Triangle Energy (Global) Ltd (ASX:TEG) and Pilot Energy Ltd (ASX:PGY) have executed joint venture agreements and access deeds formalising the WA-481-P upstream joint venture and the Cliff Head Wind and Solar joint venture.
WA-481-P is immediately adjacent to, contiguous with and surrounds the Triangle-operated offshore Cliff Head Oil Field.
Under the WA-481-P sale, Triangle acquires a 78.75% interest and is appointed as operator and Pilot retains a 21.25% interest in the tenement in return for a $300,000 cash payment and a free carrying of Pilot over the next 3 years, which includes acquisition and processing of extensive 2D and 3D seismic surveys.
WA-481-P Seismic and Prospects and Leads
In addition to and in parallel with the WA-481-P transaction, Pilot and Triangle also agreed to form the Cliff Head Wind and Solar Project Joint Venture to initially assess the feasibility of the development of an offshore wind and onshore wind and solar power project centred around the Cliff Head Offshore Oil Field production facilities, Cliff Head Alpha and the onshore Arrowsmith Separation and Processing Facilities.
Mid-West feasibility study
Under the Cliff Head Wind and Solar joint venture agreement, Pilot holds an 80% operating interest and will free carry Triangle, which holds a 20% interest, during the initial feasibility study period.
This feasibility study will be conducted as part of Pilot’s Mid-West feasibility study which is expected to commence in June 2021.
Triangle managing director Robert Towner said “The consolidation of WA-481-P combined with the partnership at the Cliff Head Oil Field marks a new era for the Mid-West energy sector and Perth Basin.
“The Cliff Head Alpha Platform, Arrowsmith Stabilisation Plant and pipeline shoreline crossing provides significant infrastructure value to the region should the joint venture prove up additional conventional oil prospects and leads.
“The initiation of studies into wind and solar renewable energy is globally recognised to be complimentary for existing oil and gas infrastructure.”
Regulatory approvals
The principle outstanding condition to completion of Pilot’s sale of the interest in WA-481-P and transfer of operatorship relate to final regulatory approvals including in relation to the transfer of Key Petroleum's interest in WA-481-P to Pilot – once these approvals are received Pilot will receive the $300,000 cash payment to Pilot and the work program free carry will commence.