Pilot Energy to acquire 100% of wind & solar project
Pilot Energy Limited has
moved to acquire complete ownership in Offshore Petroleum Exploration License
WA-481-P. Having already having a 60% interest, Pilot Energy is now seeking
full ownership, acquiring the remaining interest from Key Petroleum Ltd.
It represents one of the largest offshore exploration permits in Australian
Commonwealth waters and covers 130 graticular blocks, extending from north
of Oakajee, Western Australia to south of Cervantes, Western Australia
and covering over 8,600 km2, along approximately 250 km of the offshore
Western Australian coast.
WA-481-P contains one of the highest quality offshore wind resources in
all of Australia and as was announced on the ASX on 4 September 2020, covers
the area where Pilot Energy is pursuing a feasibility study on the development
of the Mid West Wind & Solar Project.
The aim for the project is to develop a major offshore wind farm located
in the area of Offshore Exploration Permit WA-481-P and to combine this
development with an onshore solar farm to deliver a large scale source
of low cost green energy on a sustainable basis.
The area has been determined to have an annual mean wind speed greater
than 9 m/s at a hub height 100 meters. The eastern boundary of WA481-P
is approximately 10 km offshore in relatively shallow water depths ranging
between 20 to 40- meter water depth along the entire eastern portion of
the permit from 10 km to 30 km offshore. Of the 8,600 km2 permit area,
over 7,600 km2 (88%) area is in water depths of 60 metres or less.
Subject to shareholder approval, Pilot Energy will acquire the remaining
40% interest in WA-481-P in return for issuing to Key 21 million shares
– in two tranches and initial tranche of 5 million shares to be issued
upon entering into definitive transaction documents and a further 16 million
shares upon Pilot Energy receiving shareholder approval which will be sought
at an extraordinary general meeting of shareholders to be called following
the execution of definitive transaction documents.
WA-481-P also covers a very large area over the offshore extension of the
Northern Perth Basin, on trend with numerous oil and gas discoveries. WA-481-P
is well covered by both 3D and 2D seismic data, which confirms the presence
of fourteen structural prospects across a variety of geological plays,
three of which have been identified as priority targets for future exploration.
The primary petroleum plays are for oil and/or gas within the Dongara Sandstone
and the Irwin River Coal Measures. Both oil and gas are proven within the
permit, with the Frankland gas and the Dunsborough oil discoveries.
Pilot’s Chairman, Brad Lingo, said: “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. The high quality offshore wind resource,
the existing offshore facilities and onshore electricity and gas infrastructure
and the very large conventional gas discoveries in the North Perth Basin
point to the potential to combine all these elements into the development
of a World class renewables and low carbon energy and resource precinct.
"As the Company previously announced, 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.
“Focussing on bringing these elements together around the Mid West Wind
and Solar Project provides the opportunity to deliver strong growth and
significant shareholder value”.
