Join our daily newsletter At The Bell to receive exclusive market insights
- Warrego Energy (WGO) tables its June quarterly report, showing it spent the period focussed on its West Erregulla joint venture
- WGO and Strike Energy (STX) each have a 50 per cent stake in the gas fields, which are located onshore in the Perth Basin
- Warrego cased WE-4 during the quarter and reached total depth at WE-5, with both drilled faster and cheaper than WE-2 and WE-3
- The company ended June with $13.7 million in the bank, which is set to be topped up via a $50 million capital raise
- WGO shares ended Thursday up 1.96 per cent at 26 cents each
Warrego Energy (WGO) has tabled its June quarterly report, showing it spent the period focussed on its West Erregulla joint venture.
WGO and Strike Energy (STX) each have a 50 per cent stake in the gas fields, which are located onshore in the Perth Basin of WA.
The energy stocks cased the WE-4 well during the quarter and reached a total depth of 5015 metres at WE-5.
Warrego said pleasingly, both of the wells were able to be drilled faster and cheaper than WE-2 and WE-3.
Since the end of the June quarter, the company has begun flow testing WE-4, hitting a sustained gas flow rate of 35 million standard cubic feet per day.
Water was then found in WE-4 for unknown reasons. WGO said upcoming flow testing at WE-5 may help solve the issue of where the water came from.
Financially, WGO finished June with $13.7 million worth of cash in the bank, which is set to be topped up via a $50 million capital raise.
The funds from that capital raise will go towards long-lead items for West Erregulla and the re-entry and completion of the WE-3 well.
Looking ahead, WGO said it was in advanced discussions with three banks to provide up to $75 million in financing for West Erregulla.
The energy stock has also begun making payments for the construction of the gas processing facility for West Erregulla, which will enable phase one of the project to maintain its mid-2023 targeted first gas date.
Warrego Energy ended Thursday up 1.96 per cent at 26 cents per share, following the release of today’s June quarterly report.
