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In an ambitious statement this morning, Triangle said it had reduced its operating costs, deferred non-essential activities and cut capital expenditure to just A$2.5 million for the year, which would result in lifting costs of just US$15.40/bbl from its Cliff Head oilfield.
Triangle has focused on reducing expenses wherever it can for several months already, negotiating cheaper contracts with its equipment suppliers and service providers.
Managing director Rob Towner said the company was "well ahead of the curve" and was benefiting from investment in its oil fields early in the piece.
"We have excellent relationships with our suppliers, particularly those we use locally in the Perth Basin area and working with them we have managed to reduce our routine costs significantly," Towner said.
Over the last six months, while the oil price remained relatively high in the US$60 - US$70/bbl mark, Triangle re-invested around A$4.5 million into its assets, replacing an electric submersible pump into one of its five producing wells and other maintenance.
This, according to Towner, has ensured consistent production from its Cliff Head field of 970 barrels of oil per day.
"We are benefiting from that now and will continue to benefit in the future," he said.
Triangle holds a 78% interest in the Cliff Head field and production platform as well as the Arrowsmith onshore oil refinery alongside Royal Energy.
The company has several workover and infill drilling opportunities on the field which could boost production but will decide on whether to continue development once the oil market recovers.
Triangle's other assets include a 45% interest in the offshore TP/15 joint venture in Perth Basin and a 50% stake in the LR(R1) Mt Horner oil discovery.
Triangle said it was assessing future investment budgets for both projects.
Earlier last month the company appointed Troy Brice, an experienced hand in the oil and gas sector as its chief operating officer.
Triangle shares had soared more than 22% at noon and were trading at 3.3 cents. Its market cap was around $10 million.
