Triangle Energy Ltd Provides an Operations Update on its Cliff Head Oil Field Assets.
Tuesday 6 March 2018
Triangle’s Managing Director Mr Rob Towner said the Company had activated a comprehensive forward works program to upgrade reserves in the Cliff Head field. He said the Company was in the process of remodelling the subsurface Cliff Head reservoir to identify previously undrained sections of the field and that it had committed $5.5 million to a 2018 Asset Life Extension Program.
Mr Towner said Triangle had committed to a $5.5 million investment from revenue (available cash from revenue) to an “Asset Life Extension Program - 2018” for the ongoing upgrade of the Arrowsmith infrastructure.
He said the investment in infrastructure would support future expected increases in field production and enable the handling of regional oil including Xanadu (TP-15) and other potential re-entering of mature oil fields in the Perth Basin.
Triangle is also analysing historical well and field performance data and developing a new reservoir management plan to better optimise the production of identified crude oil in the field.
Mr Towner said management expected Cliff Head to produce 2.5 million barrels from the existing wells and hopes to identify additional resources which will be developed through side-tracking and drilling new wells.
Based on the initial re-modelling work being done on Cliff Head, the first such fundamental reservoir and field level modelling update to be completed in many years on the field, several strategies have been identified including:
- improved reservoir management and optimisation of water injection;
- continued operational cost reduction which will result in extended economic field life;
- completion of workovers and infill wells; and,
- near-field appraisal and low-risk exploration
Management believes these strategies could extend the life of Cliff Head and generate additional reserves. Further details will be provided over the coming months.
Mr Towner said Triangle had aggressively re-negotiated vendor contracts since taking over as Operator of Cliff Head in May 2017.