Seven Group-backed Beach Energy has swooped in on Strike Energy’s plans to acquire Warrego Energy, which holds gas acreage in the Perth Basin.
Beach Energy has entered into a Scheme Implementation Deed (SID) with Warrego Energy Limited under which it will acquire all the issued shares in Warrego for 20c per share, plus any net proceeds received from the sale of Warrego’s Spanish assets.
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The proposed acquisition marks the first merger and acquisition activity for Beach since 2017, adding an additional development opportunity for new gas supply beyond Beach’s Waitsia Stage 2 LNG volumes and gas exploration drilling, which is soon to commence.
The ability to utilise Beach’s balance sheet and proven development expertise provides further support not only for the transaction but future gas developments in the Perth Basin.
Beach CEO Morné Engelbrecht said, “We are pleased to have reached agreement to proceed with the proposal to acquire Warrego. Beach’s cash offer represents compelling value for Warrego shareholders and provides Beach with complementary acreage in the Perth Basin.
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“We look forward to completing the transaction with Warrego. Warrego’s exciting Perth Basin gas acreage represents an additional development opportunity for new gas supply beyond Beach’s Waitsia Stage 2 project and our gas exploration drilling which will soon commence.”
Warrego Energy is focused on developing onshore assets in Australia and Spain, and holds a 50% stake in the West Erregulla gas project.
