Pilot recently inked a landmark project development deal for the company’s Mid West Clean Energy Project with a powerhouse consortium of South Korean energy giants, spearheaded by Korea Southern Power Co.
The group shows strong interest in taking an equity position in the project and is backed by substantial South Korean government funding.
Although the agreement is non-binding at this stage, the partnership is expected to deliver a binding deal including front end, engineering and design plans by July.
Management sees the partnership as a major leap towards unlocking a reliable supply of clean ammonia. Korea’s energy juggernauts are already eyeing it as a crucial fuel for hydrogen co-firing in the country’s coal-fired power plants.
Not wanting to sit on its laurels, Pilot has been looking for more ways to squeeze even more value out of the project. It is about to flick the switch on a government-backed carbon capture and water treatment pilot program with cutting-edge United States tech player Capture 6.
Pilot also owns the WA-481-P oil and gas permit in the shallower offshore waters of the Northern Perth Basin.
The company recently revealed a massive 250 per cent resource uplift to 1.1 trillion cubic feet of gas at its Leander prospect within the permit, encouraging the company to begin plans for a formal farm-out process to secure an exploration funding partner.
According to management, Leander shares similar characteristics to the prolific onshore Perth Basin gas discoveries of Waitsia, Erregulla and Lockyer Deep.
Should a discovery be made at site, Pilot says the prospective resources could supply the company with enough gas to feed its planned ammonia plant for more than 30 years.
With cash now in the bank, a boardroom reinvigoration complete and strong external interest in its clean energy ambitions, Pilot appears poised for a breakout year. From traditional oil to transformative green projects, the company is straddling two energy eras as it starts what could be a lucrative low-carbon journey.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
