Pilot Energy Ltd. has raised AU$3.44 million in a share placement to fund its Cliff Head operations offshore Western Australia.
The company issued 955,554,882 new shares at 0.36 cents per share to institutional investors in two tranches. Settlement of tranche one is expected to take place on February 2, while settlement of the second tranche is set for February 27.
Pilot Energy plans to use the funds from the placement to underpin corporate activity associated with the Cliff Head operations, the Capture 6 Direct Air Capture project, corporate costs and working capital.
Pilot Energy Chairman Greg Columbus said: “This capital raising, along with proceeds from recently announced development of the Three Springs solar project gives Pilot Energy reasonable runway to meaningfully progress a number of corporate transactions currently being processed.
“We expect the completion of commercial arrangements in relation to any one of these opportunities will represent a major catalyst for an increase in the value of Pilot Energy, which is what Pilot is working towards.”
Pilot Energy is a junior oil and gas exploration and production company, which is pursuing diversification and transition to the development of carbon management projects, production of hydrogen and clean ammonia for export.
The company is proposing to develop Australia’s first offshore carbon storage project through the conversion of the Cliff Head oil field and associated infrastructure from oil production to carbon storage.
Pilot Energy holds a 21.52 per cent interest in the Cliff Head oil field and Cliff Head infrastructure.
