Triangle Energy Secures 100% Stake in Philippines Onshore Gas Exploration
Triangle Energy (Global) Limited has been awarded a 100% interest in the SC-82 onshore exploration contract in the Philippines’ Cagayan Basin, unlocking a large prospective gas area near existing infrastructure.
- Awarded 100% interest in SC-82 exploration contract on Luzon Island
- Historic Nassiping-2 gas discovery located close to local power grid
- Large 4,700 km² permit area with multiple prospective formations
- Seven-year phased work program with initial seismic data reprocessing
- Strong local gas demand and attractive fiscal terms in the Philippines
Triangle Energy’s Strategic Entry into the Philippines
Triangle Energy (Global) Limited (ASX – TEG) has secured a significant foothold in the Philippines with the award of Service Contract SC-82, covering a vast 4,700 square kilometre onshore area within the Cagayan Basin on Luzon Island. This 100% interest grant marks a strategic expansion for the Perth-based energy company into a region with growing energy needs and promising geological potential.
Historic Gas Discovery and Infrastructure Advantage
At the heart of the permit lies the Nassiping-2 well, drilled in 1984, which encountered substantial gas shows within platform and reefal carbonates. Although the well was not fully tested due to mechanical issues, it flowed gas to surface during a later test, indicating viable reservoir potential. Notably, Nassiping-2 is situated just 700 metres from the local power grid, offering a rare advantage for potential commercialisation. The nearby San Antonio gas field, which produced gas for local power generation for over a decade, provides a compelling analogue for the permit’s prospects.
Phased Work Program and Investment Outlook
The contract outlines a seven-year work commitment divided into five phases, beginning with a two-year initial phase focused on sourcing, digitising, and reprocessing existing seismic and well data at a cost of US$425,000. Subsequent discretionary phases include geological and geophysical studies, new seismic acquisition, and ultimately well planning and drilling, with an estimated total investment of nearly US$7.3 million if all phases proceed. Triangle retains the flexibility to accelerate this program and is actively seeking joint venture partners to share the exploration risk and capital requirements.
Market Context and Government Support
The Philippines currently relies on gas for approximately 30% of its power generation, predominantly sourced from the mature Malampaya gas field. With this asset approaching the end of its productive life, the country faces an increasing need to secure domestic gas supplies or turn to imports. Triangle’s entry is timely, supported by attractive fiscal terms and strong local demand. The award ceremony, officiated by President Marcos Junior and Energy Secretary Garin, was also endorsed by the Australian Government, highlighting the broader geopolitical and economic collaboration between Australia and the Philippines.
Looking Ahead
Triangle Energy’s move into the Philippines complements its existing portfolio, which includes offshore permits in the Bangsamoro Autonomous Region and producing assets in Australia and the UK. The company’s ability to leverage historic data, combined with modern seismic techniques and a clear phased approach, positions it well to unlock value in this underexplored basin. However, the ultimate commercial viability hinges on further data interpretation, potential drilling success, and securing partners to share the exploration journey.
Bottom Line?
Triangle’s Philippines entry opens a promising chapter, but key data and drilling results will define the path forward.
Questions in the middle?
- Will Triangle secure joint venture partners to advance costly drilling phases?
- How will updated seismic data reshape the understanding of reservoir potential in SC-82?
- What timeline can investors expect for potential commercial gas production?
