Pilot Energy (ASX:PGY) secures second Perth basin

Published at Nov 4, 2015, in Energy

Pilot Energy (ASX:PGY) has struck a deal with Caracal Exploration Pty Ltd to acquire Caracal’s 13% interest in exploration permit EP437 which is located within the Northern Perth Basin.

This comes on the back of independent report conducted by Gaffney, Cline and Associates about the oil potential at its deepwater WA-507-P permit which has added upward of 3.5 billion barrels of oil to its menu.

The deal with Caracal not only strengthens PGY’s position in the region, but is also in line with its acquisition strategy over the past 12 months.

PGY Chairman Gavin Harper said, “This transaction represents Pilot Energy’s fourth acquisition in under a year, all of which provide shareholders with exposure to quality petroleum exploration assets under favourable commercial terms. We look forward to working with our new joint venture partners, Key Petroleum and Key Resources in exploring the permit.

The Permit is located on the west of the northern Perth Basin, between Gerladton and Donbgara. It is 10km to the north of the Dongara gas field and Jingemia/Hovea oil fields, and 20km to the north of the Cliffhead oilfield.

PGY’s EP437 acquisition is a strategic, low cost play

Several wells have been drilled to date and PGY’s preliminary interpretations suggest the presence of a number of shallow-depth prospects.

PGY sees the acquisition as a strategic fit as it provides the Company with participation in low cost onshore oil and gas exploration in a region in which even small oil discoveries have commercial potential.

The Permit offers mid-term drilling opportunities, at low cost with the potential for future expansion.

The assignment of interest in EP437 to PGY is conditional upon the approval of the WA Dept. of Mines & Petroleum. Upon completion of the assignment, the joint venture interests will be:

  • Key Petroleum (ASX:KEY) 43.471% (operator)
  • Rey Resources (ASX:REY) 43.471%
  • Pilot Energy (ASX:PGY) 13.058%

For PGY this is a low cost entry acquisition with minimal financial commitments.

tags

Oil

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Facebook
Twitter
LinkedIn