Oz Warrego Acquires Spanish Gas Power Project
Sydney-listed Warrego Energy has agreed to acquire a minimum 50.1% indirect interest in El Romeral, an integrated gas production and power station operation located in the Guadalquivir basin in southern Spain, it said December 17 in a statement.
The El Romeral asset will be acquired by Warrego’s 85% owned joint venture, Tarba Energia. Prospex Oil and Gas owns the remaining 15% in the joint venture. Tarba has agreed to acquire El Romeral for an initial consideration of €750,000 ($835,550) from Petroleum Oil and Gas Espana, a subsidiary of Naturgy Energy Group.
Warrego and Prospex, have entered into an acquisition funding agreement whereby Warrego will fund the initial consideration and Prospex will have 90 days to elect to take up to a 49.9% interest in the project. Warrego will then take the balance. Prospex is Warrego’s partner via Tarba in the Tesorillo gas project in Spain. Both partners believe El Romeral will be highly complementary to the Tesorillo project, Warrego said.
El Romeral comprises three production licences, a 100%-owned 8.1 MW power station supplied by three producing wells, 13 prospects and multiple low-cost development opportunities with the potential to significantly increase gas production, electricity generation and revenue, Warrego said. The 13 prospects have gross contingent and unrisked prospective gas resources of 5bn ft3 and 90bn ft3, respectively.
“The acquisition is part of Warrego’s strategy of being a strong upstream player focusing on Australia and Spain and we are excited about the opportunities this acquisition will demonstrate to the market both in Europe and Australia,” managing director Dennis Donald said.