Triangle Energy (Global) Ltd has secured 100% of two key onshore Perth Basin permits, L7 and EP 437, from Key Petroleum Ltd (ASX:KEY) (Key Petroleum Ltd (ASX:KEY)).
The company has snapped up the remaining 86.942% interest in permit EP 437 and the remaining 50% of L7 as well as buying back the L7 and EP 437 royalty from Key.
This finalises Triangle’s strategic buy-back of the highly prospective L7 and EP 437 permits.
Strategic acquisition
The purchase, in addition to the previously announced acquisition of a 13.058% stake from Pilot Energy (ASX:PGY) 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.
Managing director Conrad Todd said “I am pleased to report to shareholders that Triangle has completed the acquisition of a 100% interest in both the L7 and EP 437 permits.
Royalties add to value
“In addition to purchasing the interests in the permits, Triangle has bought back the 5% production royalty from Key, which makes the permits more valuable.”
The transaction costs for both purchases include the final A$100,000 due on the purchase of the interests and A$500,000 cash on completion plus A$500,000 of Triangle Energy shares to be issued on or before June 30, 2023.
Triangle Energy has already acquired the Bookara 3D seismic data across both permits, which is being processed and is due for delivery in the final quarter of 2022.
The data is expected to confirm the potential of the permits and should see a reduction in risk of the attractive portfolio of prospects and the leads previously mapped within the permits.
This will then be followed by the identification of well targets leading to drilling expected early 2024.