Acquisition and significantly revised estimates see Warrego target billion-dollar growth
Australian takeover brings jobs, investment and expansion.
Aberdeen based Warrego Energy have taken the next steps in their ambitious growth strategy that will see them poised to become a billion-dollar company.
The acquisition of Petrel Energy (ASX:PRL) by reverse takeover will see Warrego acquire 77% of the enlarged organisation creating 25 jobs and pick up additional oil and gas real estate in West Australia, Southern Spain and Uruguay.
Dennis Donald, Warrego Energy Managing Director: "Things are really starting to move for Warrego. The acquisition of Petrel (ASX:PRL) which we are aiming to complete in early March and a planned AIM listing later in 2019 will give us access to stock market investors keen to exploit the massive potential of the Perth Basin and beyond."
In addition, recent seismic reprocessing of Western Australian asset West Erregulla has confirmed an increased pre-drill estimate of gas in place to the point where it is now one of the largest pre-drill conventional onshore prospects in Australia. The un-risked total prospective resource estimate is 1.16 TCF (best), with a prospective gross play range of 761 BCF (low) to 1.67 TCF (high).
Donald: "The fantastic news about the revised resource estimates comes just as our partners in West Erregulla, Strike Energy (ASX:STX) have signed a contract to secure one of the biggest and most powerful rigs in Australia to drill our first exploration well in May.
To put this into perspective, EP469 is potentially larger than Total’s recent West of Shetland discovery, Glendronach (1 TCF), onshore and somewhat easier to extract conventional gas. We are 16km from former Australian independent AWE’s Waitsia field where the exploration well nearest to us hit one of the highest ever flow rates in Australian history; 90 MMcfd. Seismic interpretation on EP469 has identified reservoir characteristics very similar in nature and quality to Waitsia, making it a game changer for us. AWE was bought by Mitsui for AU$602 million in the early part of 2018."
Press release ends.
Notes for editors
- Warrego Energy Limited was founded in 2007 by Dennis Donald and Duncan MacNiven.
- Warrego Energy Limited is a private company registered in Scotland. Its wholly owned subsidiary Warrego Energy Pty Ltd is registered in Western Australia.
- Onshore Exploration Permit EP469 was awarded to Warrego Energy 100% in April 2010. It is situated 230km north-east of Perth in the North Perth Basin and comprises an area of 224km2, roughly the size of an offshore block in the UKCS
- Warrego worked with the relevant authorities, the indigenous community and other key stakeholders to secure approval to undertake a 3D seismic campaign in Q4 2014. The subsequent processed seismic data revealed significant prospectivity.
- Warrego farmed out 50% of EP469 and operatorship to Strike Energy Limited (ASX:STX) in June 2018.
- Strike will fund the cost of drilling and completing one exploration well within the Permit and carrying out related G&G Studies and G&A costs, up to a maximum expenditure amount of A$11M within the next six months. Well is due to be spudded in May 2019.
- The above estimated quantities of hydrocarbons that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates are un-risked and have both an associated risk of discovery and a risk of development.