Pilot Energy is aiming to be the sole operator of the Cliff Head oil project as the company looks poised to buy Triangle Energy’s interest in the venture.
Cliff Head field was the first commercial oil discovery that was developed in the offshore Perth Basin, Western Australia.
The oil field and platform is located about 270 kilometres north of Perth. The Cliff Head Project is in a shallow marine environment, in water depths of 15 to 20m, about 12 kilometres offshore from Dongara.
Pilot intends to transform the oil field and its infrastructure into a carbon capture and storage facility.
Cliff Head changes hands
The two companies have signed a binding term sheet which will form the basis for a revised sale and purchase deed in respect to Triangle’s interest in the Cliff Head project.
The terms state that Pilot will pay Triangle $900,000 on the 17th December 2024.
Pilot will then pay the remaining $4.85 million in five monthly payments, commencing on 15th February 2025 and finishing on the 15th June 2025.
These purchase payments are to be followed by further payments of $4 million on award of an injection license and up to $7.5 million in royalties.
In addition, Pilot will continue paying the full operating costs for the Cliff Head facility.
The revised terms replace those in the previous Sale and Purchase Agreement. Under the previous terms, Pilot was to pay Triangle $4.1m by November 29, 2024.
The payment was not made by this date and therefore in line with the agreement, this payment will now increase to $5.75 million.
This increased amount is reflected in the new binding term sheet.
“We have negotiated a settlement timeframe for the sale and purchase agreement which will allow Pilot to secure the necessary finance,” Triangle Managing Director Conrad Todd said
“We note that Triangle is well funded for its share of the outgoings for the upcoming Becos Perth Basin exploration well.”
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