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Highlights
- Triangle Energy (TEG) signs a binding term sheet with Pilot Energy (PGY) for revised terms of the Cliff Head project transaction.
- Revised payments include an initial sum in December 2024, followed by structured payments in 2025.
- Pilot Energy will also cover operating costs of the Cliff Head facility.
Triangle Energy (ASX:TEG) has finalized a binding term sheet with Pilot Energy (ASX:PGY) to establish updated terms for the sale of Triangle's interest in the Cliff Head project. This agreement supersedes the previous Sale and Purchase Deed, ensuring a structured approach to payments and ongoing commitments.
As part of the revised terms, Pilot Energy will pay Triangle Energy $900,000 on December 17, 2024. This will be followed by five monthly payments totaling $4.85 million, beginning February 15, 2025, and concluding June 15, 2025. An additional payment of $4 million will be made upon the award of an injection license, along with up to $7.5 million in royalties over time.
Payment Adjustments and Timeline
The revised agreement replaces the original commitment under which Pilot was to pay $4.1 million by November 29, 2024. Due to non-payment by that date, the owed amount has been adjusted to $5.75 million, reflected in the new term sheet.
Pilot Energy has committed to covering the full operating costs for the Cliff Head facility as part of this agreement, ensuring continued operational stability during the transition period. The settlement timeframe allows Pilot Energy to secure the necessary financing to fulfill the terms of the agreement.
Triangle Energy’s Portfolio and Expansion
Triangle Energy is an oil producer and explorer listed on the ASX, holding a 78.75% interest in the Cliff Head Oil Field, which includes the Arrowsmith Stabilisation Plant. Additionally, the company has a 50% interest in the Mt Horner L7 production license and the EP 437 exploration license, located in the Perth Basin.
Internationally, Triangle Energy holds a 50% interest in two UK licenses, P2628 and P2650, which include the Cragganmore gas field and blocks in the Outer Moray Firth, respectively. The company continues to explore acquisition opportunities to expand its asset portfolio.
The updated agreement marks a significant milestone for Triangle Energy, aligning the interests of both companies while securing operational and financial clarity for the Cliff Head project.
