Triangle Energy (Global) Ltd is in discussions with Pilot Energy (ASX:PGY) Ltd to extend the completion date of their Sales and Purchase Deed (SPD) for the Cliff Head Joint Venture.
Triangle has agreed to sell its 78.75% interest in Cliff Head to Pilot, which currently holds the remaining 21.25% of the project.
The completion of the sale requires approval from The National Offshore Petroleum Titles Administrator (NOPTA).
To accommodate this requirement, Triangle and Pilot are negotiating an extension of the completion date beyond June 30, 2024.
This extension is intended to provide sufficient time to modify the SPD to align with NOPTA's requirements. Additionally, both companies are considering amendments to the SPD to facilitate the operational transition and sale of Cliff Head to Pilot.
The existing SPD outlines that Pilot is to pay Triangle up to A$15 million over the Carbon Capture and Storage (CCS) project life.
“The sale will allow Triangle to focus on its highly prospective conventional oil and gas activities, including the upcoming wells in the Perth Basin,” Triangle managing director Conrad Todd said.
“With the Booth-1 well expected to spud in late July, Triangle is on the verge of the most active period in the company’s recent history and we look forward to keeping our shareholders updated throughout this exciting period.”
Drilling at Booth-1 to start in July
Preparations by the L7 joint venture to drill the Booth-1 well in the North Perth Basin of Western Australia is progressing well, with the drilling expected to begin next month.
This work by the L7 JV, which comprises Triangle Energy, Strike Energy Ltd (ASX:STX) and New Zealand Oil and Gas Ltd, is nearing completion and all regulatory approvals have been received.
When we last reported, Triangle expected the Ventia 106 rig to be released by the current drilling operator in early July.
It would then take about 10 days to mobilise to the Booth-1 location with the spud of the well expected to occur mid to late July.