Ready for relisting, Pilot Energy joins big league with 250% lift to resources

As Pilot Energy prepares to restart trading, its WA-481-P gas resource has been upgraded by about 250%, resulting in the Leander gas prospect targeting more than 1tcf
Gas potential within WA-481-P could supply over 30 years of blue ammonia production at the Mid West Clean Energy Project
Pilot has also welcomed highly experienced oil and gas executive Greg Columbus as chair, and announced revised terms with for the acquisition of the Cliff Head Oil Joint Venture assets

Special Report: Pilot Energy has brought in a significant resource update, a new chairman with deep energy experience and revised terms to acquire interests in the Cliff Head Oil Joint Venture in the run-up to relisting.

The roughly 250% increase is in the Leander Gas prospective resource within Pilot Energy’s (ASX:PGY) 100 per cent owned WA-481-P, which is one the largest offshore exploration permits in Australia and overlaps with Pilot’s 100% owned Greenhouse Gas exploration permit G-12-AP.

These permits complement Pilot’s proposed MWCEP and provide a commanding acreage position across the offshore Perth basin.

After a detailed review of offset wells, including onshore exploration and appraisal wells, plus a remapping of 2D seismic data, Pilot’s 100% owned Prospective Resource is now 1,116 billion cubic feet (gas) and 18 million barrels (condensate) mean estimate.

The upgrade means Leander has potential to provide Pilot with sufficient gas to self-support over 30 years of blue ammonia production for prospective major South Korean clients at its flagship Mid West Clean Energy Project, underpinning one of the company’s key production goals.

Pilot’s 8,605km2 permit in shallow waters off Western Australia encompasses the Dunsborough oil field and Frankland gas field. It’s also adjacent to the onshore Perth Basin oil and gas discoveries, and is potentially analogous to the prolific gas discoveries including Beach Energy’s (ASX:BPT) Waitsia, Erregulla where Strike Energy (ASX:STX) has two projects, and Minerals Resources’ (ASX:MIN) Lockyer Deep.

WA-481-P’s offshore petroleum system within WA-481-P also shares many attributes with the onshore Dandaragan Trough, a major gas producing area of the Perth Basin.

Columbus welcomed as Chairman

The resource upgrade closely follows Pilot announcing Greg Columbus as its new non-executive chairman, while Brad Lingo continues in the managing director role.

Columbus brings experience from leading large-scale projects, most recently as independent non-executive chairman of Warrego Energy (ASX:WGO) and Talon Energy (ASX:TPD), and playing a key role in recent M&A transactions.

“I’m excited to join Pilot at this pivotal time for the company,” Columbus said.

“The Company possesses a unique and excellent suite of assets in Western Australia – an area and thematic I am familiar and experienced with,” he said.

“Having previously Chaired Warrego Energy through a strong growth and transition period in this sector, I am excited by the prospects Pilot has within its portfolio.”

“Significant progress has already been made on our way to value creation, by way of securing strategic positions across our portfolio, which are yet to be fully recognised. I look forward to working with the Pilot Board, management team and all stakeholders to unlock the full potential of these assets.”

Revised Cliff Head acquisition terms

Pilot has also recently announced its revised terms agreed with Triangle Energy (ASX:TEG) for the completion of the Cliff Head Oil Joint Venture (CHJV) assets sale.

Under the revised terms Pilot will purchase the WA based assets through a vendor financing arrangement, with Pilot to provide a secured note to Triangle for $5.563 million and a maturity date of September 30, 2026.

The note will accrue interest from 30 June 2025 at 10 per cent, which will be capitalised to maturity. Pilot will make a one-off cash payment to Triangle of $167,000 on 31 August 2025 in recognition of the deferred interest accrual.

As previously announced, Pilot will pay Triangle an additional $4 million when the Cliff Head Carbon Storage project is awarded an injection licence, and Pilot will pay a royalty to Triangle of 2% of third-party revenues associated with the proposed Cliff Head Carbon Storage project, subject to an aggregate cap of $7.5 million. Pilot will also continue paying the operating costs for the Cliff Head facilities.

Lingo said reaching these revised terms was a positive development as it enabled Pilot to acquire a 100% interest in the Cliff Head Oil Field Joint Venture and associated operating assets.

“Under these revised terms Pilot can continue progressing the proposed Cliff Head Carbon Storage project, which is a key component of the broader Mid West Clean Energy Project,” he said.

Farm-out process

Pilot plans to launch a formal farm-out process to secure partner(s) to fund the near-term exploration activities. The exploration potential of the gas play fairway and the easy ability to commercialise both gas and oil discoveries via the Cliff Head offshore facilities is already attracting keen industry attention.

This is expected to heat up thanks to the expanded estimates of gas and oil prospectivity in the permit area, which is overlapped by Pilot’s 100% owned Greenhouse Gas exploration permit G-12-AP.

Pilot is also progressing three oil prospects south of Cliff Head which lie on the structural trend between the “oil mature kitchen”, and the Cliff Head oil field and Xanadu oil discovery.

The Babbler, Brahminy and Cliff Head south-west features are estimated to contain prospective oil resources of 66 million barrels (mean estimate recoverable).

These are in addition to the discovered Dunsborough contingent oil resource (2C) of 6 million barrels, and Frankland contingent gas resource (2C) of 42 Bcf gas also within WA-481-P.