Pilot Energy Cancels Oz Permit Sale

Australian explorer, Pilot Energy, said December 19 that it will not proceed will its proposed stake sale in the permit offshore Western Australian, WA-503 P, to Black Swan Resources.

The decision to terminate the agreement, that was signed in July this year, was taken because regulator, the National Offshore Petroleum Titles Administrator (NOPTA), did not approved the transfer of the interest to Black Swan, Pilot said.

According to Sydney-based Pilot, completion of the transaction was subject to the satisfaction of certain conditions precedent, including approval by NOPTA. "Consequently, on 18 December 2018, Black Swan advised Pilot Energy that it was terminating the sale agreement," it said.

Pilot CEO said, "While the divestment of WA-503-P was consistent with our strategy of focusing on lower cost assets which can more quickly brought into production, we still see significant prospectivity in the permit. The cancellation of the transaction also comes at a time when acquisition of a large, multi-client 3D seismic survey is about to commence in the area in and around the permit. This activity is expected to raise interest in the region and assist in the process to find potential partners to join us in the permit."