- Triangle jointly (50/50) completes Share Purchase Agreement (SPA) with Royal Energy Pty Ltd to acquire the 42.5% balance of the Cliff Head Oil Field and associated production facilities from Roc Oil Company Limited.
- Triangle now holds a majority 78.75% of the Cliff Head oilfield and is the operator.
- Headline consideration paid under the SPA was US$3.750 million (US$1.875 million/AUD$2.5 million by Triangle).
- Effective date of the transaction was 1st January 2017. Cash flow benefit to Triangle during the period to completion totals approximately US$1.2 million.
- Triangle’s Cliff Head Oil Field contains the only offshore and operating onshore crude oil facilities including the Arrowsmith Stabilisation Plant and pipeline in the Perth Basin.
Triangle Energy (Global) Limited (Triangle or the Company) is pleased to announce the completion of the Share Purchase Agreement (SPA) with Roc Oil Company Limited (Roc) for the purchase of its 42.5% Participating Interest in and Operatorship of the Cliff Head Oil Field and associated production facilities (Cliff Head), located in the offshore Perth Basin, Western Australia. Triangle jointly (50/50) completed the SPA in partnership with Royal Energy Pty Ltd (Royal).
Under the SPA, the headline consideration was US$3.750 million (Triangle US$1.875 million), effective from 1 January 2017. Triangle has received a cash flow benefit of approximately US$1.2 million from that date to completion.
In completing the acquisition, Triangle and Royal have purchased the operating entity of Cliff Head, Roc Oil (WA) Pty Ltd, to be renamed Triangle Energy (Operations) Pty Ltd, which also comes with AU$0.669 million cash at bank (Triangle AU$0.527 million).
Director and Chief Financial Officer, Mr Darren Bromley said Triangle was pleased to have completed the acquisition and looks forward to working with stakeholders to deliver further operations efficiencies in the facility.
“The Company now controls 78.75% of the Cliff Head and we see a great opportunity to progress exploration of nearby appraisal targets and the larger offshore Perth Basin while maintaining strong cash flow from our current production.
“This acquisition, together with our 30% farm-in interest in the TP/15 Joint Venture with Norwest Energy NL (NWE) to drill the neighbouring 160 million bbl Xanadu-1 prospect, provides Triangle immediate exposure to exploration upside along with additional strong exploration targets within the Cliff Head Oil Field.” (see NWE’s ASX announcement dated 10 February 2017 for ASX Listing Rule 5.25.3 requirements).
Triangle’s 78.75% interest in Cliff Head has cost approximately AU$5.7 million. Estimated annual revenue from Cliff Head crude oil production is AU$30.4 million (Triangle AU$24.0 million) based on US$50/bbl and $0.75 AUD/USD exchange rate.
In June 2016 Triangle acquired a 57.5% interest in the Cliff Head oilfield from AWE Limited, an Australian oil and gas company.
The Cliff Head facilities are the only offshore and operating onshore infrastructure in the Perth Basin and are therefore important for any development in the surrounding area.
“Cliff Head’s onshore Arrowsmith Stabilisation Plant is the only operating crude oil plant in the Perth Basin and is vital infrastructure in the development of exploration success by any explorer in the area,” Mr Bromley said.
“The Cliff Head oilfield currently produces approximately 1300 bpd gross through the Arrowsmith facility, which has a processing capacity of up to 15 000 bpd, so is more than capable of processing third party crude.
“The acquisition of Cliff Head, in partnership with Royal, provides Triangle with a cash flow generating operation, strong production rates, exploration opportunities and the capacity to service third party crude in the highly prospective and underexplored Perth Basin,” Mr Bromley said.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/23052017/triangle-energy-completes-cliff-head-oilfield-acquisition/