Pilot Energy Limited and Triangle Energy (Global) Limited have agreed to revise the existing Sales and Purchase agreement, to consolidate ownership arrangements for the Cliff Head Joint Venture (CHJV) and the proposed Cliff Head Carbon Capture and Storage Project (CH CCS Project).
The revised agreement allows each company to separately pursue their energy sector strategies.
The revised agreement results in Pilot acquiring the remaining 78.75 per cent interest that it does not already hold in the Cliff Head JV via the purchase of Triangle subsidiaries including Triangle Energy (Operations) Pty Ltd (TEO), which is the operator of the Cliff Head Field.
The transaction is expected to complete by early in 2024.
The agreement supersedes the arrangements under which Pilot was to increase its interest in the Cliff Head Oil Field JV to 60 per cent and become full operator upon receiving National Offshore Petroleum Titles Administrator (NOPTA) approval of a Declaration of Formation for carbon capture and storage covering WA-31L previously announced.
Existing employees of TEO will continue to work on the Cliff Head field as it transitions from oil production to the CCS project. Triangle will also support the ongoing operations of the Cliff Head oil field until the transaction completes.
Brad Lingo, Pilot’s Executive Chair said: “The acquisition of the Cliff Head facility will enable Pilot to effectively pursue its innovative carbon capture project together with its integrated Mid West Clean Energy Project.
“Pilot’s ambitions are being met methodically and this is yet another milestone achievement in the company’s growth strategy. Completion of the acquisition will enable Pilot to introduce strategically aligned partners into the Project as well as financial investors to fund the proposed development.
“This will be the first offshore CCS development in the Mid West, is an important clean energy development in Western Australia and will be one of the world’s leading CCS projects.
Conrad Todd, Triangle’s Managing Director said: “We are pleased to have revised the Sale and Purchase agreement with Pilot which leaves Triangle Energy Global to pursue its aim to become a mid-cap oil and gas company which offers growth through a combination of domestic and international conventional petroleum production and exploration projects.”
“In the interim period between signature and consummation of the agreement, Triangle will continue to support the operation of the Cliff Head oil field and Pilot’s efforts to secure the transition to carbon sequestration. As a result of this deal, Triangle’s improved balance sheet will allow it to focus on existing and new projects including the upcoming Perth Basin drilling programme”.
