Triangle Energy’s Becos-1 Well Abandoned; JV Partners Exit, Ownership Rises to 100%

Exploration Update and JV Changes

Triangle Energy (Global) Limited’s latest quarterly report outlines a period of significant transition and recalibration. The company drilled the Becos-1 well in the EP 437 permit in April 2025, reaching a total depth of 1,107 metres. Electric logging revealed only minor gas shows in the primary Bookara sandstone and a low-permeability gas-bearing sand in the High Cliff formation, leading to the well being plugged and abandoned. While this result was not commercially encouraging, Triangle remains optimistic about the broader prospectivity of the L7 permit, particularly the MH-28 prospect, which targets oil in the Dongara reservoir and deeper formations.

In a notable development, joint venture partners Strike Energy Limited and Echelon Resources Limited have formally withdrawn from the L7 and EP 437 joint ventures. This move leaves Triangle as the sole operator and owner of these permits, increasing its stake to 100%. The company is currently reviewing its position regarding these withdrawals and the associated farm-in obligations, signaling a potential shift in operational strategy and risk exposure.

Cliff Head Asset Sale and Carbon Capture Transition

Triangle has also finalized the sale of its onshore Cliff Head assets, including the Arrowsmith freehold land and associated infrastructure, to Pilot Energy Ltd. The transaction is structured as a secured promissory note valued at $5.6 million plus interest, maturing in September 2026. Pilot Energy will assume 100% of ongoing operating costs as it transitions the site towards a carbon capture and storage (CCS) project. This strategic divestment aligns with broader energy transition trends and allows Triangle to focus capital and management resources on exploration and new ventures.

New Ventures and International Focus

Looking beyond Australia, Triangle is actively pursuing new opportunities in Southeast Asia and Europe. The company has submitted applications for an onshore permit in the Philippines’ Cagayan Basin and two offshore permits in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). These applications are currently under final review by the Philippine government, which has recently enacted legislation promoting natural gas development as a key energy source. In the UK, Triangle holds a 50% interest in licenses P2628 and P2650, which are in care and maintenance pending more favorable regulatory conditions. The company continues low-cost technical evaluations to enhance asset value and prepare for potential future development.

Financial Position and Operational Discipline

Triangle ended the quarter with a solid cash balance of $7.62 million, supported by Pilot Energy covering operating costs at Cliff Head and focused exploration expenditure on the Becos-1 well. The company reported no production expenditure during the quarter and maintained a strong safety record with zero lost time incidents. Administrative and staff costs were tightly managed, reflecting a disciplined approach amid operational changes. Triangle’s management emphasizes environmental and social governance, maintaining compliance with all relevant regulations and proactively engaging with stakeholders, including Traditional Owners.

Despite the setbacks at Becos-1 and the JV partner withdrawals, Triangle’s portfolio of prospects in the Perth Basin retains significant prospective resources, with probabilistic estimates suggesting up to 71 million barrels of oil and substantial gas volumes. The company’s strategic focus on high-potential prospects like MH-28 and its expanding footprint in emerging markets position it for potential value creation in the medium term.