Triangle Energy Global : Quarterly Activities Report and Appendix 5B

52 Wk Share Price Range

$0.075 - $0.021

Market Capitalisation

$18.06M (at $0.032 per share as at 29 October 2020)

Issued Capital (as at 30 September 2020)

434.1M Outstanding Shares

29.1M Performance Rights

1.8M Unlisted Options @$0.10

Cash (as at 30 September 2020)

$3.47M

Investment in State Gas Limited $25.86 million (at $0.54 per share, as at 29 October 2020)

Debt (as at 30 September 2020)

$0.86M TEO Inter-Company Loan

Top 20 Shareholders (30 September 2020)

47.68%

Board and Management

Timothy Monckton

Non-Executive Chairman

Rob Towner

Managing Director/CEO

Wai-Lid Wong

Non-Executive Director

Malcolm King

Non - Executive Director

Marvin Chan

Chief Financial Officer

Lucy Rowe

Company Secretary

Triangle Energy (Global) Ltd Suite 2, 100 Havelock Street, West Perth, WA 6005

T: [phone]

E: [e-mail]

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Period ending 30 September 2020

HIGHLIGHTS DURING THE QUARTER

SUMMARY

• Commenced CH7 and CH6 workover planning
• Commenced CH11 Water Injection evaluation for a possible increase in production
• Engaged Risc Advisory for Reserves Review
• Completed Placement and Share Purchase Plan with overwhelming support
• Won BANI Arbitration proceeding in Jakarta, Indonesia
• Encouraging positive drilling results in State Gas

Cliff Head Oil Field (Cliff Head) Production

1. Average Oil Price: US$39.90 per barrel

1. Produced and sold: 53,246 bbls (ave. 579 bopd) - a decrease of 20% from last quarter

1. Cliff Head Joint Venture (CHJV) crude sales revenue: AU$2.97 million (previous quarter AU$2.65 million) - an increase of 12% from last quarter due to improved oil price

1. Lifting costs: US$29.56/bbl (previous quarter US$21.46/bbl). Higher cost per barrel due to lower production

1. Operating loss: US$9.09/bbl Corporate

1. July 27, 2020 - the BANI Arbitration Centre in Jakarta had found in favour of Triangle by rejecting the claim of Perusahaan Daerah Pembangunan Aceh (PDPA) in its entirety and ordering PDPA to pay Triangle the arbitration costs

1. August 27, 2020 - Successfully raised AU$2.2M equity by way of a private placement to sophisticated and professional investors

1. September 4, 2020 - launched a Share Purchase Plan (SPP) to eligible shareholders

1. October 7, 2020, successfully completed the SPP with applications totalling AU$4.93 million. The SPP was scaled back to AU$3.91 million to comply with the threshold rule under ASX Listing Rule 7.2 Exception 5

1. The Company is the major shareholder of State Gas Limited (ASX:GAS, State Gas) with an interest of 27.67% as at the date of this report. The investment is equivalent to AU$25.86 million in value at $0.54 (as at 29 October 2020) per State Gas share

1. Cash: AU$3.47 million (previous quarter: AU$2.41 million) which includes AU$1.43 million in escrow

COMPANY UPDATE

Cliff Head Oil Field (100%)

Production and Revenue

• CHJV oil produced and sold 3 months to 30 September 2020: 53,246 bbls
• CHJV oil sales revenue September 2020 quarter: AU$2.97 million
• CHJV September 2020 quarter average barrels sold: 579 bopd

September 2020 Quarter	CHJV Total (100%)	CHJV Total (100%)	Per barrel
	AU$	US$*	US$*
	Millions	Millions
Sales	2.974	2.127	$39.94/bbl
Lifting costs1	(2.201)	(1.574)	($29.56)/bbl
Operating margin	0.773	0.553	$10.38/bbl
Trucking	(0.262)	(0.188)	($3.52)/bbl
Routine profit	0.511	0.365	$6.86/bbl
Non-routine costs1	(1.188)	(0.849)	($15.95)/bbl
Gross profit (loss)	(0.677)	(0.484)	($9.09)/bbl

* US$/AU$ conversion rate of 0.7149

Note: Triangle will be continuing to report for the CHJV at 57.5% as it currently controls two of the three joint venture participants in the CHJV. The 42.5% acquired by Triangle and Royal Energy Pty Ltd2 (21.25% each) on 31 March 2017 is controlled 50/50 and is not consolidated into the Triangle Group of Companies.

Cliff Head Operating Margin

Cliff Head 6 (CH6) and Cliff Head 7 (CH7) continued to be in shut-in during the quarter. The Company investigated all possible non-intervention solutions for

CH7 and evaluated different technological options all of which failed to pass the safety and economical benchmarks. After considering different options, the Company decided to perform a well intervention solution. Planning for the workovers continued until the end of the quarter and negotiations with major contractors resulted in favourable terms.

During the quarter, the Company managed to conduct normal operations at Cliff Head with below budget expenditures. The Cliff Head Joint Venture (CHJV) has a budget of AU$4.8 million for all costs other than capital expenditure and subsurface works but

1. Lifting costs are calculated to include routine production costs only. Non-routine costs exclude exploration, capitalisable expenditures and the associated amortisation.
2. On 25 September 2020, Pilot Energy Limited announced that it had entered into a definitive share sale deed with Royal Energy Pty Ltd subject to shareholder approval.

