Australia-based Pilot Energy will not be proceeding with the sale of its beneficial interest in offshore exploration permit WA-503 P offshore Australia to Black Swan Resources.
On July 27, 2018, Pilot Energy announced that it had entered into a binding agreement for the sale of its interest in the permit to Black Swan.
Under the terms of the agreement, Pilot Energy was supposed to receive a share of any net profit interest derived from the permit in return for Black Swan becoming operator and covering all costs associated with activities and management of the permit.
Completion of the transaction was subject to the satisfaction of certain conditions precedent, including approval of the transaction by the National Offshore Petroleum Titles Administrator (NOPTA).
However, NOPTA has not approved the transfer of the interest to Black Swan. Consequently, on December 18, 2018, Black Swan advised Pilot Energy that it was terminating the sale agreement.
Pilot Energy and Black Swan will continue to work together as joint venture partners in the permit.
Spokesman and CEO for Pilot Energy, Robert Gard, commented: “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.”