Pilot Energy (ASX:PGY) to buy Key Petroleum’s (ASX:KEY) 40pc interest in WA-481-P

• Pilot Energy (PGY) will acquire a 40 per cent interest in the WA-481-P exploration permit from fellow ASX-lister, Key Petroleum (KEY)
• Pilot already owns and operates a 60 per cent interest, which means if the acquisition goes ahead, it will have full ownership
• Subject to shareholder approval, Pilot will purchase the 40 per cent interest via the issue of 21 million shares over two tranches
• The oil and gas explorer believes this will complement its Mid West Wind and Solar Project, while Key will focus on other interests in the Perth and Cooper Eromanga basins
• Pilot Energy’s shares have slumped 15.7 per cent to trade for 4.3 cents. Key’s shares have ended the day with no change with shares sitting at 0.4 cents.

Pilot Energy (PGY) has moved to 100 per cent ownership of the offshore petroleum exploration license WA-481-P through an acquisition.

The junior oil and gas explorer is already the majority owner and operator with a 60 per cent interest in WA-481-P. Up until this deal, fellow ASX-lister, Key Petroleum (KEY) held the other 40 per cent which Pilot is now acquiring.

The permit is regarded as one of the largest offshore exploration permits in Australian Commonwealth waters. WA-481-P covers more than 8600 square kilometres along 250 kilometres of the offshore Western Australian coast.

WA-481-P hosts one of the highest quality offshore wind resources in Australia and covers the area where Pilot is pursuing a feasibility study for the development of its Mid West Wind & Solar Project.

“The company sees the consolidation of the ownership of WA-481-P as highly complementary to the company’s Mid West Wind and Solar Project and the new corporate strategy to focus on gas, storage and renewables,” Pilot Chairman Brad Lingo said.

“We believe that the company has the unique opportunity to bring together and integrate three critical platforms essential to the successful delivery of the energy transition,” he added.

Key considers the sale of its 40 per cent interest to be a strategic move. It will now focus on its other interests in the Perth and Cooper Eromanga basins.

Subject to shareholder approval, Pilot will purchase a 40 per cent interest in WA-481-P via the issue of 21 million shares over two tranches.

The first tranche comprises five million shares, which Pilot will issue once it enters into definitive transaction documents. The second tranche of 16 million shares will be issued if shareholders approve at a future general meeting.

Pilot Energy’s shares have slumped 15.7 per cent to trade for 4.3 cents at 3:26 pm AEST. Key’s shares have ended the day with no change, with shares sitting at 0.4 cents.