Triangle to Increase Stake in Cliff Head Oil Field to 78.75% and Take Operational Control
Friday 31 March 2017
Australian companies Triangle Energy and Royal Energy have agreed to acquire Roc Oil's 42.5% operating interest in the producing Cliff Head oilfield offshore Western Australia.
The consideration is US$3.75 million and a deposit of US$200,000 has been paid by Triangle and Royal. Roc is a subsidiary of Chinese company Fosun.
The deal if completed will increase Triangle's stake in Cliff Head to 78.75%, with Royal holding 21.25%.
Triangle said today that Malaysia-based company Tamarind Resources will be appointed to operate the field on behalf of the joint venture.
Current production at Cliff Head is 1300 barrels per day of oil, and the expected field life is 10 years due to numerous exploration and extension opportunities, and through improved and enhanced recovery methods.
Triangle's managing director Robert Towner said stabilised oil prices had given Triangle the confidence to proceed with further exposure to Cliff Head.
“The acquisition...demonstrates Triangle’s commitment to the offshore Perth basin and provides greater financial flexibility for the company into 2017 and 2018," said Towner.
"It also allows Triangle to unlock the potential of nearby appraisal wells and exploration opportunities within the Perth basin. With the current oil price environment, coupled with the company’s production and infrastructure profile we provide exceptional leverage for renewed interest in the Australian oil and gas sector."
In the coming months, Triangle will be part of a joint venture that drills the large Xanadu oil prospect which, if successful, has the potential to leverage off Cliff Head's production infrastructure especially the Arrowsmith oil processing facility.