PODCAST: Three points to Triangle Energy’s success 

Aussie oil producer holds key to supply security in WA

WESTERN Australian oil producer Triangle Energy (ASX:TEG) owns a massive footprint of prime acreage in the onshore and offshore Perth Basin. 

The company, led by well-known executive Rob Towner, has three key points of difference to other oil and gas explorers and producers in Australia. 

For a start, it already has a producing oil field offshore the MidWest of Western Australia called Cliff Head. 

Triangle Energy plans a low-cost redevelopment of the field, which will target three prospects known as Mentelle, Western Development, and South East Nose. 

At a cost of just $20 million, the wells will intersect three “drill ready” prospects to boost production from the field to between 4000 and 10,000 barrels of oil per day. 

The Cliff Head project contains 1.2 million barrels in proven reserves, but could hold as much as 9.3 million barrels of oil on a best prospective resource basis. 

Plans are already underway for the redevelopment and can be drilled from the already existing Cliff Head platform. 

The platform is in shallow waters just of Dongara and is connected to a plant called Arrowsmith by a 12-kilometre pipeline. 

Arrowsmith is the start of the refining process, separating water from crude and delivering oil which is then trucked to BP’s Kwinana terminal to the south. 

Oil is then stored at Kwinana and then exported to Singapore for international markets. 

The pipeline which connects Cliff Head to Arrowsmith is critical infrastructure, in that it could also be modified to include potential offshore wind connection to the WA grid. 

Meanwhile the Arrowsmith plant, which has a capacity to refine 15,000 barrels of oil equivalent per day, is a highly sought-after facility. 

With interest peaking in onshore oil exploration in Western Australia, the Arrowsmith plant could be used for third-party processing going forward. 

But this is just the tip of the iceberg for Triangle, because it holds a vast 10,000 square kilometres of exploration acreage where oil has been found before. 

It owns the Mt Horner L7 permit along with the adjacent EP 437 permit onshore. Triangle Energy will undertake 3D seismic surveys across the permits to unlock future discoveries. 

The Mt Horner project has already produced 1.8 million barrels of oil to date, but holds many exploration opportunities. 

Offshore again, Triangle Energy owns the WA-481-P licence, surrounding its Cliff Head project which is one of the largest underexplored permits in Australia. 

Triangle Energy has teamed up with fellow ASX-lister Pilot Energy to pursue both oil exploration and look to a offshore wind project in the future.

Triangle Energy - rejuvenating Perth Basin exploration

SATURN Oil & Gas is listed is on the Toronto Stock Exchange Venture (TSXV: SOIL) and the Frankfurt Stock Exchange (FSE: SMK). 

While 2020-2021 was a challenging time for the oil and gas industry generally, Saturn Oil turned lemons into… well... oil. 

It made a game changing acquisition this year, buying a massive parcel of land dubbed the Oxbow project in the southeast region of Saskatchewan, Canada. 

Saskatchewan is of course one of the two biggest oil producing provinces in Canada and feeds hungry domestic and international markets with light crude produced onshore. 

The deal saw Saturn Oil buy thousands of producing or soon-to-be-producing wells. In fact, now the deal is sealed, it will deliver approximately 6700 barrels of oil equivalent per day into the company’s balance sheet. 

This is a 2000% increase on its current production rate. Something you cannot laugh at all. 

At international benchmark prices, this is nothing but a windfall for the company which was only recently called a junior. 

Saturn Oil has now officially become one of the leading independent oil producers in the country, almost overnight, thanks to this acquisition. 

The Oxbow project is expected to generate between US$65 million to US$70 million in net revenue over the next 12 months alone. 

Saturn Oil already had a track record of developing land other companies had overlooked, or just not invested in. 

It’s this strategy which brings Saturn Oil into the sights of investors internationally, and one of the reasons why we’re covering this company in detail. 

“We’ve created value where others have missed it,” Saturn chief executive John Jeffery told Energy News Au. 

“Prior to Oxbow we’d never purchased land without a reserve booked on it, however. This acquisition gives us a major production base and serves as a cash cow for future projects.” 

The proof is certainly in the pudding, by our book. 

“Not only does Oxbow have significant upside… but at current oil prices, we’ll be able to pay off all debt in the next three years. 

The acquisition was well-received by investors when first announced. 

Saturn Oil went to market with a market cap of under $50 million. It raised $130 million in capital to buy Oxbow, which shows how bullish investors are. 

With steady cash flow, the company is now looking to invest in future production. This will involve both workovers and new wells.

Saturn Oil & Gas - a 2000% increase in oil production

Raewyn Caisley is a children's book author based in Western Australia. In this instalment of In Conversation with Paul-Alain van Lieshout, Raewyn offers listeners an insight into her personal life and profession. Ever thought about writing a book for kids? Well, it's not as easy as it sounds!

RaewynCaisley

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Saturn Oil & Gas - a 2000% increase in oil production

Energy News Au

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