Pilot Energy : Half Yearly Accounts

For personal use only

PILOT ENERGY LIMITED AND ITS CONTROLLED ENTITIES A.B.N. 86 115 229 984

Interim Financial Report

For the Half Year Ended 31 March 2022

Pilot Energy Limited and its Controlled Entities

A.B.N. 86 115 229 984

Contents

For the Half Year Ended 31 March 2022

Interim Financial Statements

Corporate Directory

	Directors' Report
	Auditor's Independence Declaration under Section 307C of the Corporations Act 2001
onlyConsolidated Statement of Profit or Loss and Other Comprehensive Income
For personal use	Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors' Declaration
Independent Auditor's Review Report

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Pilot Energy Limited and its Controlled Entities

A.B.N. 86 115 229 984

Corporate Directory

For personal use only

For the Half Year Ended 31 March 2022

Directors		Bradley Lingo (Executive Chairman)
		Tony Strasser (Managing Director)
		Daniel Chen (Non-Executive Director)
		Bruce Gordon (Non-Executive Director)
Company Secretary	Cate Friedlander
Registered	and Principal	Level 1, 85 Elizabeth Street
Office		Paddington NSW 2021
		Website: www.pilotenergy.com.au
		Email: [e-mail]
Auditors		MNSA Pty Ltd
		Level 1, 283 George Street
		SYDNEY NSW 2000
Legal Advisers	Minter Ellison
		Governor Macquarie Tower
		1 Farrer Place,
		Sydney NSW 2000
		Squire Patton Boggs
		Level 17, 88 Phillip Street
		Sydney NSW 2000
Share Registry	Boardroom Pty Limited
		Grosvenor Place
		Level 12, 225 George Street
		Sydney NSW 2000
ASX Code		ASX: PGY
Legal Form of Entity	Public Company
Country of	Incorporation	Australia

and Domicile

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Pilot Energy Limited and its Controlled Entities

A.B.N. 86 115 229 984

Directors' Report

For personal use only

For the Half Year Ended 31 March 2022

The Directors present their report, together with the financial statements of Pilot Energy Limited and its controlled entities (referred to as Pilot, the Company or the Group), for the half year ended 31 March 2022 and the auditor's report thereon.

1. General information Information on directors

The directors of the company during the half year and to the date of this report are:

Executive

Mr Bradley Lingo	Executive Chairman	Appointed 12 May 2020
Mr Tony Strasser	Managing Director	Appointed 31 May 2021
Non-Executive
Mr Daniel Chen	Non-Executive Director	Appointed 15 September 2020
Mr Bruce Gordon	Non-Executive Director	Appointed 31 May 2021
Company Secretary
Ms Cate Friedlander	Appointed 22 March 2021
Ms Sally McDow	Appointed 19 February 2021	Resigned 10 December 2021

2. Operating results and review of operations for the half year Review of operations

Pilot Energy Limited is listed on the Australian Securities Exchange (ASX: PGY) and has 504,390,312 shares on issue. Pilot is currently a junior oil and gas exploration and production company that is pursuing the diversification and transition to the development of carbon management projects, hydrogen and integrated renewable energy by leveraging its existing oil and gas tenements and infrastructure to cornerstone these developments.

Covid-19 update

There has been no significant impact of COVID-19 on the company's operations.

Significant events during the period

All significant events have been announced to the ASX during the reporting period.

Financial Position

For the half year ended 31 March 2022, the Group incurred a loss of $812,379 (March 2021: Loss $1,988,358) and had a

net working capital surplus of $2,649,861 as at March 2022 (September 2021: Surplus $5,447,529).

The Group had a net cash outflow of $3,018,334 for the half year ended 31 March 2022 (March 2021: Inflow $582,759).

Dividends

The directors recommend that no dividend be provided for the half year ended 31 March 2022.

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Pilot Energy Limited and its Controlled Entities

A.B.N. 86 115 229 984

Directors' Report

For personal use only

For the Half Year Ended 31 March 2022

2. Operating results and review of operations for the half year (continued) Events subsequent to reporting date

The following events occurred subsequent to the end of the financial half year.

As per the announcement issued to the ASX on 4 April 2022, Pilot acquired an additional 40% interest in WA-481P, previously held by Key Petroleum Limited and following final approval from NOPTA. Pilot now holds 100% of the WA-481P offshore exploration permit.

As per the announcement issued to the ASX on 19 April 2022, the Cliff Head Joint Venture (CHJV) has approved an Oil Tank Upgrade and Refurbishment at a cost of $2.5 million in order to increase storage capacity to 30,000 barrels of oil.

As per the announcement issued to the ASX on 26 April 2022, Pilot and Triangle Energy have reached an agreement of key principles to restructure the existing joint venture ownership arrangements of the Cliff Head Joint Venture and the proposed Cliff Head Carbon Capture and Storage Project in order to progress an application to the National Offshore Petroleum Titles Administrator to have the Cliff Head Oil Field reservoir declared a Greenhouse Gas Storage formation. Upon successful application, the key terms of the binding Cliff Head Re-Alignment Term Sheet are as follows:

• Pilot and Triangle will restructure their interest in the WA-31L Cliff Head project resulting in Pilot holding a direct 57.5% participating interest share in CHJV (oil project) and the CH CCS Project and Triangle holding a direct 42.5% interest in both projects
• Pilot will become operator of both the CHJV and the CH CCS JV, although Triangle will continue technical operatorship of the CHJV through its oil production life.

As per the announcement issued to the ASX on 19 May 2022, Pilot has commenced activities at the Mid-West Clean Energy Project.

As per the announcement issued to the ASX on 8 June 2022, the Cliff Head Joint Venture undertook the final lifting of oil from the Kwinana Oil Terminal to BP Singapore on 8 May 2022. The CHJV will receive A$21.3M with Pilot's effective allocation being A$4.5M.

Except for the above, no other matters or circumstances have arisen since the end of the financial half year which significantly affected or could significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.

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