Prospective OIIP volumes in near field exploration prospects at Cliff Head

Transcription

1 ASX Annuncement 10 July 2018 ASX:TEG Prspective OIIP vlumes in near field explratin prspects at Cliff Head HIGHLIGHTS Triangle s static mdel includes seven prspective targets acrss fur near field explratin areas in Cliff Head, nt including the knwn Mentelle prspect This mdel defines prspective OIIP in the near field explratin areas Generatin f a near field explratin prgram t test these prspects nw underway; prgram t be executed in 2019 Triangle Energy (Glbal) Ltd (ASX:TEG) (Triangle, the Cmpany) is pleased t annunce that the recently cmpleted Static Mdel reveals up t 29 millin barrels (unrisked, best estimate, evaluatin date 2 July 2018) f prspective il initially-in-place (OIIP), representing 10.2 millin barrels f prspective resurce in near field explratin targets within the Cliff Head Oil Field (Cliff Head) licence area, lcated in the Perth Basin. Cautinary statement The disclsure f prspective il initially-in-place in this annuncement is slely based n the Cmpany's prspective resurce estimate detailed belw. It is nt based n any estimate f petrleum reserves r cntingent resurces. The prspective resurces have nt been adjusted fr risk. Reservir Area Lw Estimate Best Estimate High Estimate Dngara Sandstne Irwin River Cal Measures A1: NFE West A1: NFE West A2: NFE Suth A3: NFE Suth East A4: NFE CH TOTAL The estimated quantities f petrleum that may ptentially be recvered by the applicatin f a future develpment prject relate t undiscvered accumulatins. These estimates have bth an assciated risk f discvery and a risk f develpment. Further explratin appraisal and evaluatin is required t determine the existence f a signficant quantity f ptentially mveable hydrcarbns.

2 These near field prspects are lcated in clse prximity t Cliff Head s discvered, prducing reservirs. The develpment f these vlumes wuld therefre likely take advantage f existing pipelines and infrastructure as ppsed t requiring a cstly installatin f new infrastructure. Prspective OIIP vlumes are in additin t OIIP in the discvered, already prducing Cliff Head reservirs. It is intended that OIIP in these discvered reservirs, alng with assciated reserve and cntingent resurce values, will be reprted nce dynamic mdelling is cmplete later in Q Triangle s Managing Directr, Mr Rb Twner, said that Triangle s full field re-mdelling and subsurface re-interpretatin included remapping and gelgical mdelling extended t cver fur recgnised near field explratin areas: the NFE West (A1), Suth (A2), Suth East (A3) and CH5 (A4) areas (see Figure 1). A1: NFE West CH Field (discvered) A3: NFE SE A2: NFE Suth A4: NFE CH5 Figure 1: Field blck utline, red ut line highlighting Near Field Explratin areas. Field cntains already discvered (prducing) reservirs The static mdel shws that, in additin t OIIP vlumes and ptential t recver further resurces and reserves frm ur already discvered and prducing reservirs there is prspective OIIP f up t 29 millin barrels in seven targets acrss the fur near field explratin areas. Fr an assumed recvery factr up t 35%, this culd result in a (unrisked) recverable vlume f 10.2 millin barrels frm these near field prspects. Mr Twner said the latest result frm the static mdel cmpletes the picture n what the future f Cliff Head culd lk like. In additin t the immediate prductin enhancement pprtunities and a ptential develpment prject in the Main Cliff Head discvered field, as utlined in an annuncement released n 2nd July 2018, the static mdel defines a near field explratin ptential that culd lead t a multi-phased field develpment prgram, ptentially recvering a further 10.2 millin barrels (unrisked, best estimate) and extending field life int the 2030 s and beynd.

