Triangle Energy (Global) Ltd welcomes the negotiation of an updated settlement timeframe for the sale of the Arrowsmith land and facilities as part of the Cliff Head Sale and Purchase (S&P) Deed with Pilot Energy (ASX:PGY) Ltd.
The two parties have negotiated some timing changes to the payment schedule for the S&P Deed under which Pilot will acquire a 100% interest in the Cliff Head Joint Venture (CHJV).
On October 11, 2024, Pilot and Triangle reached agreement to further vary the terms of the transaction to provide the parties with additional time to complete the transfer of the first stage of the transaction.
Updated timeframe
These changes have been made to accommodate land transfers with a total of $6.5 million cash to be paid by Pilot to Triangle as follows:
In addition, Pilot will pay the full operating costs for the Cliff Head facility from October 15.
This deal also includes subsequent payments totalling $11.5 million:
- $4 million cash when NOPTA issues a Greenhouse Gas Injection Licence (the next stage); and
- up to $7.5 million in royalties from the carbon storage project.
“Well funded”
Triangle managing director Conrad Todd said: “We are pleased to have negotiated a settlement timeframe for the Sale and Purchase Agreement which will allow Pilot to secure the necessary finance.
“We are looking forward to the first payment this week and for Pilot to assume the running costs for the Cliff Head asset.
“We note that these initial payments result in Triangle being well funded for its share of the outgoings for the upcoming Becos well.”
On payment of the amounts due to Triangle on October 18 Pilot will assume responsibility for 100% of the running costs of the CHJV and shall be entitled to appoint an additional director to the board of Triangle Energy (Operations) Limited (TEO), the operator of the CHJV, thereby giving Pilot control of the board of TEO.