Triangle gets drilling underway in Port Denison oil well after share price spike
Oil and gas explorer Triangle Energy has started drilling its West Australian Xanadu-1 oil well — a project that’s been flagged all year.
News last week that the drilling was brought forward to September 5 sent its shares up 42 per cent and earned a speeding ticket from the ASX.
Today (Wednesay) the explorer suspended its shares from the ASX pending an announcement.
Triangle (ASX:TEG) started drilling on September 4. The explorer’s shares had been trading at 10.5c before they were suspended on Wednesday morning.
The well is located in an area offshore from Port Denison, WA, but the drilling is being conducted onshore using directional drilling techniques. It’s expected to take 23 days.
The Xanadu prospect has an unrisked recoverable resource — that is, the total estimated amount of oil in the ground that could be brought to the surface — of 160 million barrels of oil.
“The [geological] structure is considered to be one of the largest untested oil prospects in the [Perth] Basin, with this same play resulting in four oilfield discoveries in the vicinity, namely Cliff Head, Hovea, Eremia and Jingemia,” the company said in a statement.
Triangle farmed in, or bought, 40 per cent of the operating rights to the Xanadu project from Norwest Energy last year.
A joint venture was finalised in May, where costs and working interests were established between the partners Transerv, Norwest Energy, 3C Group IC Limited and Triangle, giving the latter a 30 per cent interest.