Triangle Energy restarts production from Cliff Head well

Australia’s Triangle Energy has resumed production from the CH-7 well at the Cliff Head oil field following a successful workover program.

Triangle Energy said on Tuesday that the CH-7 well restart occurred on the afternoon of 28 November 2020.

The company added that operations returned to normal after a workover programme which included the installation of a new, downhole electric submersible pump. Triangle stated that the workover of the well was completed ahead of schedule and under budget.

Performance testing and verification is underway and the company stated that the production associated with the CH-7 well was expected to stabilise at approximately 237 bopd, bringing the field total production to approximately 825 bopd.

The successful resumption of production on the CH-7 well revalidates Triangle’s decision in 2019 to move to the hydraulic workover unit alternative system for safe and lower-cost operations, ESP design and replacement.

As for the CH-6 well workover, which started concurrently with the CH-7 workover, it is temporarily suspended after initial attempts to retrieve the old ESP were unsuccessful. The failed ESP had been in production for over ten years.

This pause in operations enables Triangle to progress with contingency planning without incurring any standby costs.

The target date for resumption of workover activities for CH-6, under the current contracting agreements, will be the first quarter of 2021.

In a separate statement from Wednesday, Triangle started arbitration proceedings against PT Enso Asia by filing a notice of arbitration with the Singapore International Arbitration Centre over unpaid consideration from the company’s sale of its Pase PSC asset in 2016.

Triangle is owed $1.02 million concerning the sale and purchase agreement for the Pase PSC. All the conditions precedent on the sale agreement were satisfied and/or waived in February 2016.

As previously disclosed, the company attempted to advance discussions with PT Enso Asia to have the funds released, however, the buyer failed to provide its consent for Triangle to withdraw the escrowed funds.

Having exhausted all pre-arbitration remedies available to Triangle under the sale agreement, the company has now filed a notice of arbitration against PT Enso Asia.