Triangle Energy Receives Green Light to Drill Becos-1 Well
TEG (TEG) Share Update September 2024 Sunday 29th
Triangle Energy Secures Environmental Plan for Becos-1 Well
Triangle Energy Global Ltd (ASX:TEG) has announced that it has secured the Environmental Plan (EP) approval for its Becos-1 well, paving the way for drilling operations targeting significant oil reserves.
Instant Summary:
- Environmental Plan (EP) for Becos-1 well approved.
- Stakeholder approvals secured.
- Rig tenders under evaluation.
- Primary target: oil in Bookara and Arranoo reservoirs.
- Estimated prospective resources: 1 MMbbl (low) to 21 MMbbl (high), with a best estimate of 5 MMbbl.
Approval and Next Steps
Triangle Energy Global Ltd (ASX:TEG), in partnership with Strike Energy Ltd (ASX:STX) and Echelon Resources Ltd (ASX:ECH), has received approval for the Environmental Plan (EP) to drill the Becos-1 well. This approval is a significant milestone, clearing the path for drilling operations once a rig is available. Discussions with potential rig providers are ongoing, and a decision is expected within the next few weeks.
The primary target for the Becos-1 well is oil in the Bookara and Arranoo reservoirs. These reservoirs showed promising oil and gas signs in the Wye-1 well, drilled in 1996. Gross Prospective Resources for these reservoirs range from a low estimate of 1 million barrels of oil (MMbbl) to a high estimate of 21 MMbbl, with a best estimate of 5 MMbbl recoverable.
Geological Context
The Becos prospect is located in the EP 437 and the western part of the L7 permit area. The area has been mapped using the Bookara 3D seismic survey, which highlights the faults and structures of the Bookara Shelf. Notably, the Allanooka Fault, trending east-west at the southern edge of the map, is of particular interest. Triangle Energy has determined that oil in the Mt Horner oil field and gas tested in the Wye-1 well likely migrated from the deeper basin section south of the Allanooka Fault.
Further, the seismic data shows a 4-way dip closure with a larger dip and fault-closed upside at the Becos prospect. The geological chance of success (GPOS) for the Becos prospect is estimated at 25%.
Additional Prospects
In addition to the Becos prospect, another oil prospect named Wye Knot has been identified downdip from the proven gas in the Wye-1 well. The Wye Knot prospect is estimated to have Best Estimate Prospective Resources of 2 MMbbl.
Triangle Energy's Managing Director, Conrad Todd, expressed optimism about the upcoming drilling operations, stating, 'We are looking forward to drilling the attractive Becos-1 in the North Perth Basin. The Joint Venture will update the market as soon as a rig contract has been concluded with further information on the well.'
The approval of the Environmental Plan for the Becos-1 well is a positive development for Triangle Energy. The potential to uncover significant oil reserves could boost the company's stock value. However, the geological chance of success is estimated at 25%, indicating a moderate level of risk. Investors should consider the potential rewards against the inherent risks of exploratory drilling.
Investor Reaction:
Analysts are likely to view this announcement positively, given the significant prospective resources and the strategic importance of the North Perth Basin. However, the moderate geological chance of success may temper some enthusiasm. Investors will be closely watching the progress of rig tender evaluations and subsequent drilling operations.
Conclusion:
Triangle Energy's recent approval to drill the Becos-1 well marks a significant step forward in its exploration efforts. Investors should stay informed about the upcoming rig contract decisions and drilling updates. The potential for substantial oil discoveries could have a meaningful impact on the company's future prospects.