Strike hikes stake in West Erregulla gas project
Strike Energy has increased its interest in the West Erregulla gas project to 54% via the acquisition of an 8.16% strategic stake in its partner Warrego Energy, it said on July 20. Previously, Strike and Warrego each had a 50% interest in the project.
Strike said the company’s board of directors considered that the increase of a further 4% interest for about A$22mn ($16mn) “represented an attractive transaction to increase its exposure to EP469, and the West Erregulla gas project, which it considers to be valuable assets with significant potential”.
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The company has not formed an intention with regards to any future transaction that may involve Warrego. Strike said it is comfortable with the level of investment in Warrego at this time and will continue to consider value accretive transactions from time to time should market conditions allow.
“As the single largest shareholder in Warrego independent of board and management, Strike looks forward to working with the Warrego board in order to maximise long-term value for Warrego shareholders whilst honouring the inherent low-cost profile of the primary asset,” it said.