Triangle Energy Faces Exploration Setback and Deferred Asset Sale Risk as Pilot Energy Recapitalises

Quarterly Financial and Operational Overview

Triangle Energy (Global) Limited closed the March 2025 quarter with a solid cash position of $9.85 million, maintaining a stable financial footing despite operational setbacks. The company’s cash flow reflected ongoing exploration and evaluation expenditures, alongside administrative and staff costs, while production expenditures for the Cliff Head Joint Venture (CHJV) were fully assumed by Pilot Energy following the divestment agreement.

Triangle’s strategic focus remains on its core assets in the Perth Basin, UK licenses, and emerging opportunities in Southeast Asia, balancing near-term financial discipline with long-term exploration potential.

Becos-1 Well Outcome and Exploration Prospects

The Becos-1 exploration well, spudded on 12 April 2025 in Exploration Permit EP 437, reached a total depth of 1107 meters by 18 April. Electric logging revealed minor gas shows in the Bookara and Arranoo sandstones but no moveable hydrocarbons. A thin, low-porosity gas-bearing sand in the High Cliff formation was identified but deemed immoveable. Consequently, the well was plugged and abandoned, marking a disappointing result for this particular target.

Despite this, Triangle remains optimistic about the broader prospectivity within the L7 permit, particularly the MH-28 prospect (formerly MH-2 Updip). This prospect targets Dongara oil reservoirs, supported by encouraging nearby discoveries such as North Erregulla Deep and Lockyer Deep. The company is preparing MH-28 for drilling, aiming to capitalize on the medium-risk oil potential estimated at a best-case 35 million barrels gross across L7 and EP 437 permits.

Cliff Head Asset Sale Deferred with Pilot Energy

Production at the Cliff Head Oil Field has been suspended, with Triangle’s 78.75% interest subject to a sale agreement with Pilot Energy Ltd (ASX: PGY). The companies executed a binding term sheet to defer the cash payment for the assets until 30 September 2026, allowing Pilot additional time to secure funding.

The sale price remains approximately A$5.6 million plus interest, with Triangle to receive a secured promissory note bearing 10% annual interest, maturing in September 2026. Pilot will continue to cover operating costs under the CHJV until completion. This arrangement introduces counterparty risk but provides Triangle with secured exposure to the asset’s value while Pilot undertakes recapitalisation efforts, recently evidenced by a successful $5 million placement and ASX reinstatement.

UK Licenses and New Ventures

Triangle holds 50% non-operated interests in UK licenses P2628 and P2650. P2628 includes the Cragganmore gas field with a best estimate of 527 Bcf of gas resources. Expenditure on these permits has been reduced pending clarity on UK hydrocarbon taxation, reflecting prudent capital management amid regulatory uncertainty.

In Southeast Asia, Triangle is advancing permit applications in the Philippines, including the onshore NA-11 block in the Cagayan Basin and offshore blocks PDA-BP-2 and PDA-BP-3 in the Sulu Sea. These applications are at the final stage awaiting presidential approval. The Philippines government’s recent legislation promoting natural gas as a key energy source aligns well with Triangle’s strategic interests in the region.

Environmental, Social, and Governance Commitment

Triangle continues to uphold robust ESG standards, maintaining compliance with environmental plans and safety cases. The company operates with a comprehensive Environmental and Social Risk Register, addressing climate change, environmental impact, community relations, cultural heritage, and occupational health and safety. No reportable environmental incidents were recorded during the quarter, underscoring Triangle’s commitment to responsible operations.

Outlook and Strategic Focus

While the Becos-1 well outcome was a setback, Triangle’s portfolio of prospective resources in the Perth Basin remains substantial, with ongoing preparations for further drilling at MH-28. The deferred Cliff Head sale terms provide financial security while Pilot Energy stabilizes its position. Triangle’s active pursuit of new ventures in the Philippines and measured approach to UK assets position the company for diversified growth opportunities.