Warrego raises A$50mn for West Australian project
Australian explorer Warrego Energy on June 25 said it had received commitments for a A$50mn ($38mn) two-tranche placement to investors at an offer price of A$0.22/share.
The issue price of A$0.22/share represents a 10.2% discount to Warrego’s last closing price of A$0.245/share on June 23. The proceeds from the placement will be used to fund the company's 50% share of commitments for the first phase of the West Erregulla gas project in Western Australia (WA). Fellow Australian explorer Strike operates the field with a 50% interest.
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“With major offshore projects delayed, significant volumes of Waitsia gas set for export, and the undrilled South Erregulla prospect earmarked for a urea plant, Warrego’s share of West Erregulla will be one of the few new sources of gas destined for the tightening WA domestic market,” Warrego CEO, Dennis Donald, said.
Donald added that in parallel, Warrego is also developing its carbon strategy with an initial focus on West Erregulla. “We are currently evaluating a range of carbon initiatives that will help us minimise and offset emissions during the production phase,” he said.