Pilot Energy Launches Dongara Data Centre and Secures $28M Funding Package

Dongara Data Centre Operational Milestone

Pilot Energy (ASX:PGY) has officially launched commercial operations at its 1 MW Dongara Data Centre in Mid West Western Australia, with the initial 0.4 MW computing capacity commissioned on 24 April 2026 and the full 1 MW module expected to be operational following an electrical upgrade. The data centre, developed in partnership with Kala Data FZCO, utilises existing gas-fired 4.4 MW generators at the Cliff Head site, positioning it among Western Australia’s top 10 live data centre facilities. The project was completed on schedule and within budget, marking a significant step in Pilot’s diversification into digital infrastructure.

Fabrication and installation work for the modular data centre were completed in Shenzhen and at the Port of Kwinana before delivery to the Dongara site. Installation included civil works, electrical connections, and commissioning managed by Pilot’s operating team. This facility complements Pilot’s broader clean energy ambitions, integrating digital infrastructure with its oil and gas operations.

Joint Development Agreement at Three Springs

In parallel, Pilot formalised a binding heads of agreement with SN Energy Australia Pty Ltd for a hybrid solar and battery energy storage system (BESS) project at the Three Springs solar development site. The agreement envisages joint development of a 50 MW data centre powered by the hybrid solar-BESS system, with Pilot to receive $10.75 million in upfront and milestone payments plus costs related to grid connection and development applications.

SN Energy will fund land acquisition originally earmarked for a stand-alone solar project. However, as of the end of the March quarter, SN Energy has not completed due diligence or definitive documentation, leaving the transaction’s completion uncertain. Pilot continues discussions with SN Energy to finalise the deal.

WA-481P Offshore Farmout Progress

Pilot’s 100% owned WA-481P offshore exploration permit, the largest Commonwealth offshore permit in the Perth Basin, remains a strategic asset. The permit covers 8,605 km² and includes the Dunsborough oil and Frankland gas fields, adjacent to prolific onshore discoveries. Pilot is actively pursuing joint venture partners through a formal farmout process focused on the Leander Gas Prospect, approximately 15 km west of the Cliff Head platform.

Following the quarter, Pilot granted Triangle Energy (Global) Limited an option to acquire a 7.5% interest in WA-481P in exchange for a $250,000 short-term loan, repayable by 30 June 2026, with an additional option for 2.5% interest contingent on further farmout success. This partial farmout arrangement indicates tangible progress in attracting partners to advance exploration.

Capital Raising and Funding Facilities

On the corporate front, Pilot completed a $3.44 million equity placement at $0.0036 per share to sophisticated and institutional investors, with attaching options and piggyback options issued as incentives. The placement was oversubscribed, reflecting investor appetite to support Pilot’s operational and corporate activities.

Additionally, Pilot secured a $25 million multi-year equity subscription facility with US-based LDA Capital Group, LLC. This flexible funding arrangement allows Pilot to draw down capital via put options over three years, subject to shareholder approvals and ASX listing rules. The facility carries a low-cost structure with a 2% facility fee and includes options issued to LDA Capital, substantially mitigating project funding risk for both the Cliff Head Carbon Storage Project and expanded data centre developments.

Strategic Partnership Negotiations and Trading Suspension

Pilot remains engaged in confidential, ongoing discussions for strategic partnerships and funding initiatives aimed at unlocking the value of the Cliff Head Carbon Storage Project. Reflecting the sensitivity and importance of these negotiations, the company voluntarily suspended trading on 2 April 2026 to facilitate orderly execution and avoid prejudicing outcomes. The Board has indicated that trading will remain suspended until definitive announcements can be made.

These strategic initiatives are critical to Pilot’s transition from traditional oil and gas operations towards carbon management and clean energy infrastructure, leveraging its existing assets and infrastructure. The company’s commitment to Environmental, Social and Governance (ESG) principles is also advancing, with plans to align disclosures to the World Economic Forum’s Stakeholder Capitalism Metrics.

Resource and Reserve Status

Pilot confirmed no changes to its carbon storage resources at the WA 31-L licence area or contingent resources in WA-481P, as previously reported. The WA-481P permit holds significant contingent oil and gas resources, including the Dunsborough oil field (up to 9.8 million barrels) and Frankland gas field (up to 58.9 billion cubic feet). Prospective resources at the Leander gas prospect exceed 1 trillion cubic feet, underscoring the exploration potential.

These resource estimates underpin Pilot’s strategic focus on offshore exploration and carbon storage development, which are central to its energy transition ambitions.

Financial Position and Cash Flow

Pilot reported net cash from operating activities of $562,000 for the quarter, supported by government grants. Investing activities consumed $2.01 million, primarily for property, plant, equipment, and loans to other entities. Financing activities contributed $1.18 million, reflecting the equity placement and loan proceeds.

Cash on hand at quarter-end was $74,000, supplemented by unused financing facilities totaling nearly $30 million, providing Pilot with an estimated 53 quarters of funding at current operating outgoings. This robust liquidity position is critical given the company’s capital-intensive projects and ongoing strategic initiatives.

Payments to related parties, including directors, amounted to $218,000 during the quarter, consistent with prior periods.

Material Risks and Outlook

Pilot outlined a comprehensive set of material risks typical for junior energy companies transitioning to clean energy, including capital requirements, exploration uncertainties, regulatory approvals, commodity price volatility, and reliance on key personnel. Notably, the transfer of legal title for the WA-31L production licence and offshore infrastructure remains subject to regulatory approval, adding an element of execution risk.

While Pilot’s progress on the Dongara Data Centre and funding arrangements are positive, uncertainties remain around the completion of the Three Springs joint development and the finalisation of strategic partnerships for the Cliff Head Carbon Storage Project. The company’s voluntary trading suspension reflects the delicate nature of these negotiations.

Overall, Pilot Energy is navigating a complex transition, balancing operational milestones in digital infrastructure and renewable energy with the challenges of offshore oil and gas exploration and carbon storage development, supported by a strengthened capital base and strategic funding partnerships.

Investors will be watching closely how Pilot manages these multi-faceted projects and funding dynamics in the coming months, particularly the outcomes of the WA-481P farmout and Cliff Head carbon storage initiatives.

$3.44 million equity placement and $25 million equity facility underpin Pilot’s recent operational and corporate advances, while the company’s voluntary trading suspension amid funding talks signals ongoing strategic negotiations.