Ann: PGY: Drilling of Wye Knot-1 Exploration Well, page-2

DRILLING OF WYE KNOT-1 EXPLORATION WELL Pilot Energy Ltd (the Company, ASX: PGY) is pleased to advise that the EP437 Joint Venture has approved the work program and budget for drilling of the Wye Knot-1 exploration well. Exploration Permit EP437 is located in the north Perth Basin, between the towns of Geraldton and Dongara. The large Dongara gas field and Jingemia/Hovea oil fields are located some 10km to the south, and the Mount Horner oil field is located 10km to the east. Wells drilled within the permit to date confirm that the surrounding petroleum system extends in to EP437.