Triangle Energy and Pilot Energy Redefine Joint Venture Terms for Cliff Head Assets

March 28, 2025 04:57 PM AEDT | By Team Kalkine Media

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Triangle Energy and Pilot Energy Redefine Joint Venture Terms for Cliff Head Assets — Image source: Shutterstock

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Highlights

Triangle Energy (TEG) revises sale agreement with Pilot Energy (PGY).

Sale completion extended to September 2026, providing Pilot Energy time for funding.

Triangle Energy secures interest accrual, ensuring financial gains despite the delay.

In a significant update from the energy sector, Triangle Energy (ASX:TEG) has successfully renegotiated the terms of its agreement concerning the Cliff Head Joint Venture assets with Pilot Energy (ASX:PGY). This strategic move has led to an adjustment in the timeline and financial terms beneficial to both entities involved.

Under the new terms agreed upon, the sale's completion date has been pushed to September 2026. This extension grants Pilot Energy ample time to arrange the necessary financial backing to proceed with the acquisition. The decision to extend the timeline reflects a strategic patience and foresight, aiming to ensure that financial and operational targets are met without undue pressure.

Despite the postponement, the financial contours of the deal remain intact with the sale price pegged at approximately A$5.6 million. However, the total expected payments will likely reach around A$6.6 million once interest is accrued. This structure is advantageous for Triangle Energy as it allows the company to earn additional revenue through interest, thereby enhancing the overall value retrieved from the deal.

In terms of financial arrangements, Pilot Energy will issue a secured promissory note valued at $5,563,000, maturing at the end of September 2026. This note underscores the commitment of Pilot Energy to not only adhere to the agreed terms but also ensures a structured financial pathway towards completing the transaction. Moreover, Pilot Energy will take on all operating expenses related to the Cliff Head assets until the deal is finalized. An initial payment of $167,000 is also scheduled for the end of August 2025, marking a significant milestone in the transaction process.

Conrad Todd, the Managing Director of Triangle Energy, commented on the revised terms stating that the new agreement aligns well with the strategic interests of both companies. It provides Pilot Energy with the needed leeway to secure funds while ensuring that Triangle Energy receives the agreed sum, augmented by interest. Moreover, the deal structure eliminates any operational cost burden for Triangle Energy concerning the Cliff Head assets during the interim period.

This revised agreement not only underscores the cooperative spirit between the two companies but also highlights their strategic acumen in navigating the complexities of financial and operational planning. By allowing Pilot Energy extra time to secure funding, both parties are poised to maximize their outcomes from this transaction, thereby setting a precedent for how flexibility and strategic planning can lead to mutually beneficial results in the energy sector.

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