Triangle Energy Ltd has completed the procurement of two key onshore Perth Basin permits, L7 and EP 437, from Key Petroleum Ltd (ASX:KEY).
With the acquisition now complete, the company now owns Key Petroleum (Australia) Pty Ltd and Key Midwest Pty Ltd.
Triangle had finalised the acquisition by securing the remaining 86.942% interest in permit EP 437 and the remaining 50% of permit L7 to bring two of Key’s subsidiaries under its wing.
In return, Key has received A$600,000 in cash and will receive A$500,000 of Triangle Energy shares, to be issued on or before June 30, 2023.
Strategic acquisition
The purchase, in addition to the previously announced acquisition of a 13.058% stake from Pilot Energy in EP 437, will result in Triangle owning a 100% interest in both permits, enhancing the value of these blocks to the company.
The timing coincides with the upcoming interpretation of the Bookara 3D seismic survey shot earlier in 2022 and completes an agreement originally signed in 2021.
Triangle has purchased the Key Petroleum subsidiaries which hold interests in the L7 and EP437 permits: Key Petroleum (Australia) Pty Ltd holds a 50% interest in the L7 permit and a 43.471% interest in Permit EP 437, and Key Midwest Pty Ltd holds a 43.471% interest in Permit EP 437.
Further to the acquisition of the subsidiary companies, Triangle Energy has purchased the 5% petroleum production royalty from Key, which increases the value of the permits to both Triangle and potential future partners.