Pilot Energy Limited / ABN 86 115 229 984
And Controlled Entities
Leading the clean energy transition
Annual Report 2022
For the year ended 30 September 2022
Contents
Corporate and Operations Review | 6 |
Directors' Report | 22 |
Auditor's Independence Declaration | 33 |
Consolidated Statement of Profit or Loss and Other Comprehensive Income | 34 |
Consolidated Statement of Financial Position | 35 |
Consolidated Statement of Changes in Equity | 36 |
Consolidated Statement of Cash Flows | 37 |
Notes to the Consolidated Financial Statements | 38 |
Directors' Declaration | 67 |
Independent Audit Report | 68 |
Additional Information for Listed Public Companies | 72 |
Pilot Energy Annual Report 2022 | 2 |
Corporate Directory
Directors | Bradley Lingo (Executive Chairman) | |
Anthony (Tony) Strasser (Managing Director) | ||
Daniel Chen (Non-Executive Director) | ||
Bruce Gordon (Non-Executive Director) | ||
Company Secretary | Cate Friedlander | |
Registered and | Suite 301, 35 Spring Street | |
Principal Office | Bondi Junction NSW 2022 | |
www.pilotenergy.com.au | ||
info@pilotenergy.com.au | ||
Auditors | MNSA Pty Ltd | |
Level 1, 283 George Street | ||
Sydney NSW 2000 | ||
Legal Advisers | MinterEllison | Squire Patton Boggs |
Governor Macquarie Tower | Level 17, 88 Phillip Street | |
Level 40, 1 Farrer Place | Sydney NSW 2000 | |
Sydney NSW 2000 | ||
Share Registry | Boardroom Pty Limited | |
Level 8, 210 George St, | ||
Sydney NSW 2000 | ||
ASX Code | ASX: PGY | |
Legal Form of Entity | Public Company | |
Country of Incorporation | Australia | |
and Domicile |
Pilot Energy Annual Report 2022 | 3 |
Chairman's Letter
Dear Shareholder,
On behalf of the board of directors of Pilot Energy Limited (Pilot, or the Company) it is my pleasure to present the 2022 Annual Report.
The 2021/22 year has been an incredibly exciting (and challenging) year for the Company. Following a successful recapitalisation of the Company, Pilot was reinstated to the ASX Official List in August 2021. As a result, the Company commenced its clean energy feasibility studies in September 2021 assessing the feasibility and economics of the development of large-scale Carbon Capture and Storage (CCS), renewable energy and clean energy projects leveraging the Company's existing oil and gas production operations in Western Australia.
The feasibility studies were completed in March/June 2022. Each of these feasibility studies have confirmed the significant opportunity to develop a large-scale clean hydrogen production project integrating CCS and renewable energy generation to produce hydrogen and electricity for both domestic and export markets. Following these studies, the Company initiated the Mid West Clean Energy project (MWCEP) in March 2022, which involves leveraging existing brownfield infrastructure (Cliff Head Project or the Project) to enable a large-scale clean energy project. The MWCEP involves:
- carbon capture and storage: converting the Cliff Head oil project to a CCS project; and
- clean ammonia production: leveraging natural resources of the Mid West region (natural gas and renewable energy potential) to produce clean ammonia for export.
During the year Pilot has progressively expanded the Project team, with a focus on the initial CCS regulatory approval, project partners and customer engagement (CCS and ammonia) and engaging of key resources to execute the Project. CO2Tech (Pilot's CO2 storage technical adviser) and the Cliff Head Joint Venture (CHJV) technical teams (led by Pilot) have worked tirelessly to finalise the first stage of the regulatory filings for approval of the Project (which was lodged in November 2022).
In summary, the 2022 year has seen the Company consolidate its energy transition plans with the successful conclusion of key initiatives which has set the foundations for the MWCEP. These include the following:
- Completion of the clean energy feasibility studies and commencement of the Mid West Clean Energy Project;
- Key appointment of CO2Tech as Pilot's CO2 storage technical adviser, and Technip (Genesis) as the Project's owners engineer overseeing the entire MWCEP;
- Pilot and Triangle formalised arrangements (subject to regulatory approval of the application for Declaration of CHG Formation), to restructure their interests in the WA-31-L Cliff Head project, resulting in Pilot holding a direct 60% operated participating interest in both the CH JV (oil project) and the CH CCS Project, and Triangle holding a direct 40% participating interest in both projects.
- Concluding arrangements with 8 Rivers Capital, LLC. for their capital investment in the Company as well as for technical design services for the MWCEP hydrogen production facilities.
-
In November 2022, the CH JV lodged the initial Cliff Head CCS regulatory application to "Declare an identified Greenhouse Gas storage formation" across WA-31-L with the National Offshore Petroleum Titles Administrator
(NOPTA). - The CH JV announced in November, a significant upgrade to Cliff Head CO2 storage resource: 2C contingent CO2 storage resource increased ~ 50% to 9.7 million tonnes (100%).
Pilot Energy Annual Report 2022 | 4 |
Chairman's Letter
Of course, I would like to thank fellow directors, Tony Strasser (Managing director), Daniel Chen and Bruce Gordon, and Cate Friedlander (In house legal counsel and Company Secretary) and Nick Watson (Head of Commercial & Renewables) for their continued hard work as the Company progresses its plans to be a significant operator and provider of clean energy (through CCS, hydrogen and renewables projects) into Western Australia.
To our shareholders, we thank you for your ongoing support during the year.
Whilst equity markets have been extremely challenging this year, Pilot's unique underlying assets provide the foundation for the first offshore CCS project in the Mid West, and are the first stage in the development pathway for the broader MWCEP and ultimately, significant shareholder value.
Yours faithfully,
For and on behalf of the Board
Brad Lingo
Chairman
Pilot Energy Annual Report 2022 | 5 |
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Pilot Energy Limited published this content on 19 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 December 2022 03:22:05 UTC.