New Zealand Oil & Gas (NZOG) has entered a binding term sheet agreement with Triangle Energy for a 25 per cent participating interest in two of its Perth Basin permits.
Once the agreement is completed, the joint venture for production licence L7 and exploration permit EP 437, in the northern Perth Basin, will comprise of Triangle with 50 per sent, Talon Energy with 25 per cent, and NZOG holding the remaining 25 per cent.
NZOG Chief Executive Andrew Jefferies said that the company has been looking for entry into the Perth Basin for some time.
“Our technical team identified L7 and EP 437 as high-potential areas for hosting significant gas fields and the new 3D seismic is the right tool to de-risk the deeper Early Permian gas reservoirs,” he said.
As part of the agreement, NZOG will fund the exploration activities consisting of two wells on L7 and one on EP 437, to be drilled in 2024.
Rehabilitation of works across both permits will be wholly funded by Triangle.
Conrad Todd, Triangle’s Managing Director, said that the company is looking forward to collaborating with NZOG and Talon to develop the northern Perth Basin.
“We believe we have a well-aligned Joint Venture who are keen to now progress our exploration plans to drill these exciting blocks in the Perth Basin,” he said.
“The exploration opportunities are in Australia, where we have production from our Mereenie, Palm Valley and Dingo fields… Triangle are Perth Basin experts whose scale, culture, values, and technical skillsets are an ideal fit with ours,” said Jefferies.
Completion of the agreement is subject to due diligence and regulatory approvals.
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