Pilot Energy Acquires Remaining Interest South Perth Basin Permits
ASX-listed Pilot Energy Ltd. has entered into an agreement with privately-held Energy Resources Ltd. to acquire an additional 40% interest in exploration permits EP 416 and EP 480 in Western Australia. As a result, Pilot Energy will own a 100% operated interest in permits.
The transaction consideration comprises of a nominal consideration of US$1 for each permit, and the assumption of all liabilities, covenants, agreements, and obligations under the Joint Operating Agreement (JOA).
EP 416 and EP 480 cover a combined area of approximately 1,589 sq. km in the Perth basin, and target the Permian and Triassic Lesueur sandstones. The permits contain the Leschenault prospect, which has two structural culminations, either of which can be a potential drilling location for a vertical well to test the conventional reservoir targets.
The permits cover and incorporate the area under assessment for the development of the South West CO2 Geosequestration Hub project (the South West Hub), a government-industry partnership led by the Western Australian Department of Mines, Industry Regulation & Safety (DMIRS). The South West Hub is Western Australia’s first onshore Carbon Capture and Storage (CCS) trial project.
Work plans for the permits include a non-invasive geochemical survey to help identify anomalies due to micro-seepage of hydrocarbon gas components from a depth that is broadly conformable to the prospect’s area of structural closure. The results would suggest that either or both reservoir targets are gas-bearing, derisking the prospect for future drilling.
“With full ownership of the SPB Permits, the company is focused on using this foundation to pursue the transition from being an oil and gas explorer into a green energy project developer leveraging existing oil and gas assets and knowledge and experience into integrated green energy production,” stated Brad Lingo, Chairman of Pilot Energy.
“We believe that the company has the unique opportunity to bring together and integrate three critical platforms essential to the successful delivery of the energy transition. Focusing on bringing these elements together around the South West Blue Hydrogen and CCS Project provides the opportunity to deliver strong growth and significant shareholder value,” he added.
Sydney-headquartered Pilot Energy Ltd. currently holds interests in various onshore and offshore exploration permits in the Perth basin. Perth-based Energy Resources operates as a subsidiary of mining services company Mineral Resources Ltd., which had acquired the assets of Empire Oil & Gas Ltd. in 2017 leading to the establishment of Energy Resources in 2018.