In which Triangle finally solves its problems and Fremont finds oil
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After almost a year of technical problems, Triangle Energy has finally got all five wells at its offshore Western Australian field producing again.
The company (ASX:TEG) has been plagued by pump problems and an oil spill at three of its five producing wells in the Cliff Head oil field since May last year.
The company says it’s now got that under control and has lifted production back up to 1000 barrels a day (bopd).
Oil prices are ticking up from their December nadir, with the US benchmark WTI hitting $US52.16 and the North Sea marker Brent touching a high of $US60.77.
Across the world from Triangle’s WA field is Fremont Petroleum (ASX:FPL)’s Niobrara formation where they’ve just found oil.
>>See Stockhead’s story on US shale companies here.
They told the market on Tuesday they struck oil and gas in the J.W. Powell #23-25 well and the thickness of the formation was 537 feet (154 metres) thick.
The total depth of the well was 6,072 feet (1850m) and in the Pierre shale in Colorado, where the company is using multistage fracks — hydraulic fracking multiple times on a single well.
Fracking is a method of cracking open non-porous shale and other rocks by forcing soapy liquids and grit down a well at high pressure. The liquid forces open fissure, and the grit holds them open to allow gas and oil to escape.
Chairman Guy Goudy told Stockhead last week they are solely focused on the Niobrara formation, but the problem is that they keep hitting gas.
He said they have an offtake agreement with an industrial partner for the gas on the verge of being signed however, which will allow them to monetise it rather than shutting wells in or flaring — burning off — the gas.