3 Table 1 summarises an assessment f the chance f discvery and develpment assciated with these prspects Reservir Chance f success Dngara Sandstne 13.3% Irwin River Cal Measures 33.3% Table 1: Assessment f the chance f discvery and develpment Mr Twner said that building a fresh static mdel has allwed Triangle t take an all-inclusive view f the field which has ensured gelgical cnsistency acrss bth the discvered (prducing) reservirs and the ther prspective, cnnected areas. We have nw mdelled the Cliff Head area as a whle. Where previus static mdels were incrementally updated as drilling and wrkver prgrams prgressed, Triangle s current mdel takes a hlistic apprach with a cmpletely refreshed petrphysical evaluatin. This methd has resulted in a cnsistent set f gelgical characteristics, including a single fault mdel, fr the prducing field and near field explratin targets. We can nw see the seven prspects directly alngside ur discvered il in the discvered, currently prducing, Cliff Head areas (Figure 2). A1(b) A1(a) A3(a) Discvered reservirs Prspect Area A1(a) NFE West A1(b) NFE West A4 A2(a) NFE Suth A2(a) A2(b) A3(b) A2(b) A3(a) A3(b) A4 NFE Suth NFE Suth East NFE Suth East NFE CH5 Figure 2: Perspective view f Cliff Head area shwing discvered reservirs and near field explratin prspects - red areas highlight high cncentratin f il Mr Twner said that because f this hlistic apprach, prspective vlumes are, as expected, cnsiderably higher than thse identified by the previus peratr (see Figure 3). Triangle s apprach gives us a high degree f cnfidence in ur prspect evaluatin. Triangle can nw see a prspective vlume f 29 millin barrels against a previus estimate f 15.7 millin barrels which is ver an 80% increase.

4 Prspective OIIP / Millin bbls Previus Operatr TEG NFE West NFE Suth East NFE CH5 NFE Suth Figure 3: Cmparisn f Triangle prspective vlumes per near field explratin area (Rc Cliff Head Area Subsurface verview, 28th Octber 2014; deterministic OIIP fr prspects based n 2010 interpretatin) With this result, Mr Twner said the Triangle team wuld nw generate a full near field explratin prgram t test and cnfirm the vlumes. The near field explratin prgram will be executed in cnjunctin with Cliff Head develpment activity, where an integrated Cliff Head develpment-explratin ffshre prgram is expected t be put in place fr In accrdance with the ASX Listing Rules, the Cmpany cnfirms the fllwing: The estimates in this annuncement are reprted as at 2 July 2018 (Listing Rule ). The disclsure f ttal petrleum initially in place has been reprted with the necessary prximate disclsures (Listing Rule ). The prspective resurce estimate has been reprted accrding t the Cmpany's ecnmic interest in the resurce under prductin-sharing cntracts and risked-service cntracts (100%) and is reprted net f any ryalties (Listing Rule ); The deterministic methd was used t prepare the prspective resurces estimate (Listing Rule ). The types f permits r licences held by the Cmpany in respect f the prspective resurce estimate is the WA-31-L prductin licence ver the Cliff Head il field (Listing Rule ). A brief descriptin f the basis n which the prspective resurces are estimated and the further explratin activities planned, are cntained in the bdy f this annuncement (Listing Rule ); The Cmpany's assessment f the chance f discvery and the chance f develpment assciated with the prspective resurce estimate is (Listing Rule ); and The Cmpany has reprted unrisked estimates (Listing Rule ).

5 Qualified Petrleum Reserves and Resurces Evaluatr Statement In accrdance with ASX Listing Rules, infrmatin in this reprt that relates t prspective resurces has been reviewed and signed ff by Mr James Tarltn (Tamarind Management Sdn. Bhd. Directr). Infrmatin that relates t the prspective resurces is based n and fairly represents, infrmatin and supprting dcumentatin prepared by r under the supervisin f Mr Tarltn. He has prvided his written cnsent t the frm and cntext in which the infrmatin that relates t the reserves presented. Mr Tarltn's qualificatins include: Bachelr f Applied Science (Hnurs) frm Queen's University at Kingstn Ontari Canada. He has 34 years f perating cmpany experience develped thrugh drilling, prductin and reservir engineering befre transitining t asset management in Canada, the Nrth Sea and Suth East Asia. He is a member f the Sciety f Petrleum Engineers in Malaysia and he is als a registered prfessinal engineer with the Assciatin f Prfessinal Engineers and Gescientists f Alberta (APEGA). He cnsents t that infrmatin in the frm and cntext in which it appears. ENDS Fr further infrmatin: Rb Twner Managing Directr Darren Brmley Executive Directr / CFO / COO admin@ www. Media enquiries: Margie Livingstn, Ignite Cmmunicatins Abut Triangle Energy (Glbal) Ltd Triangle Energy (Glbal) Ltd is an ASX listed (ASX:TEG) il prducer and explrer based in Perth, Western Australia. The Cmpany has a 78.75% interest in, and is Operatr f, the prducing Cliff Head Oil Field, which includes the Arrwsmith Stabilisatin Plant, and a 30% share f the Xanadu-1 Jint Venture, bth lcated in the Perth Basin. Triangle als has a substantial equity interest in State Gas Ltd (ASX:GAS), which has a 60% perating interest in the Reids Dme prductin licence (PL 231) in Queensland. The Cmpany cntinues t assess acquisitin prspects t expand its prtfli f assets.