Pilot Energy (ASX:PGY) shares jump 62pc on exploration licence renewal

• Shareholders in Pilot Energy (PGY) saw a 61.9 per cent bump in their holdings on Friday after the company renewed its WA-481-P exploration permit
• Pilot Energy holds a 60 per cent interest in the license, which covers approximately 200 kilometres of the offshore Western Australian coast
• The renewal comes with a five-year work program, which includes geological and geophysical studies, 2D seismic reprocessing and an exploration well in the fifth year
• The region has delivered substantial success in recent years, with major oil and gas discoveries made immediately adjacent to the WA-481-P license area
• Pilot Energy shares are steady at the start of a new week of trading, priced at 3.4 cents

Shareholders in Pilot Energy (PGY) saw a 61.9 per cent bump in their holdings on Friday after the company renewed its WA-481-P exploration permit.

The five-year renewal was issued by the Australian Government National Offshore Petroleum Titles Administrator (NOPTA) and relates to Pilot’s 60-per-cent-owned offshore oil and gas exploration permit in Western Australia.

The license area covers the majority of the North Perth Basin, which extends 200 kilometres from Oakajee to Cervantes and is comprised of 130 graticular blocks.

WA-481-P’s position in the North Perth Basin is on-trend with a number of oil and gas discoveries, particularly within the Dangara Sandstone and the Irwin River Coal Measures.

Pilot’s licence renewal also comes with a five-year work program, which outlines geological and geophysical studies, 2D seismic reprocessing, and 2D and 3D seismic acquisition throughout the first three years.

In addition, the program allows for an exploration well in the fifth year, which is expected to cost $15 million — of which the company will fund 60 per cent, pursuant to its ownership.

Brad Lingo, Chairman of Pilot Energy, said the renewal of WA-481-P is highly complementary to the company’s broader strategy that focuses on gas, storage and renewables.

“With the very large conventional gas discoveries made in the North Perth Basin over the last three years in onshore areas of the North Perth Basin and historical oil and gas discoveries made immediately adjacent to the permit, this is leading to a reinvigorated focus on the overall potential of the North Perth Basin,” brad commented.

“Pilot’s existing footprint and operatorship of WA-481-P and shareholder and experience base provides a unique opportunity to participate in the energy transition focusing on both the gas potential within WA-481-P but also to combine this with a focus on the renewable energy potential of the area,” he added.

Pilot Energy shares are steady at the start of a new week of trading, priced at 3.4 cents at 10:29 am AEST.