Triangle Energy Acquires Operated Interest in WA-481-P, Offshore Western Australia
Perth-based Triangle Energy (Global) Ltd. has entered into a binding agreement with Pilot Energy Ltd. to acquire a stake in and operatorship of exploration permit WA-481-P, located offshore in the Northern Perth basin.
Under the terms of the deal, Triangle Energy will acquire the 78.75% interest in exchange for a cash payment of A$300,000 payable at closing, and fund A$1.22 million (21.25% of the total A$5.75 million cost) for the costs of Pilot Energy’s work programme in the permit for the first three years. As a result, Pilot Energy will hold a reduced 21.25% interest in the permit.
In September, Pilot Energy had entered into an agreement with Key Petroleum Ltd. to acquire the remaining 40% interest in WA-481-P for a total consideration of approximately A$1.1 million payable in stock, subject to closing adjustments. The completion of this transaction is subject to the receipt of Pilot Energy’s shareholder approval
WA-481-P comprises 130 blocks covering an area of approximately 8,605 sq. km located off the coast of Western Australia. The permit primarily targets the Dongara Sandstone play and Irwin River Coal measures, and contains the Dunsborough oil and Frankland gas discoveries, estimated to contain 2C contingent resources of 44.4 billion cubic feet of gas equivalent (Bcfe).
Sydney-based Pilot Energy currently holds interests in various onshore and offshore exploration permits in the Perth basin in Western Australia. ASX-listed Triangle Energy is engaged in the exploration and development of assets in the Perth basin in Australia, with a primary focus on operations at the Cliff Head oil field, the Arrowsmith Stabilisation plant and the Xanadu-1 oil field.
“The sale of the majority interest in and transfer of operatorship in WA481-P and the formation of the Cliff Head Wind and Solar Project Joint Venture is directly aligned with the strategic plan that the company announced in the ASX release of 13 May 2020 and with the company’s announcement of the Mid West Wind Solar Project feasibility study,” said Pilot Energy’s Chairman, Brad Lingo.
The transaction is subject to customary closing conditions, including Pilot Energy completing its acquisition of Key Petroleum’s 40% interest in WA-481-P, and Pilot Energy and Triangle Energy agreeing on a revised joint operating agreement in respect of the permit. The companies will also need a joint operating agreement in respect of the Cliff Head wind & solar project joint venture, and access agreements in respect of the Cliff Head and Arrowsmith infrastructure and operations on the area of the permit. The transaction is expected to close on or before March 15th, 2021, or as otherwise agreed.