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- Warrego Energy (WGO) has entered back-to-back trading halts as it gets ready to execute a capital raise
- Yesterday, the company also announced it had executed a binding heads of agreement with joint venture partner Strike Energy (STX)
- The two separate energy stocks are teaming up to develop the West Erregulla gas field in the Perth Basin of WA
- Shares in Warrego Energy will remain in a trading halt until Thursday, October 15, unless it can announce the details of the raise early
- WGO shares last traded for 24.5 cents each on October 8
Warrego Energy (WGO) shares have been placed in a trading halt after announcing an update to its Strike Energy (STX) joint venture and flagging a capital raise.
Warrego entered back-to-back trading halts last night as it gets ready to tap investors or shareholders for additional capital.
At this stage the details of the raise won’t be announced until Thursday, October 15, the last day the trading halt remains in effect.
Along with the capital raise announcement, Warrego also revealed yesterday that it had executed a binding heads of agreement with fellow energy stock Strike Energy.
The agreement between the two joint venture partners relates to the development of the West Erregulla gas field in the onshore Perth Basin of Western Australia.
Phase one development of West Erregulla, including gas processing and plant development, is subject to both parties reaching a final investment decision by the end of Q1 CY21.
Speaking about the agreement, Warrego’s CEO David Biggs said constructing a single gas processing plant for both companies would be extremely cost effective.
“The construction of a single gas processing plant provides capital and operational efficiencies to both companies as well as a smaller operational footprint,” he explained.
“Importantly, it provides greater certainty to existing and future gas customers, regulators and stakeholders and is another significant step in de-risking the
project,” he added.
Before today’s two trading halts came into place, shares in Warrego Energy were trading for 24.5 cents each on October 8.
