Pilot Energy has kicked off a formal courtship process to secure farm-out partners at the company’s expansive offshore gas permit in Western Australia’s North Perth Basin.
The impressive 8605-square-kilometre licence, Australia’s largest offshore exploration permit, encompasses both proven oil and gas play fairways along WA’s Mid West coast.
At the heart of Pilot’s recent exploration strategy is the Leander gas prospect, a hefty trap target with an estimated 1.1 trillion cubic feet (tcf) of prospective gas resources and a probability of drilling success ranging from 24-36 per cent.
The company says its standout Kingia sandstone target, within Leander, holds 536 billion cubic feet (bcf) of gas with a 31 per cent chance of success, mirroring the geological characteristics of onshore Perth Basin discoveries such as Waitsia, Erregulla and Lockyer Deep.
Pilot has set the stage for a competitive farm-out by establishing a dedicated data room for suitors. It expects to receive multiple requests for a look from properly endowed industry players.
The company believes that attracting a partner with the technical and commercial expertise to drill Leander will fast-track its development by leveraging its nearby Cliff Head oil platform for rapid commercialisation.
The strategic infrastructure was recently acquired from Triangle Energy to spearhead Pilot’s latest pivot into domestic gas, where demand is surging amid delays in other WA gas projects.
The company says its farm-out process dovetails with its broader vision to lead Australia’s clean energy production at the same address, where Pilot is repurposing the Cliff Head oil field into a carbon capture and storage (CCS) facility as part of its ambitious Mid West Clean Energy project. Cliff Head infrastructure includes onshore processing facilities, pipelines and the Arrowsmith production plant.
The project aims to produce blue hydrogen as up to 1.2 million tonnes per annum of clean ammonia for export to high-margin Asia-Pacific markets.
By integrating gas exploration with its CCS capabilities, Pilot says it can produce carbon-neutral gas, aligning with its existing decarbonisation goals and WA’s push for cleaner energy.
Pilot Energy managing director Brad Lingo said: “Due to the quality and extent of Pilot’s Perth Basin exploration holdings and their fast-track development potential to get direct access to the Western Australia domestic gas market, the company expects the farm-out process to be competitive. We are very focussed on bringing in partners that are focussed on the near-term drilling of the Leander prospect and bringing gas to market.”
With WA’s domestic gas market facing supply constraints and the growing need for gas to support renewable energy growth, Pilot’s drill-ready Leander prospect could offer a compelling opportunity to local established players needing a quick-to-market project.
Leander’s appeal is bolstered by its robust geological profile. Pilot’s technical team has identified multiple stacked pay targets within Kingia Sandstone at the prospect, mirroring the high-productivity reservoirs of multiple onshore Perth Basin giants.
Should exploration prove successful, the company estimates Leander could supply gas for more than 30 years, feeding Pilot’s planned ammonia plant and supporting WA’s energy grid.
The farm-out process is expected to intensify over the coming months, with Pilot aiming to secure partners to fund its drilling and exploration activities. A strategic pivot from traditional oil and gas to a diversified clean energy portfolio, underpinned by its potential farm-out permit and Cliff Head assets, could deliver a lightbulb moment for the ambitious company.
With strong market interest already evident and a clear vision for sustainable energy, Pilot is steering toward a lucrative future in WA’s dynamic energy landscape.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Andrew Todd