Triangle Energy (Global) Ltd - September 2020 Quarterly Activities Report 2

has only spent AU$3.6 million. However, as a result of lower production caused by the shut-in of 2 wells, the lifting cost per barrel was higher compared to the June 2020 quarter. Disregarding the effect of the offline wells, lifting costs were expected to be approximately US$21 per barrel which is consistent with the reduced cost in June 2020 quarter.

Average oil price for the quarter was US$39.9/bbl. This oil price was significantly better than last quarter by more than 50%. The increase was due to the agreed production cut by the OPEC+ group coupled with an increasing demand caused by the easing of COVID-related restrictions. Rystad forecasts Brent oil price to average US$42 per barrel in 2020, US$49 per barrel in 2021 and to go up towards US$60 per barrel near the end of 20213.

CH6 and CH7 Workover Campaign

Subsequent to the end of the quarter, on 26 October 2020, the Company was pleased to provide an update on its Cliff Head Operations in respect of the commencement of CH6 and CH7 workover campaign.

On Sunday, 25 October 2020, the Hydraulic Workover Unit (HWU) arrived at the Cliff Head Alpha Platform (CHA) from Fremantle marking the start of the CH6 and CH7 workover campaign. Over the coming months the Electric Submersible Pump (ESP) system on both wells will be replaced, enabling the production from these wells to be restarted by year-end 2020.

As previously announced, the CH6 and CH7 wells have been shut in since June this year. Successful execution of these workovers will return approximately 400 barrels of oil per day to Cliff Head's production, taking total production to approximately 1000 barrels of oil per day.

The Company looks forward to keeping shareholders updated on the campaign's progress.

Cliff Head Renewal Project

Three attractive drilling opportunities that could be drilled and developed from the Cliff Head platform and are technically mature and economically justified for drilling were developed from the previously completed Cliff Head Renewal Project (CHRP), the South-East Nose development, West High appraisal/development and Mentelle Updip exploration prospect. The results of this work were announced on 23 April 2020. If these opportunities are successful, it could materially extend the life of the Cliff Head oil field.

CH11 Workover

During the quarter, the company evaluated a low-cost workover opportunity to initiate water injection into the uppermost perforated interval of CH11 to support production from CH7 and CH13.

A workover of CH11 involving a slickline or wireline intervention to open the upper perforated zones in CH11 was evaluated and is planned for Q1 2021. By activating a sliding sleeve, water injection into the upper perforated zones of CH11 could enhance production from CH7. Injection into the upper zones at CH11 could support local offtake from CH7 and improve sweep efficiencies in the eastern extent of the field.

Farmout Campaign and Commencement of Well Planning

The Company has started with the preparation for a farmout campaign on behalf of the Cliff Head Joint Venture, the purpose of which is to seek interested parties to participate in a Cliff Head drilling program. The company has also commenced well planning for SE Nose, West High and Mentelle Updip targeting a drilling campaign during the first half of 2022.

3 Rsytad Oil Market Monthly September 2020.

Triangle Energy (Global) Ltd - September 2020 Quarterly Activities Report 3

Far North

Mentelle

5.4 MMstb

West High

1.1 MMstb

Catt

0.8 MMstb

SE Nose

0.8 MMstb

South Cliff Head

3.0 MMstb

Cliff Head Field, Prospects and Leads

TP/15 Xanadu-1 JV (45%)

TP/15 hosts the Xanadu oil discovery within the large Xanadu structure. Although the reservoir quality is less than optimal, the discovery of oil in the Xanadu-1 well is positive in so far as it demonstrates an oil charge to and moveable oil within TP/15. The Company also expects reservoir quality to improve west of the Xanadu structure.

During the September quarter Norwest Energy Limited (ASX:NWE), as Operator of the TP/15 Joint Venture, completed its technical studies of the 2017 Xanadu discovery and concluded that further appraisal of the Xanadu oil discovery is not warranted, due to the limited contingent resource. NWE also undertook regional mapping of the permit. In addition to the previously identified West Xanadu lead, significant exploration potential remains in TP/15 in the Texel oil prospect, the crest of which is mapped as being located some 10km to the southwest of Xanadu. Texel is a Permian oil play, targeting the High Cliff Sandstone which hosts the prolific gas discoveries onshore, on the other side of the Beagle Ridge. Additional oil potential exists in the Dongara Sandstone and Irwin River Coal Measures, the latter being the reservoir at the Cliff Head oil field.

Additional seismic coverage is required to progress Texel and West Xanadu to drillable status, and the TP/15 Joint Venture has recently received approval from DMIRS to modify the forward work commitments so that the appraisal well commitment of permit year 3 is replaced by geological studies and seismic feasibility studies. One hundred (100) kms of 2D seismic surveying is required in permit year 4 and an exploration well in permit year 5 (both permit years being discretionary). The modified work program enables the TP/15 Joint Venture to progress exploration of a large oil target over the next two years at a relatively minor cost before a commitment to drill is required

Triangle Energy (Global) Ltd - September 2020 Quarterly Activities Report 4