Ann: Pivotal Carbon Capture and Storage Approval for Cliff Head, page-34

This is part, but the crux of the revised TEG/PGY agreement dated 27 July 23-
The consideration to be paid by Pilot to Triangle is expected to total approximately $15 million over the CCS project life and will be staged as follows:

1. $3.0 million cash when NOPTA issues Declaration Greenhouse Gas Storage Formation (that the Cliff Head reservoir is suitable for carbon injection);
2. $4.5 million cash when NOPTA issues a Greenhouse Gas Injection License; and 3.
Up to $7.5 million in royalties from the Carbon Sequestration project (2% Revenue Royalty from third party carbon management services)
Completion of the revised agreement is subject to the following conditions precedent:
1. NOPTA issuing the Declaration of a Greenhouse Gas Storage Formation (that the Cliff Head reservoir is suitable for carbon injection)
2. Pilot to obtain sufficient financial security to satisfy NOPTA and Triangle that it can assume the full abandonment liability for the Cliff Head oilfield in accordance with the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Additionally, NOPTA approval of the transfers of the subsidiary entities to Pilot will be required following completion.

The market for TEG has not caught up with the real impact of the approval from NOPTA yet
Massive win for both TEG/PGY.
Now when the above was written the big hurdle, was about the PGY and the ability to finance and cover the full abandonment liability.
Plenty on HC here doubted it would ever likely happen.
Since then we have had a commitment from the massive Samsung for 20% of the project for -
Consideration of circa $67 million will be paid to Pilot by CHCCS Co (a new to be incorporated joint venture project entity) at financial close which is based on historical construction costs of the Cliff Head oil project which forms the foundation assets for the MWCEP.
This consideration is subject to a minimum forecast IRR for the CH CCS
Plus there is now strong financial interest and support form other big players form Korea and Japan.

So not only do we have $3m to arrive soon without SH dilution.
I have no doubt and nor does CT at this stage that PGY will get the financial backing to support the complete handover of CH.
We will now get to bank the $3m but then 4.5m once NOPTA says yes to Pilot taking over CH operations in its entirety after they can see the financial backing and grants the injection license. Which was a originally looking like a big hurdle but not so now.

CH Field is it stands is now tired, low producing, and without doubt needs to be made into the CCS
BUT listen more importantly that huge NOOSE around our neck of roughly $30m abandonment liability goes out the door.
It completely changes TEG as an operation and company and its balance sheet moving forward. It is just a matter of time now.

The ASX will eventually wake up and appreciate just what has happened here for TEG. It has not yet.
Perhaps the market is still sceptical that it will all take place.
PGY just smashed out $4m raise today without a problem and they have absolutely NO DOUBT where this is all heading.
Our major first drill to start within next 4 -6 weeks is nearly a completely free carry to TEG as we are aware. This is also significant.
Yes the market I feel really does not get all this as well.
In the Big picture there is quite a lot to take in with TEG currently and what has just happened, not sure if many punters other than us understand it all.
We are currently 2c, completely undervalued due to my case above and I personally think we should be at 3c and higher.
AIMHO as always DYOR.
GO TEG