Experienced Perth Basin oil producer Triangle Energy (Global) (ASX: TEG) has announced a return to production for the CH-6 well within the Cliff Head oilfield, 11 kilometres off the coast of Western Australia and some 270km north of Perth.
The announcement was made on behalf of the Cliff Head joint venture in which Triangle has a 78.75% stake with Pilot Energy (ASX: PGY) holding the remaining 21.25%.
CH-6 and the neighbouring CH-11WI well were subject to a workover program as part of an electric submersible pump replacement which involved the installation of a new pump in a more technically and cost-effective configuration than previously adopted.
Triangle managing director Robert Towner said the joint campaign provided an opportunity to evaluate the condition of downhole completion and well bore equipment to determine well integrity and corrosion levels.
“Well integrity management is a priority at Cliff Head and the recovered equipment from CH-6 and CH-11WI showed no visible evidence of corrosion or physical degradation,” he said.
“This is an excellent outcome considering the years since this equipment was installed and supports our plans to continue to extend the operating life of the facility.”
Mr Towner confirmed all of the technical and well integrity expectations of the program were met and the CH-6 well was handed over earlier this week.
Performance testing and verification is currently underway with production expected to stabilise at approximately 120 barrels of oil per day, boosting total production from the Cliff Head field to approximately 850bopd.
Cliff Head joint venture
Triangle and Pilot entered into the Cliff Head joint venture last November.
The venture comprises exploration permit WA-481-P, which is contiguous with Triangle’s owned and operated Cliff Head oilfield and was previously owned by Pilot and Key Petroleum (ASX: KEY).
Triangle entered into a binding agreement with Pilot to acquire a 78.75% interest plus operator rights in the permit, with Pilot retaining a 21.25% non-operated working interest.
Under the terms of the agreement, Triangle will pay Pilot $300,000 on completion of a three-year work program.
The two parties also agreed to form the Cliff Head Wind and Solar joint venture with Pilot holding an 80% stake as owner and operator and Triangle retaining 20%.
On the formation of the Cliff Head joint venture, Mr Towner said the deal would create opportunities for Triangle to leverage its Perth Basin operations and infrastructure to unlock further value in the underexplored area.
“Our exploration and development in the offshore Perth Basin is now aligned [and we have] developed an excellent understanding of the WA-481-P permit, having recently completed subsurface studies of the area through the Cliff Head renewal project,” he said.
“We now have a significant offshore portfolio encompassing WA-31-L (Cliff Head oilfield), TP-15 (Xanadu discovery) and WA-481-P, making us the dominant operator in the offshore Perth Basin.”