ASX-listed oil and gas company Pilot Energy Limited said Tuesday its proposed agreements with Triangle Energy to farm out a part of a block off W. Australia and create a solar and wind joint venture would not go ahead as the Australian regulators have refused to grant the necessary approvals.
The two companies had in November 2020 agreed for Triangle to acquire a 78.75% interest in, and operatorship of, the offshore Perth Basin exploration permit WA481-P which included Triangle funding the WA-481P $5.75m work program. The companies at the time also said they intended to form a joint venture to explore the development of a wind and solar renewable energy project centered around the Cliff Head Oil Field offshore and onshore production facilities.
According to Pilot Energy, completion of the sale agreement was conditional on the receipt of approval, by the cut-off date, from the National Offshore Petroleum Titles Administrator (“NOPTA”), approving the preliminary transfer of interest from Key Petroleum Limited to Pilot and the transfer of an interest in WA-481-P from Pilot to Triangle. In turn, the formation of the Cliff Head wind and solar joint venture was conditional on the completion of the sale agreement.
On December 24, 2021, Pilot said that while NOPTA continued its assessment of the proposed transfer to Triangle, Pilot was starting execution of the minimum work program to assure full permit compliance.
However, Pilot said that on January 4, 2022, Pilot and Triangle received notice from NOPTA that, based on the information that it had received to date, it intended to refuse to approve the transfer on the basis that it was not satisfied that as the proposed transferee, Triangle had demonstrated sufficient financial resources to meet the obligations associated with WA-481-P.
"Given the position expressed by NOPTA regarding the unlikely approval of the transfer to Triangle and the passing of the cut-off date, Pilot has today advised Triangle in writing that it is terminating the Sale Agreement on the basis that the Conditions have not been satisfied or waived by the cut-off date," Pilot said Tuesday.
Consequently, Pilot said that the agreements entered into by the two companies "do not, and shall no longer have, any binding effect and the relevant parties are to be immediately released from any obligations (if any) under these agreements."
As a result, Pilot said it retained operatorship of, and 100% beneficial interest in, WA-481-P; operatorship and 100% ownership of the Cliff Head wind and solar Project (a subset of Pilot’s proposed Mid West Renewables project area); and an interest in the Cliff Head Joint Venture, which owns the Cliff Head infrastructure, through its 50% interest in Triangle Energy Operations Pty Ltd, the operator of the Cliff Head Oil Field.