Triangle Energy to buy Cliff Head interest from AWE

Triangle Energy (Global) Ltd., Perth, has emerged as the buyer of AWE Ltd.’d 57.5% working interest in the producing Cliff Head oil field in the offshore North Perth basin of Western Australia.

AWE had earlier made an agreement to sell the stake to Elixir Petroleum Ltd., also of Perth. However it appears that AWE tired of the delays in this arrangement with Elixir after several extensions of the date for completion of the acquisition last year and into the early part of this year.

Triangle said this week that the upfront acquisition cost was $3.214 million (Aus.) plus a future royalty of $5 (US)/bbl payable for oil sales in excess of $70 (US)/bbl (US). The effective date of the transaction is Jan. 1 and the acquisition has been funded from Triangle’s existing reserves.

Cliff Head lies 10 km offshore Western Australian in 15-20 m of water. The field was discovered by a joint venture led by Roc Oil Co. Ltd. in 2001. Roc Oil brought the field on stream in May 2006 and it has since produced about 15 million bbl.

The oil is produced via an unmanned offshore platform connected to the Arrowsmith onshore processing plant by twin 14-km production and injection pipelines.

Current production rate is 1,300 b/d, trucked from Arrowsmith to BP’s Kwinana refinery south of Perth. Remaining 2P reserves are estimated to be 3.8 million bbl.

Roc Oil, a subsidiary of Fosun International Ltd., has 42.5% interest and remains field operator.

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