Pilot Energy Nets $3.9M PRRT Refund Linked to Oil Field Closure

Pilot Energy’s Tax Refund Boosts Cash Flow

Pilot Energy Limited (ASX – PGY) has announced the receipt of a substantial Petroleum Resource Rent Tax (PRRT) refund amounting to nearly $3.9 million. This refund stems from abandonment, decommissioning, and rehabilitation expenditures (ADRE) related to the cessation of oil production at the Cliff Head Oil Field off Western Australia.

The refund was processed through the operating company of the Cliff Head Oil Joint Venture, Triangle Energy Operations Pty. Ltd., and paid in full to Pilot Energy under the terms of a Purchase and Sale Agreement with Triangle Energy (Group) Ltd. This payment marks a significant cash inflow for Pilot, reflecting the financial benefits of managing the closure phase of the oil field.

Additional Refunds and Ongoing Decommissioning

Beyond the initial refund, Pilot anticipates further PRRT refunds totaling up to $600,000 from other joint venture parties. These are expected to be claimed shortly, with draft returns prepared for lodgment by the end of August 2025. The company’s ability to secure ongoing funding facilities for these refunds as ADRE continues will be critical to managing the financial demands of the field’s closure.

Strategic Shift to Clean Energy

While the Cliff Head Oil Field has ceased production, Pilot Energy is actively transitioning the site’s infrastructure toward a pioneering carbon capture and storage (CCS) project. This initiative aims to convert the offshore oil field into Australia’s first offshore CO2 storage facility, forming a core part of the Mid West Clean Energy Project. This strategic pivot aligns with Pilot’s broader vision to diversify into carbon management, hydrogen, and clean ammonia production for export to emerging Asia-Pacific clean energy markets.

Holding a 21.25% interest in the Cliff Head Oil Field; with plans to increase to 100% upon completion of acquiring Triangle Energy (Global) Pty Limited’s interest; Pilot is well positioned to leverage existing assets in this energy transition. The company’s evolving portfolio reflects a growing trend among junior oil and gas players to embrace sustainability while managing legacy operations.

Looking Ahead

As Pilot Energy navigates the complexities of decommissioning and clean energy development, the financial and operational outcomes of these efforts will be closely watched by investors. The receipt of the PRRT refund provides immediate financial relief, but the success of the CCS project and the company’s ability to manage ongoing costs will be pivotal in defining its future trajectory.