Strike increases bid for Warrego
Strike Energy has put in a higher off-market bid for fellow Australian oil and gas company Warrego Energy, it said on December 19.
Strike has offered a price A$0.335 ($0.23) per Warrego share which represents a 19.6% premium to Hancock Energy’s latest proposal for the company. Strike currently has a 19.9% interest in Warrego.
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In early November, Strike bid for Warrego with an offer of A$0.186/share. Strike and Warrego are partners in EP469 in the Perth basin.
Beach Energy was also bidding for Warrego but on December 9 announced it was quitting the race. The company said it plans to focus on its existing assets in the Perth basin and accelerate commercialisation of its acreage to deliver more gas for Western Australia.
Meanwhile, Warrego said it will now consider the proposed Strike offer against the Hancock bid, to determine which is superior.
Strike CEO Stuart Nicholls said a combination of Strike and Warrego will deliver significant value accretion to both shareholders. “Should Strike achieve operational control of Warrego, Strike expects that it can accelerate, maximise and optimise the gas production, cash flows and capital, whist reducing the carbon footprint of the Erregulla domestic gas project," he said.
Strike in a separate statement announced a A$153mn financing package with Macquarie Bank to support its gas development plans.