Triangle Energy Secures Two Offshore Philippine Service Contracts with 470 Bcf Gas Potential

Strategic Expansion into the Sulu Sea

Triangle Energy (Global) Limited (ASX – TEG) has announced a significant milestone with the award of two offshore Service Contracts; SC-80 and SC-81; in the Bangsamoro Autonomous Region of Muslim Mindanao (BARMM), Philippines. These contracts cover blocks in the Sandakan Basin, a part of the Sulu Sea that remains one of the least explored basins within the prolific Circum-Borneo hydrocarbon province.

The Sandakan Basin has historically seen limited exploration activity and no commercial production to date, despite its proximity to major oil and gas provinces in Malaysia, Brunei, and Indonesia. Triangle’s entry into this basin, alongside joint venture partners Sunda Energy Plc, Philodrill Corporation, and PXP Energy Corporation, positions the group to unlock substantial untapped resources.

Significant Contingent Resources and Exploration Upside

Within SC-80, two existing gas and condensate discoveries; Palendag-1 and Dabakan-1; were drilled by Exxon in 2009 and 2010 but remained undeveloped due to previously unfavorable market conditions. These discoveries hold contingent resources estimated at 470 billion cubic feet (Bcf) of gas and 5 million barrels of condensate on a gross basis, with Triangle’s net interest representing approximately 176 Bcf of gas and 1.9 million barrels of condensate.

Beyond these discoveries, both contracts encompass multiple exploration prospects and leads identified through extensive 3D and 2D seismic surveys. Notably, the Halcon prospect within SC-80 is a large deep-water basin floor fan with multi-trillion cubic feet (TCF) gas potential, which could significantly enhance the resource base if successfully developed.

Contract Terms and Development Pathway

The service contracts span seven years, structured in four phases. Initial commitments focus on seismic data reprocessing and interpretation, with a combined cost of approximately US$1 million gross per contract for the first two phases. The latter phases include discretionary drilling commitments, with wells planned at a gross cost of US$15.5 million each. Triangle’s share of these costs is proportionate to its 37.5% interest.

This phased approach allows the joint venture to progressively de-risk the assets, moving from data evaluation to potential drilling and development decisions. The positive reassessment of economic potential under current market conditions underpins the JV’s optimism about advancing these projects.

Supportive Regional and International Backing

The awards reflect a supportive regulatory environment in the BARMM region and the Philippines at large, which views hydrocarbons as a key component of energy security. The Australian Government, through its Southeast Asia Economic Strategy, has publicly congratulated Triangle Energy, highlighting the broader geopolitical and economic collaboration underpinning this investment.

Triangle’s Managing Director, Conrad Todd, emphasized the significance of these contracts as a culmination of sustained effort and a platform for future exploration success. The involvement of the Australian Embassy and Austrade in Manila underscores the strategic importance of this venture for bilateral relations and regional energy development.

Looking Ahead

With seismic reprocessing and advanced geophysical modeling underway, the joint venture aims to firm up prospectivity and prepare for drilling campaigns. Success in these next steps could unlock a new chapter of gas production and exploration growth for Triangle Energy, potentially positioning the company as a key player in the emerging Philippine offshore energy sector.