Ann: Triangle Sells Cliff Head to Pilot Energy, page-28

Worth throwing some numbers down that are around this deal.

CT said recently NPV of the CCS project was $150m (Resource Rising Stars Presentation 20/5) So our net NPV on the project was $60m. Pilot are paying us $7.5m plus, if the CCS proceeds, another $7.5m.

Most up to date Cliffhead Decommissioning costs are $28.7m so TEG's liability is $22.6m. (assuming they have income to claim 40% PPRT tax net cost is $13.56m.)

So
: worst case Pilot transaction doesn't proceed, CCS doesn't proceed and there is no income to offset TEG has a $22.6m liability
: mid case- CCS doesn't proceed but TEG has sold their interests. TEG has a $7.5m profit on sale.
: high case- CCS proceeds and TEG receives $15m profit

CT has shown before that he is both risk averse and prepared to jettison assets with potential in order to retain focus on the main strategy. (GAS anyone?) The opportunity to remove a potential $22m liability while still retaining some of the potential upside would have been to good an offer to refuse.

All IMO
DYOR