Triangle Energy (Global) Limited announced the completion of successful farmout negotiations and the signature of a binding term sheet with New Zealand Oil & Gas, who will be acquiring a 25% interest in Permits L7 and EP 437. The terms comprise the following: Payment of $1.9 million towards expenditure on the Bookara 3D seismic data. Payment of $3.75 million of the estimated $7.5 million cost of the first well in Permit L7, (any additional costs to be on a per interest basis).

Payment of $2.81 million of the estimated $7.5 million cost of the second well on the L7 Permit, (any additional costs to be on a per interest basis). Payment of approx. $1.5 million of the estimated $3.0 million cost of a well in EP 437 (any additional costs to be on a per interest basis).

NZO will therefore have paid a total $9.96 million for a 25% interest in the permits. When combined with the previously announced 25% farmout with Talon Energy over the same permits, this completes the planned farmout funding on these permits. This farmout of company's interests in L7 and EP 437 will result in reimbursement of all costs to acquire and process the Bookara 3D seismic and will cover nearly all of Triangle's upcoming drilling costs in the permits.

The Joint Venture will comprise three technically competent and well-funded partners who are keen to develop the exciting north Perth Basin acreage.