Pilot Energy's strategic acquisition update

Pilot Energy (ASX:PGY) has announced revised acquisition terms with Triangle Energy for the Cliff Head Oil Field Production License. The updated agreement introduces new payment conditions aimed at advancing Pilot's Cliff Head Carbon Storage Project. The acquisition involves a total payment of $5.75 million, starting with an initial $900,000 payment by December 17, 2024, followed by monthly payments beginning February 2025. Upon completion, Pilot will fully own and operate the production license WA-31L.

Strategic overview and future outlook

Pilot Energy Limited has strategically revised the terms of its agreement with Triangle Energy for the acquisition of the Cliff Head Oil Field Production License. The updated terms include an initial payment of $900,000 by December 17, 2024, followed by five monthly payments totaling $4.85 million starting February 15, 2025. Additionally, Pilot will pay $4 million upon securing a CO2 injection license and up to $7.5 million in royalties based on production. Once completed, Pilot will fully own and operate the production license, which aligns with their strategy to transition from traditional oil and gas exploration to carbon management and clean energy projects. The company is committed to utilizing its existing assets to develop integrated clean energy solutions, including hydrogen and ammonia, as part of its sustainable energy transition.

Executive insights on acquisition terms

Pilot Energy is pleased to announce the revised terms for acquiring Triangle Energy's interest in the Cliff Head Oil Field. This agreement facilitates our transition from oil and gas exploration to developing carbon management and clean energy projects. With the completion of this acquisition, Pilot will become the sole owner and operator, marking a significant step in our strategic shift towards sustainable energy solutions.