On 31 October 2018, Triangle Energy (Global) Ltd (Triangle) reported that it has entered into a farm-in agreement with Key Petroleum Ltd (Key), to acquire a 50% participating interest in Production Licence L 07, located in the Perth Basin. The licence contains the depleted Horner oil field and is currently 100% owned and operated by Key. Key acquired 100% interest in L 07 on 6 July 2018 from AWE Ltd.    Under the farm-in agreement, which remains subject to regulatory approval and the consent of a landholder, Triangle will earn 50% interest after completing an extensive work programme and carrying Keyâs proportional costs of the programme. In return for carrying Keyâs upfront costs, Triangle will be entitled to 87.5% of production from the licence during the first two years of any commercial production, and 75% thereafter until the costs are recovered. Key shall maintain responsibility for decommissioning costs associated with the existing Mt Horner wells and associated surface facilities   The proposed work programme to be carried out under the new joint venture will include the workover of two of the existing Mt Horner wells in an attempt to restart oil production and a 3D seismic survey of at least 50 sq km. Two new wells are also proposed under the agreement after the acquisition of the survey.   L 07 covers the Mt Horner oil field which produced around 1.9 MMb oil between 1982 and 2011. The reservoir is deemed to be depleted based on the current recovery system and known reservoir structure and characteristic. However, Key reports that the existing infrastructure could make future developments feasible and bring discovered hydrocarbons to market quickly and also perhaps relate back to further development options for Mt Horner (subject to regulatory and government approvals). Triangle has also engaged technical advisers Tamarind Resources to review the prospectivity around Mt Horner. The companies believe there is a high potential for additional reserves at Mt Horner.  L 07 lies adjacent to the Senecio and Waitsia fields and also the Wye Knot Prospect for which Keyâs joint venture partners have approved the work programme and budget for the drilling of the Wye Knot 1 oil exploration well. The Wye Knot prospect is located in a down-dip location to the crestal Wye 1 well which discovered gas in 1996. Combined prospective resources of between 0.2 MMbo (low) and 6.1 MMbo (high) (1.4 MMbo best) within the Bookara and Arranoo sandstone members of the Lower Triassic Kockatea Shale Formation has been estimated by the operator.  L 07 was awarded on 14 May 1984 and is not scheduled to expire until 2027 after a successful renewal in 2006. Once the farm-in agreement between operator Key Petroleum and Triangle Energy is completed, participants will become: Key Petroleum (Australia) Pty Ltd (50% + operator) and a subsidiary company of Triangle Energy (Global) Ltd (50%). Triangle will have the option of operating the licence once the farm-in deal and associated work programmes are completed.
Australia (Greenough Shelf (Perth B.)) Wye 1