Pilot Energy Limited (ASX:PGY), a junior oil and gas exploration and production company transitioning to carbon management projects and clean energy production, has announced the receipt of a $3.9 million Petroleum Resource Rent Tax (PRRT) refund. The refund was processed through Triangle Energy Operations Pty. Ltd. (TEO), the operating company for the Cliff Head Oil Joint Venture.
The refund represents the full amount claimed by TEO for abandonment, decommissioning, and rehabilitation expenditures (ADRE) following the cessation of oil production at the Cliff Head Oil Field. Pilot Energy previously indicated in its June Quarterly Activity Report that the total PRRT refund for the financial year ending 30 June 2025 was estimated to be up to $4.5 million, inclusive of other Cliff Head Oil Field JV parties.
Under the Purchase and Sale Agreement (PSA) with Triangle Energy (Group) Ltd (TEG), Pilot Energy is entitled to 100% of the PRRT refunds recoverable by the Cliff Head Oil Field JV parties. The initial refund was received by TEO and subsequently transferred to Pilot Energy.
Pilot Energy anticipates receiving additional PRRT refunds, estimated at up to $600,000, from other Cliff Head Oil Field JV parties. TEO has submitted draft PRRT returns to TEG for lodgement by 29 August 2025. These additional refunds are also to be paid fully to Pilot under the PSA. Pilot is exploring opportunities to secure ongoing funding for ADRE costs related to the closure of the Cliff Head Oil Field as it transitions to a carbon capture and storage (CCS) project.
