Triangle Energy Advances Becos-1 Drilling Amid $10.9M Cash Reserve

Financial Stability and Operational Readiness

Triangle Energy (ASX: TEG) closed December 2024 with a robust cash balance of $10.89 million, bolstered by a $2.4 million receipt from Pilot Energy related to the Cliff Head Oil Field. This financial footing supports the company’s active exploration and operational initiatives, including the imminent drilling of the Becos-1 well.

The Becos-1 well, situated within the EP 437 exploration permit in the Perth Basin, is a key focus for Triangle. Preparations are complete with the well pad constructed and all permits secured. The drilling contract has been awarded to Silver City Drilling, with the SC Rig 24 scheduled to commence spudding in late Q1 2025. The well targets a prospect with prospective oil resources estimated between 1 million and 21 million barrels, with a best estimate of 5 million barrels, highlighting significant upside potential.

Cliff Head Oil Field Transition and Sale Agreement

The Cliff Head Oil Field, where Triangle holds a 78.75% interest, has been suspended and is no longer producing. The company is in the process of divesting its interest to Pilot Energy under a revised Sale and Purchase Agreement. Pilot Energy has assumed responsibility for operating costs since mid-October 2024 and has made initial payments totaling $2.4 million. However, some scheduled payments remain outstanding, with Pilot’s recent capital raise potentially impacting the timeline for full settlement.

Exploration and Resource Potential

Triangle’s portfolio in the Perth Basin includes a 50% interest in both the L7 production licence and the adjacent EP 437 exploration permit. The company has updated prospective resource estimates, with combined oil prospects across these permits ranging from 17 million barrels (low estimate) to 64 million barrels (high estimate), and a best estimate of 33 million barrels. Gas prospects in L7 also show promising volumes, with a best estimate of 256 billion cubic feet gross.

Following recent oil discoveries in nearby reservoirs, Triangle is optimistic about the oil potential in the Dongara and Cattamarra formations within its permits. The decision on a third well to follow Becos-1 will consider the upcoming results, with a preference for the Mount Horner-2 Updip prospect.

International Ventures and New Opportunities

Beyond Australia, Triangle holds a 50% non-operated interest in UK licenses P2628 and P2650, which contain the Cragganmore gas field and other prospects. These licenses are undergoing seismic reprocessing and geological evaluations to refine resource estimates and development plans.

In the Philippines, Triangle has advanced applications for an onshore permit (NA-11) and two offshore permits (PDA-BP-2 and PDA-BP-3) in the Sulu Sea. These applications are in the final stages of government review, reflecting the company’s strategic push into Southeast Asia. The recent Philippine legislation promoting natural gas as a key energy source aligns well with Triangle’s exploration focus in the region.

Commitment to ESG and Corporate Governance

Triangle Energy continues to prioritize environmental, social, and governance (ESG) responsibilities. The company maintains comprehensive policies and risk registers to manage climate change impacts, environmental protection, community relations, and cultural heritage. Its safety record remains strong, with ongoing compliance to regulatory standards and zero reportable environmental incidents in the reporting period.

On the corporate front, Triangle reported payments to related parties totaling $161,000 during the quarter, reflecting standard remuneration for executive and non-executive directors. The company’s shareholder base remains concentrated, with the top 20 shareholders holding nearly 36% of issued capital.