Pilot Energy (ASX:PGY) agreed revised terms with Triangle Energy (Global) (ASX:TEG) to acquire 100% of the interests in the Cliff Head oil joint venture and assets, according to a Friday Australian bourse filing.
Under the revised terms, Pilot will purchase the Western Australia-based assets of the joint venture through a vendor financing arrangement, which will see Pilot providing a secured note to Triangle worth AU$5.6 million.
The note will have a maturity date of Sept. 30, 2026, or earlier in the event of a sale of a material interest in the joint venture by Pilot to a third party. The note will accrue interest from June 30 at 10% which will be capitalized to maturity.
Pilot will also make a one-off cash payment to Triangle of AU$167,000 on August 31 in recognition of the deferred interest accrual under the note.
Subject to approval from the National Offshore Petroleum Titles Administrator, the transfer of the remaining joint venture assets and licenses located in waters offshore Australia, to Pilot will be completed at a later date.
Shares of Triangle Energy fell over 10% on market close on Friday.
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