News & Media

A Perth Basin gas exploration joint venture which counts John Poynton-chaired Strike Energy among its partners has abandoned its latest exploration well. 

The EP 437 joint venture operated by Triangle Energy revealed it had hit a duster at the Becos 1 exploration well, failing to intercept gas at economic quantities. 

Triangle owns 50 per cent of the JV in the highly prospective basin near Dongara, alongside Perth headquartered Strike and New Zealand-based Echelon Resources – which each own 25 per cent. 

The hole was drilled up-dip of the Wye-1 well drilled in 1996, and studies assed the well as having a 20 per cent chance of success in the lead up.

“The Becos-1 well is further evidence of the complexities of the hydrocarbon system which sourced the gas at Wye-1 and the oil in the Mount Horner oilfield,” Triangle managing director Conrad Todd said. 

Strike issued a brief release acknowledging the result, while Echelon chief executive Andrew Jefferies was more outspoken on the outcome.

“No Easter egg,” he said. 

“While drilled under time, under budget and safely by operator Triangle, it was not the outcome we were looking for.

“The poor gas shows and lack of oil is surprising. It’s very disappointing to spend hard won shareholders’ funds on a dry hole.”

Mr Jefferies invoked the words of opera singer Beverly Sills in his assessment of the result.

“The late Beverly Stulls comment, ‘you may be disappointed if you fail, but you’re doomed if you don’t try’, is germane to our industry in these circumstances,” he said.

Gas producer Strike is by far the largest of the three JV partners involved in the joint venture, with a market capitalisation of over $450 million.

Its shares were steady in early trade.

Triangle shares fell 40 per cent to 0.3 of a cent – giving it a market capitalisation of $10.44 million.

Echelon shares were up 2.9 per cent at 36c, for a market capitalisation of $78 million. 

More than 70 per cent of its shares are owned by Singapore-based OG Oil & Gas.