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- Triangle Energy (TEG) sells its 78.75 per cent interest in the Cliff Head oil field JV to Pilot Energy (PGY)
- Triangle receives a total consideration of $15 million for its interest in the JV
- Both parties announced the revised agreement allows each to pursue its own energy sector strategies
- The transaction is set to be completed early next year.
- TEG is down 10 per cent, trading at 1.8 cents at 12:19 pm AEST, while PGY shares are trading steady at 2.3 cents
Triangle Energy (TEG) has agreed to sell its 78.75 per cent interest in the Cliff Head oil field joint venture (JV) to Pilot Energy (PGY).
Triangle will receive a total consideration of $15 million in staged payments of $3 million and $4.5 million in cash milestone payments, in addition to royalties from the JV of up to $7.5 million.
Both parties announced the revised agreement would allow each to pursue its own energy sector strategies.
Under the old arrangements, Pilot was supposed to increase its interest in the Cliff Head JV to 60 per cent and become the site’s full operator upon receiving National Offshore Petroleum Titles Administrator approval of a Declaration of Formation for carbon capture and storage.
Now, Pilot will acquire the remaining 78.75 per cent interest, which it does not already hold in the joint venture, via the purchase of Triangle’s operating subsidiary, which is the Cliff Head field operator.
“In the interim period between signature and consummation of the agreement, Triangle will continue to support the operation of the Cliff Head oil field and Pilot’s efforts to secure the transition to carbon sequestration,” TEG Managing Director Conrad Todd said.
“As a result of this deal, Triangle’s improved balance sheet will allow it to focus on existing and new projects including the upcoming Perth Basin drilling program.”
Triangle’s employees will continue to work at the site until the transition from oil production to the CCS project is completed.
The transaction is set to be completed early next year.
TEG was down 10 per cent, trading at 1.8 cents at 12:19 pm AEST, while PGY shares were trading steady at 2.3 cents.
