Triangle Energy Awaits $833K Payment as Pilot Energy Funds Cliff Head Operations

Triangle Energy Seeks Payment Amid Cliff Head Sale

Triangle Energy (ASX:TEG) has disclosed that Pilot Energy (ASX:PGY) has failed to make the second payment of $832,912 plus interest, as stipulated in their Binding Term Sheet signed in December 2024. This payment relates to the revised Sale and Purchase Deed (SPD) for Triangle's interest in the Cliff Head oil project. Triangle has now classified this missed payment as a debt requiring immediate settlement, while reserving its rights under the agreement.

Despite the missed payment, Pilot Energy has continued to fund the ongoing operational expenses of the Cliff Head project, contributing approximately $1.5 million since the start of 2025 and a total of $5.7 million since August 2024. These funds have supported both production and non-production activities, including compliance with regulatory requirements set by NOPSEMA.

Pilot Energy’s Voluntary Suspension and Capitalisation Efforts

Pilot Energy remains in voluntary suspension from ASX trading until March 5, 2025, or until it announces a capital raise. The company has cited ongoing negotiations with an existing investor to secure a capitalisation package that would enable it to complete the acquisition of Cliff Head and cover operational and regulatory costs during the transition of the project into a carbon storage operation.

These negotiations have been described as complex and prolonged, partly due to the involvement of multiple parties and the unavailability of key personnel in January 2025. Pilot Energy has kept details confidential, citing the incomplete and indefinite nature of the discussions.

Recent changes to Pilot Energy’s board, including the appointment of Alexander Sundich and Natalie Wallace as non-executive directors, signal a potential strategic shift as the company navigates this critical phase.

Triangle Energy’s Position and Outlook

Triangle Energy’s Managing Director, Conrad Todd, expressed cautious optimism despite the missed payment, noting Pilot’s continued funding of joint venture costs as required by the SPD. He also highlighted Triangle’s strong balance sheet, with $10.89 million in cash and no debt as of December 2024, positioning the company well to manage ongoing developments.

The unfolding situation underscores the delicate balance between operational funding and financial commitments in the energy sector, particularly as projects like Cliff Head transition towards new operational models such as carbon storage.