Triangle Energy (Global) has executed a 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, in offshore Perth Basin, Western Australia.
Triangle has jointly (50/50) executed the SPA in partnership with Royal Energy.
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After completion of this transaction, Triangle will hold a majority 78.75% stake in the Cliff Head Oil Field.
Triangle Energy managing director Robert Towner said: "Since Triangle acquired the 57.5% of the Cliff Head Oil Field in July 2016, oil prices have stabilised 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."
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By GlobalData“The acquisition of ROC’s 42.5% interest and operatorship of the Cliff Head Oil Field with Royal demonstrates Triangle’s commitment to the offshore Perth Basin and provides 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.
“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.”
Under the SPA, the headline consideration is $3.75m, with $1.875 being by Triangle. A deposit of $200,000 has been paid by Triangle and Royal.
The effective date of the deal is 1 January and settlement of the deal is expected by 31 May.
Triangle has entered a convertible loan agreement with Tamarind Classic Resources for $1.215m for a period of 12 months at an interest rate of 10%.
The partners have also decided to appoint Tamarind as the operator of the Cliff Head Oil Field on behalf of the partners.
The Cliff Head Oil Field is situated approximately 10km off the coast of Dongara in Western Australia. The field includes an area of 6km² in the Commonwealth exploration permit WA-286-P.
The project started producing in May 2006 and has produced more than 15.27 million barrels of oil until now.
Currently, the Cliff Head Oil Field has a production of 1,300bopd.
