The Board of Triangle Energy has announced that it has entered into a Farmout Agreement with Key Petroleum Limited (ASX:KEY) to acquire a 50% participating interest in Production Licence L7(R1). 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.
Triangle’s Managing Director Mr 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.
“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.
“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,” Mr Towner said.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/31102018/triangle-energy-signs-farmout-at-mt-horner/