Pilot Energy Secures $5.9M PRRT Facility and Environmental Approval for 3D Seismic Survey

Exploration Momentum in the Perth Basin

Pilot Energy Limited (ASX, PGY) has taken a decisive step forward in its offshore exploration ambitions with the receipt of environmental approval from NOPSEMA to conduct the Eureka 3D seismic survey. Covering approximately 400 kilometres, this survey targets the Leander Gas Prospect and the Kingia Gas Play fairway within the WA-481P permit, Australia's largest offshore exploration license in the Perth Basin.

The approval follows nearly three years of regulatory and community engagement, underscoring the project's significance and Pilot's commitment to responsible exploration. The seismic data acquisition is a mandatory work program commitment and is expected to provide critical subsurface insights that will not only advance oil and gas exploration but also support the adjacent Cliff Head Carbon Storage Project.

Farmout Process and Strategic Partnerships

Building on this momentum, Pilot has progressed its formal farmout process to attract high-quality joint venture partners with technical and commercial expertise. The focus remains on proving up the substantial 1.1 trillion cubic feet prospective gas resource at Leander and exploring additional gas potential across the Perth Basin. The company is in advanced stages of shortlisting interested parties, aiming to secure a preferred farminee by year-end.

In parallel, Pilot has formed a strategic joint venture with Kala Data FZCO to develop a modular data centre at the Arrowsmith Production Facility. Leveraging underutilised gas-fired generation capacity, the initial 1 MW data centre installation is planned for early 2026, with potential expansion to 4 MW and beyond. This initiative aligns with Pilot's broader clean energy transition strategy, aiming to generate early cash flow and support operational costs through innovative infrastructure use.

Financial Strengthening Through PRRT Refunds and Convertible Notes

On the corporate front, Pilot secured a $5.9 million PRRT refund debt financing facility with Finport Finance Pty Ltd to fund abandonment, decommissioning, and rehabilitation expenditures (ADRE) for the Cliff Head Oil Field through to 2027. This facility enables ongoing project expenditures to be financed as incurred, backed by expected PRRT refunds from the Australian Tax Office.

Additionally, the company received a $3.9 million PRRT refund for the 2025 tax year and issued $1.8 million in convertible notes under a syndicated facility with Discovery Investments Pty Ltd. These financial arrangements provide Pilot with liquidity and flexibility as it navigates the operational transition from oil production to carbon storage and clean energy projects.

Progress on Carbon Storage and Clean Energy Projects

Regulatory engagement continues for the Cliff Head Carbon Storage Project, with Pilot preparing to lodge an application to amend its Declaration of Storage Formation to increase storage and injection capacity. The company is also advancing an independent technical study with a Korean consortium for its Clean Ammonia Project, targeting government approvals and investment decisions in early 2026.

Meanwhile, the sale process for the DA-approved 376 MW Three Springs Solar Project is ongoing, with several parties engaged and a binding sale agreement anticipated in the coming quarter. This divestment is expected to provide significant capital to support Pilot's strategic objectives.

Outlook

Pilot Energy is clearly positioning itself at the intersection of traditional hydrocarbon exploration and the emerging clean energy economy. The combination of exploration advances, strategic partnerships, and robust financing arrangements provides a solid foundation for the company’s transition and growth. However, the outcomes of the farmout process, regulatory approvals, and project sales will be critical to watch in the near term.