The ammonia would be used for hydrogen cofiring in coal-fired power plants in Korea.
Triangle recently transferred its remaining 78.75 per cent interest in Cliff Head, within the renowned Perth Basin and known for several significant discoveries, to Pilot in exchange for a secured $5.563 million promissory note.
Recent revised sale terms allowed Pilot to convert existing debt to Triangle into a secured note, which matures on September 30, 2026. Interest will accrue from June 30 at 10 per cent and will be capitalised to maturity.
The ownership of all the joint venture’s onshore and offshore assets in the state’s jurisdiction has been transferred to Pilot. The National Offshore Petroleum Titles Administrator is expected to transfer the ownership of any project pipelines in Commonwealth waters in due course.
Triangle stands to boost its cash position from the secured note funds due next year from the Cliff Head sale. It will also receive a one-off $167,000 payment on August 31, recognising deferred interest accrued under the secured note.
It will receive a further $4.5 million when Pilot receives a greenhouse gas injection licence and up to a further $7.5 million in royalties from the project.
Triangle will continue to hold full security over Pilot and its subsidiary company, Royal Energy, until the debt is repaid in full.
Pilot plans to repurpose the depleted Cliff Head oil well into a facility capable of storing liquefied carbon emissions from WA’s industrial emitters. The company will create a carbon storage business, charging third-party emitters, to add to its clean energy ammonia project arsenal.
Now cashed up and on the hunt for some ‘big dogs’ to add grunt to its Mid West Clean Energy project, Pilot may be worth watching.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
