- Strike Energy (STX) increases its economic interest in the West Erregulla gas project following a strategic stake in Warrego Energy (WGO)
- Strike is now Warrego’s largest independent shareholder, holding a 54 per cent interest in the company
- The further four per cent interest, acquired for around $22 million, is thought to increase Strike’s exposure to project EP469 and the West Erregulla gas project
- Funds for the acquisition stem from a recent capital raise and leave Strike fully funded for its exploration and appraisal programs in the second half of 2021
- Strike Energy last traded at 30 cents, while Warrego Energy last traded at 25 cents on July 19
Strike Energy (STX) has increased its economic interest in the West Erregulla gas project following a strategic stake in Warrego Energy (WGO).
Strike now holds a 54 per cent interest in West Erregula thanks to an 8.16 per cent strategic stake in the listed equities of Warrego, making it Warrego’s largest independent shareholder.
The further four per cent economic interest, acquired for around $22 million, is thought to increase Strike’s exposure to project EP469 and the West Erregulla gas project, which Strike considers to be valuable assets with significant potential.
Funds for the acquisition stem from a recent capital raise and leave Strike fully funded to deliver against its exploration and appraisal programs in the second half of 2021.
The company says exploration, appraisal and development activities at the sight have material long-term value and is consistent with the strategy to generate value from the Perth Basin.
Strike said it would continue to consider value accretive transactions should market conditions allow, but has no current intentions towards any future transactions involving Warrego Energy.
Strike Energy last traded at 30 cents, while Warrego Energy last traded at 25 cents on July 19.