EP 437, which requires acquisition of 20 sq km of 3D seismic and the drilling of one well prior to the end of the permit term’s 3rd year on May 27, 2022, with a second discretionary well due by the end of the permit term on May 22, 2023.
A larger 3D survey will be acquired across the area which will also tie into the existing Irwin 3D survey to the south and extend into EP 437 to the west. The primary aim is to provide a near complete coverage of the Bookara Shelf hydrocarbon fairway.
Triangle will pay to Key a cash consideration of $600,000 (Aus.), any outstanding cash calls in respect of L7 based on agreed work program and budget plus a 5% gross overriding royalty payable on production from L7 and EP 437.
At completion of the agreement, the existing farmout agreement between Key and Triangle in relation to L7 will terminate and the parties will release each other from all claims and liabilities with respect to L7.