Australian oil and gas production and exploration company Triangle Energy (TEG) has entered a farmout deal with fellow oil junior Key Petroleum to acquire a 50% stake in the Mt Horner oilfield in Western Australia’s Perth Basin.
"The Board of TEG is pleased to announce that it has entered into a Farmout Agreement with Key Petroleum to acquire a 50% participating interest in Production Licence L7(R1) (Acquisition). A wholly owned subsidiary of Triangle will hold the relevant interest earnt under the Farmout Agreement and Triangle is providing a guarantee of that subsidiary’s obligations under the Farmout Agreement," said a press statement.
Triangle’s Managing Director Rob Towner said the farmin to the Mt Horner L7 Production Licence (L7) further demonstrates the Company’s strategy of growth in the Perth Basin.
“Working with our technical advisers, Tamarind Resources Pte Ltd, Triangle has been able to identify the potential for additional reserves at Mt Horner. The exploration and redevelopment potential of L7 fits perfectly with Triangle’s strategy of exploration for additional reserves within already proven oil fields, like our current strategy at the Cliff Head Oil Field," he said.
“Triangle considers there is potential for significant contingent and prospective resources on the L7 permit and we look forward to working with Key to advance the L7 Mount Horner development and ultimately provide benefits to our shareholders," Rob added.
“In addition, any extracted oil could potentially be processed at Triangle’s onshore Arrowsmith Processing Plant which could add to the economic viability of the L7 development,” Rob said.
The Mt Horner licence overlies the Allanooka Terrace in the North Perth Basin and is adjacent to the prolific Dandaragan Trough, and south of Geraldton, located about five hours drive north of Perth.