Triangle Energy (Global) Ltd continues to work with Pilot Energy Ltd and the National Offshore Petroleum Titles Administrator (NOPTA) to progress completion of the purchase of the majority interest and operatorship of WA-481-P offshore exploration permit.
The proposed transaction regarding the exploration permit remains pending regulatory approval with NOPTA.
To assure permit compliance following uncertainty concerning regulatory approval of the sale agreement and associated documents, Pilot will progress the WA-481-P work program independently of Triangle Energy.
Under the terms of the sale agreement, Triangle Energy is to free carry Pilot for the first three years of the work program from completion of the transaction, which includes acquisition and processing of extensive 2D and 3D seismic surveys.
Terms of the agreement
Under the terms of the sale agreement, as consideration for the transfer to Triangle of the 78.75% interest in WA-481-P and operatorship, Triangle is obligated to
➢ Pay Pilot $300,000 in cash; and
➢ 100% free carry Pilot through the completion of the Year 3 $5.75 million minimum work program.
Given that the transfer of the majority interest and operatorship in WA-481-P is still being assessed by NOPTA, Pilot has advised NOPTA that it will commence execution of the work program activities to assure full permit compliance.
Work program
The 5-year work program commitments for the WA-481-P exploration licence are:
In an operational update, Pilot advises that it is well advanced with executing these activities in terms of the 2D seismic reprocessing and commencement of the environmental studies and planning for the execution of the additional seismic acquisition.
Pilot also intends to ensure that these environmental studies and planning also support the proposed CCS project and the offshore wind projects.
In the event the transfer is ultimately approved, under the terms of the sale agreement, Pilot will recover reimbursement of the expenditures that are subject of the free carry commitments.