Triangle Energy’s Becos-1 Well Falls Short but Leaves Door Open in Perth Basin
Triangle Energy’s Becos-1 exploration well in the Perth Basin has been plugged and abandoned after failing to find hydrocarbons in economic quantities, yet the company remains optimistic about future prospects and well-funded for upcoming ventures.
- Becos-1 well reached 1,107m depth but found only immoveable gas
- Well drilled by EP 437 Joint Venture including Triangle Energy, Strike Energy, and Echelon Resources
- No economic hydrocarbons discovered; well plugged and abandoned
- Triangle Energy retains strong cash position and expects $18 million from Cliff Head asset sale
- Company optimistic about remaining prospectivity in Perth Basin and future exploration
Becos-1 Exploration Outcome
Triangle Energy (Global) Limited (ASX:TEG) has announced the conclusion of drilling at the Becos-1 exploration well in the Perth Basin, which reached a total measured depth of 1,107 metres. Despite thorough logging and analysis, the well failed to encounter hydrocarbons in economic quantities. Only a thin 2-metre zone of low porosity High Cliff sand showed immoveable gas, alongside low-grade gas indications in the targeted Bookara sandstone formation. As a result, the well has been plugged and abandoned.
Joint Venture and Operational Details
The Becos-1 well was drilled under the EP 437 Joint Venture, with Triangle Energy as operator holding a 50% interest, alongside Strike Energy Ltd (ASX:STX) and Echelon Resources Ltd (ASX:ECH), each holding 25%. The drilling campaign was conducted over 10 days using Silver City Drilling’s Rig 24. The primary target was the Bookara sandstone at a depth of approximately 789 metres, but the well ultimately extended deeper to 1,107 metres without commercial success.
Strategic Implications and Company Outlook
Triangle Energy’s Managing Director, Conrad Todd, acknowledged the complexities of the Perth Basin’s hydrocarbon system, referencing prior discoveries such as gas at Wye-1 and oil in the Mount Horner Oilfield. Despite the setback at Becos-1, Todd emphasized that significant prospectivity remains across the company’s north Perth Basin permits, including untested plays and areas. The company’s financial position remains robust, bolstered by a healthy cash balance and an anticipated $18 million inflow from the sale of the Cliff Head assets.
This financial strength positions Triangle Energy well to pursue further exploration and new ventures, maintaining its strategic focus on expanding and diversifying its portfolio. The company also holds interests in UK licences, indicating a broader geographic footprint beyond Australia.
Market and Sector Context
The outcome at Becos-1 underscores the inherent risks and uncertainties in oil and gas exploration, particularly in mature basins like Perth. While the failure to find economic hydrocarbons may temper near-term production growth expectations, Triangle Energy’s continued optimism and financial resilience suggest a measured approach to unlocking value from its existing and prospective assets.
Investors will be watching closely for upcoming exploration results and any strategic moves that Triangle Energy undertakes to capitalize on remaining opportunities in the Perth Basin and beyond.
Bottom Line?
Triangle Energy’s Becos-1 disappointment is a reminder of exploration risks, but the company’s strong balance sheet keeps future opportunities alive.
Questions in the middle?
- What are Triangle Energy’s next exploration targets and timelines in the Perth Basin?
- How will the $18 million from the Cliff Head asset sale be deployed to support growth?
- What impact will the Becos-1 result have on Triangle’s valuation and investor sentiment?
