Pilot Energy Acquires Remaining 40% in WA-481-P, offshore Western Australia
ASX-listed Pilot Energy Ltd. has entered into an agreement with Key Petroleum Ltd. to acquire the remaining 40% interest in exploration permit WA-481-P located offshore in the Northern Perth basin. Upon completion, Pilot Energy will hold a 100% operated interest in the permit.
Under the terms of the deal, Pilot Energy will issue 21 million fully-paid ordinary shares of the company at a deemed price of A$0.051 (based on the closing share price on September 7th) in exchange for Key Petroleum’s interest in the permit. Of the total stock consideration, 5 million shares will be issued to within three days of signing the definitive transaction documents, with the remaining 16 million shares to be issued upon completion of the deal.
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.
“The company sees the consolidation of the ownership of WA-481- P as highly complementary to the company’s Mid West Wind and Solar Project and the new corporate strategy to focus on gas, storage and renewables. The high quality offshore wind resource, the existing offshore facilities and onshore electricity and gas infrastructure and the very large conventional gas discoveries in the North Perth Basin point to the potential to combine all these elements into the development of a world class renewables and low carbon energy and resource precinct,” said Brad Lingo, Chairman of Pilot Energy.
The transaction is subject to customary closing conditions and execution of definitive transaction documents, and is expected to close within three business days following the receipt of approval from Pilot Energy’s shareholders.