Triangle Energy (Global) (ASX:TEG) announced a strategic move into Southeast Asia, confirming it has entered into a joint study agreement for a high-potential offshore exploration area in Indonesia.
The agreement, conducted alongside an Indonesian institution and overseen by the Directorate General of Oil and Gas, marks a critical expansion for the Australian-listed energy firm as it seeks to capitalise on under-explored regions with proven prospectivity.
Under the terms of the JSA, Triangle Energy will undertake a comprehensive technical evaluation of the offshore block to determine its viability for oil and gas production.
The study phase is expected to span six to eight months, with an estimated investment of approximately US$300,000.
While the specific coordinates of the project remain confidential due to the competitive nature of the Indonesian energy sector, the company has highlighted the area's significant "gas and oil prospectivity."
A primary advantage of this mechanism is the preferential rights it grants Triangle.
Upon the successful completion of the study, the company will hold priority status to negotiate a production sharing contract with the Indonesian government.
Triangle’s Managing Director, Conrad Todd, expressed optimism regarding the venture, noting that despite Indonesia's long history as a producer, large swathes of its offshore territory remain remarkably under-explored.