The news about the oil discovery at Xanadu-1 is exciting for those involved and even more exciting for the wider region and the industry.
Confirming a new oil discovery at Xanadu is an outstanding achievement. There hasn’t been an oil discovery in the offshore Perth Basin since Cliff Head over 15 years ago. It’s exciting for the industry and for Western Australia. Based on the current understanding of the structure there is an excellent chance of finding a significantly thicker column in an up-dip location which can be reached from the current drilling pad. Xanadu is located 14kms south east of Triangle’s Cliff Head Oil Field and the onshore Arrowsmith Stabilisation Plant (ASP). Arrowsmith has the capacity to service third party crude and therefore can expedite any production from Xanadu to market.”
Mr Darren Bromley, Triangle Energy’s executive director and CFO, said access to the Arrowsmith infrastructure will significantly reduce the capital expenditure required by the JV and is currently underutilised.
“Current production from Cliff Head utilises only 1,200 barrels of oil per day with a plant capacity of 15,000 barrels per day," he noted.
For more details about the discovery, read the latest update from Triangle Energy.