Triangle Energy (ASX: TEG) has refuted claims made by Pilot Energy (ASX: PGY) regarding the proposed revised terms for the acquisition of the Cliff Head oil project. Pilot Energy released details of confidential discussions, including proposed vendor financing, without Triangle Energy’s consent. According to Pilot’s announcement, the revised terms involved Triangle providing vendor financing of approximately $5-5.3 million via a secured note, maturing by June 30, 2026, or upon the sale of a significant interest (at least 25%) in the CH CCS Project. The note would bear a 10% annual interest rate. Additionally, Pilot would pay up to 30% of the proceeds from a potential sale of the Three Springs Solar Project, not exceeding the note’s value.
Triangle Energy has clarified that no agreement has been finalized, and the proposed vendor financing remains unconfirmed. Any formal agreement will be announced upon execution by both parties. Triangle’s Managing Director, Conrad Todd, expressed anticipation for a finalized deal with Pilot Energy. Triangle Energy also highlighted its strong financial position, with $10.89 million in cash and no debt as of the end of December 2024, while also looking forward to the spud of the Becos-1 well.
The disagreement centers on the premature disclosure of incomplete negotiations, highlighting the complexities of the Cliff Head project acquisition. While Pilot Energy aimed to finalize negotiations to complete their offer by March 28, 2025, Triangle Energy emphasized the need for a signed and binding agreement before any announcements are made. The uncertainty surrounding the vendor financing and the timing of potential payments underscore the ongoing challenges in securing the deal, impacting both companies’ strategies for the Cliff Head oil field.
