Triangle Energy signed a share purchase agreement (SPA) with ROC Oil for operatorship and 42.5% interest in the Cliff Head oil field, in the Perth Basin, offshore Western Australia.
 |
|
The Cliff Head platform. Image from Triangle. |
Triangle has jointly (50/50) executed the SPA in partnership with Royal Energy. Under the SPA, the headline consideration is US$3.75 million (Triangle 50%). The partners have paid a deposit of $200,000. The effective date of the transaction is 1 January 2017. Settlement of the acquisition is expected to occur on or before 31 May 2017.
The deal gives Triangle 78.75% stake in Cliff Head, with Royal holding the remaining 21.25%.
Cliff Head is 10km off the coast of Dongara Western Australia at a water depth of 15-20m. The field covers 6sq km in the Commonwealth exploration permit WA-286-P and was the first commercial oil discovery developed in the offshore Perth Basin.
The development cost of the field was nearly $250 million (A$327 million) with first oil production commencing in May 2006. To date the field has produced over 15.27 MMbo and continues to produce at above originally forecast rates. Oil production from the Cliff Head is produced via an unmanned offshore platform connected to the Arrowsmith onshore processing plant by twin 14km production and injection pipelines.
“The Board sees great value in the Cliff Head oil field and looks forward to progressing exploration and production opportunities within the license area and the larger offshore Perth Basin,” says Triangle Managing Director Robert Towner. "Since Triangle acquired the 57.5% of the Cliff Head oil field in July 2016, oil prices have stabilized giving Triangle confidence to proceed with further exposure to this producing field. Also, during this time, the joint venture with ROC has successfully reduced operating costs and implemented significant operational efficiencies. With the acquisition, we will be able to further drive these efficiencies.”
Triangle says that the deal is expected to provide greater financial flexibility for the company into 2017 and 2018. It also allows Triangle to unlock the potential of near-by appraisal wells and exploration opportunities within the Perth Basin.
“In addition, our 30% farmin interest in the TP/15 joint venture with Norwest Energy NL (NSE) to drill the neighboring Xanadu-1 field 160 MMbl prospect, helps position Triangle as a lead player in the resurgence of interest and consolidation in the offshore Perth Basin," says Towner.
Subscribe
