SYDNEY: Pilot Energy Limited has entered into a definitive share sale deed to acquire 100% of the shares of Royal Energy Pty. Ltd. against 143.939million Pilot shares, a news release said.

Royal Energy is a privately owned Australian oil and gas company. The Acquisition is subject to the approval of Pilot shareholders which will be sought at an extraordinary meeting of shareholders expected to be held in early November 2020.

 Royal Energy holds an indirect 21.25% interest in the Cliff Head Oil Field Joint Venture (CHJV) through 50% ownership of Triangle Energy (Operations) Pty. Ltd (TEO). TEO is the operator of the Cliff Head Joint Venture and owner of 42.5% interest in the Cliff Head Oil Field Joint Venture. Through the 50% ownership of TEO, Royal Energy holds joint operational control of the CHJV and holds 50% of the Board seats for TEO.

Royal Energy’s other assets also include approximately $1 million in cash and a holding of 5.208 million shares in Vintage Energy Limited.

Pilot’s Chairman, Brad Lingo, said “We are pleased that the Equity Placement was supported by a diverse group of institutional and sophisticated investors, the majority of which are new to the Pilot share registry. With the funds raised from this transaction, potentially bolstered by additional capital from a Share Purchase Plan, the Company is now fully funded to pursue the feasibility study for the Mid West Wind and Solar Project and capex at Cliff Head designed to extend to life of this highly strategic asset. Importantly, with the additional working capital, Pilot now has sufficient runway to allow it to add significant value to these exciting projects”.

Regal Energy’s CEO, Tony Strasser, said “Royal Energy is pleased with the Acquisition and excited by the complementary asset base the combination provides. The highly prospective WA-481-P exploration permit surrounding Cliff Head greatly improves the scope of the Cliff Head life extension project, whilst simultaneously enabling the Company to capitalise on the energy transition with the exciting Mid West Wind and Solar Project.”“The Acquisition provides shareholders the opportunity to realise the significant latent value of the CHJV’s infrastructure.”

[email protected]