The head of Australia-listed minnow Triangle Energy (ASX: TEG) has set out his hopes to do a West of Shetland asset deal with Shell (LON: SHEL).
Triangle picked up the Cragganmore gas field during the NSTA’s recent 33rd licensing round, a find with contingent resources of up to 527 billion cubic feet of gas.
That’s flanked by the Tobermory and Bunnehaven discoveries, which Shell also picked up during the same licensing round.
At a recent industry event in Sydney, Triangle Energy managing director Conrad Todd said that, to get the find going, they’ll have to have a chat with Shell.
“We bid on three areas, of which there were four bits of acreage. So far, we’ve been awarded a gas field in the west of Shetland, the Cragganmore gas field. Half a trillion cubic feet of gas.
“It needs some work to be developed and we need to get together with Shell who have the Tobermory and Bunnehaven field next to us.
“These are low expenditure for the next two to three years then we’ll have to come and have a conversation with Shell.”
Triangle is currently 50-50 partner on Cragganmore with Athena Exploration, a firm which hopes to create a new production hub in the region with other finds including Hale.
The West of Shetland is home to some of the largest resources in UK waters, including Clair, Cambo and Rosebank.
However it has been the host of some high-profile disappointments too, such as Hurricane Energy’s (now Prax) Lancaster field, which had a vast downgrade, and some recent exploration dismay for BP and Shell at the Ben Lawers well.
Analysts have previously said only a major find would be enough to whet Shell’s appetite for its 33rd round exploration licences.
Wood Mackenzie said it would need as much as one trillion cubic feet of gas to push the major to development.
Cragganmore, based on Triangle’s estimates, would get them half way there.
According to Wood Mac, Tobermory and Bunnehaven have resources of 250 billion cubic feet.
Shell declined to comment.
Triangle Energy ahs also picked up North Sea exploration blocks with Orcadian Energy and is partnered on efforts in the southern sector with Painted Wolf and Curium Resources ahead of further licence awards later in the year.
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