Australia-based Triangle Energy has entered into an agreement with Pilot Energy to acquire an interest in offshore Perth Basin exploration permit WA-481-P and agreed to enter into a wind & solar project joint venture.
The WA-481-P, covering 8,605km2, is immediately adjacent to, and contiguous with, the Triangle-owned and -operated offshore Cliff Head oil field.
Pilot is currently the 60 per cent owner and operator of WA-481-P and has entered into definitive agreements to acquire the remaining 40 per cent interest from Key Petroleum, subject to Pilot shareholder approval.
Upon completion of the acquisition of Key’s interest, Pilot will hold a 100 per cent interest in WA-481-P.
Triangle has entered into a binding agreement with Pilot to acquire a 78.75 per cent interest in, and operatorship of, WA-481-P, with Pilot retaining a 21.25 per cent non-operated working interest in the permit.
This transaction is conditional on Pilot acquiring Key’s interest in WA-481-P and Pilot and Triangle agreeing a revised joint operating agreement in respect of WA-481-P.
It is also conditional on a joint operating agreement in respect of the Cliff Head Wind & Solar Project Joint Venture and access agreements in respect of the Cliff Head and Arrowsmith infrastructure and operations on the area of WA-481-P.
The transfer of WA-481-P is subject to standard regulatory approvals.
The cut-off date to agree these documents and for the WA-481-P transaction to complete is 15 March 2021 (or as otherwise agreed).
Triangle Managing Director, Rob Towner, said: “We now have a significant offshore portfolio encompassing WA-31-L (Cliff Head oil field), TP-15 (Xanadu discovery) and WA-481-P, making us the dominant operator in the Offshore Perth Basin”.
He added: “In addition, we are well aware of what is happening in the energy world with many major players investing in the transition from conventional energy to renewables.
“These agreements with Pilot will facilitate Triangle’s first foray into assessing the feasibility of a renewables project that would also utilise Triangle’s existing offshore (Cliff Head platform and pipeline route) and onshore (Arrowsmith) infrastructure. This infrastructure is likely to be critical to a successful offshore wind and onshore solar project, and would be a pioneering project in Western Australia for a company of Triangle’s size”.
As consideration for the acquisition, Triangle will pay Pilot $300,000 at completion and carry Pilot’s 21.25 per cent share of costs for the first 3 years of the WA-481-P minimum work program (up to a maximum of $1.22 million based on the current minimum work program).
Upon completion of the sale of the majority 78.25 per cent interest in and transfer of operatorship of WA-481-P, Pilot and Triangle will have created substantial alignment through the newly created WA-481-P Joint Venture and the existing Cliff Head oil field Joint Venture (in which Pilot will acquire an effective 21.25 per cent interest upon the completion of the Royal Energy Acquisition).
Triangle has agreed that Pilot’s share in any oil and gas discoveries in WA-481-P will be developed and produced through the Cliff Head oil field facilities and that Pilot will have access to these facilities on the same basis as Triangle.
Cliff Head wind & solar project JV
In addition to and in parallel with the sale of the majority interest in WA-481-P, Triangle and Pilot have also agreed to form the Cliff Head Wind and Solar Project Joint Venture with Pilot owning 80 per cent and Triangle 20 per cent.
This is subject to agreeing the terms of a joint operating agreement and the WA-481-P transaction completing.
According to Triangle, the Wind & Solar JV will assess the feasibility of the development of an offshore wind and onshore wind and solar power project centred around the Cliff Head Offshore oil field production facilities, Cliff Head Alpha and the onshore Arrowsmith Separation and Processing Facilities.
Among other things, the work will encompass multitasking the existing Cliff Head oil field offshore and onshore facilities to improve their utilisation and extend their life.
It will also encompass Triangle and Pilot negotiating an access and coordination agreement to establish the basis for providing access to the existing Cliff Head Alpha Platform, the offshore/onshore pipeline right-of-way from the platform and to the onshore Arrowsmith Separation and Processing Facilities.
Pilot will be carrying Triangle’s costs in conducting the feasibility study for the development of the wind and solar power project.
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