The sale of onshore Perth Basin exploration licence EP 437 has moved a step closer with Triangle Energy (ASX: TEG) and Key Petroleum (ASX: KEY) agreeing to extend the cut-off date for the deal to 30 September.
Due to a number of delays, it has not been possible to complete the transaction and Triangle has agreed to make a non-refundable prepayment of $200,000.
In January, Key entered into a sale and purchase agreement and royalty deed with Triangle over its 50% participating interested in production licence L7, and its 86.94% in the exploration permit EP 437.
Since then, the two companies have been working to complete the necessary regulatory requirements so that the Western Australian Department of Mines, Industry Regulation and Safety, can transfer the interests to Triangle.
Pilot Energy (ASX: PGY) will, once the deal has been completed, hold the remaining 13.06% interest in EP 437.
The total payment to Key will be $600,000.
First well to be drilled by May
Triangle has agreed to assume all of Key’s ongoing work program commitments within EP 437, which requires the acquisition of 20sq km of 3D seismic and the drilling of one well by next May.
A second discretionary well is due by the end of the permit term on 23 May 2023.
The arrangement will also allow Triangle to expand the 3D work area to provide near complete coverage of the Bookara Shelf hydrocarbon fairway.
Triangle said in its most recent quarterly report that, in the three months to 30 June, it had been working on detailed planning for the Bookara seismic survey.
Land acquisition to follow harvest completion
Work then got under way on land access and approval processes with acquisition to follow the harvest finish in December or January.
Triangle is also a 27.67% shareholder in State Gas (ASX: GAS), a Queensland based company focussed on developing new gas supplies from its Reid’s Dome and Rolleston-West gas projects.
Reid’s Dome and Rolleston-West projects are described as “contiguous, enabling co-development of this ‘super’ gas region in the Bowen Basin in Central Queensland”.
Meanwhile, Key remains an active explorer and says it has a renewed focus “on maturing the east coast supply potential” from its Cooper-Eromanga Basin assets in Queensland.