Strike increases ownership of Warrego to 19.9%
Strike Energy on December 7 announced it is increasing its stake in Warrego Energy, which is subject to an ongoing takeover battle, to about 19.9% via the swap of its shares for Warrego shares at a 1:1 share exchange ratio.
Post settlement of the share swaps, Strike will become Warrego’s largest shareholder and will increase its direct and indirect ownership of EP469, which contains the West Erregulla gas field in the Perth basin, to approximately 60%.
Australian billionaire Gina Rinehart’s Hancock Energy and Beach Energy have been looking to acquire Warrego.
Strike said it has not formed any intention with regard to any future transaction that may involve Warrego, and is currently considering all available strategic options.
“Strike has a strong track record of identifying and securing valuable and strategic energy assets at various stages of maturity. The expansion of our ownership of Warrego shares and the resulting look through to an increased economic interest in the West Erregulla gas field is a further demonstration of this,” Strike CEO Stuart Nicholls said.
Strike was the first to bid for Warrego in early November with an offer of A$0.186/share. Strike and Warrego are partners in EP469 in the Perth basin.