Triangle Energy (Global) Ltd has signed a binding term sheet with Pilot Energy (ASX:PGY) Ltd which forms the basis for a revised Sale and Purchase Deed regarding the sale of Triangle’s interest in the Cliff Head project.
The revised terms are:
- Pilot will pay Triangle $900,000 on December 17, 2024.
- Pilot will pay the remaining $4.85 million in five monthly payments, commencing on February 15, 2025, and finishing on June 15, 2025.
These purchase payments are to be followed by further payments of $4 million on award of an injection licence and up to $7.5 million in royalties.
Settlement timeframe
In addition, Pilot will continue paying the full operating costs for the Cliff Head facility.
Triangle managing director Conrad Todd said: “We have negotiated a settlement timeframe for the Sale and Purchase Agreement which will allow Pilot to secure the necessary finance.
"We note that Triangle is well funded for its share of the outgoings for the upcoming Becos Perth Basin exploration well.”
The revised terms replace those in the previous Sale and Purchase Agreement under which Pilot was to pay Triangle $4.1 million by November 29, 2024.
Payment was not made by this date and in line with the agreement, this payment will now increase to $5.75 million. This increased amount is reflected in the new binding term sheet.
About Triangle Energy
Triangle Energy is an ASX-listed oil producer and explorer based in Perth, Western Australia.
The company has a 78.75% interest in the Cliff Head Oil Field, which includes the Arrowsmith Stabilisation Plant.
Triangle also has a 50% share of the Mt Horner L7 production licence and the adjacent EP 437 exploration licence, both onshore in the Perth Basin.
In the UK, Triangle has a 50% interest in the recently awarded P2628 licence comprising four blocks containing the Cragganmore gas field and a 50% interest in licence P2650 comprising nine blocks in the Outer Moray Firth.
The company continues to assess acquisition prospects to expand its portfolio of assets.