- Warrego Energy (WGO) is finally opening up an office in Perth
- The company has held the successful West Erregulla project in the Perth Basin since 2008
- In 2018, Strike Energy bought 50 per cent of the project in a joint venture with Warrego
- Warrego CEO and Managing Director Dennis Donald will be relocating to Perth to help open up the new office
- A gas marketing expert will also be joining the company to market gas from West Erregulla this year
- Both Strike and Warrego have seen shares spike today
- Warrego shares are up just under 20 per cent and selling for 22 cents, while Strike shares are up just over 10 per cent and selling for 21 cents each
Over a decade after grabbing ahold of the Western Australia-based West Erregulla gas prospect, explorer Warrego Energy (WGO) is finally setting up shop in Perth.
The company secured full ownership of West Erregulla, located in the Perth Basin, in 2008. Then in late March 2018, fellow ASX-listed Strike Energy coughed up $600,000 to take half-control of the prospect in a 50/50 joint venture with Warrego.
Five months later, the project yielded someimpressive results for the companies. In less than the two weeks after the August success, Warrego and Strike both saw their share prices double.
While things have settled somewhat since then, Warrego shares are trading at almost quadruple the value they were at this time last year, while Strike shares are just shy of double.
Yesterday morning, Warrego told investors it is finally opening a Perth office, with CEO and Managing Director Dennis Donald relocating from the U.K. to Australia to get the office up and running. Along with the new office, a new gas marketing expert will join the company.
Cathy McKeagney will be Warrego’s General Manager Commercial based in the new Perth office. Cathy will help the joint venture begin marketing gas from West Erregulla this year.
The announcement of the new office coincided with Strike’s latest quarterly report. In the market update, Strike Managing Director and CEO Stuart Nicholls said the company has been working hard to make the most of the August discovery.
“Strike has completed one of its most formative quarters, with the production testing and resource booking at the West Erregulla gas field,” Stuart said.
“The discovery at West Erregulla has proven the existence of a deep, conventional gas fairway within the Permian sequence of the Perth Basin,” he said.
Stuart said Strike holds the larget land and equity position within the gas basin, which he touts as one of the largest, high quality, onshore conventional gas discoveries in the country.
“Strike now operates one of the largest, high quality, onshore conventional gas discoveries ever made in Australia,” he said.
Both Strike and Warrego have seen shares spike since the joint announcements. Warrego shares are trading 18.42 per cent up today at 22 cents per share, and Strike is 10.53 per cent up at 21 cents each.