Warrego Raises A$15mn for West Oz Drilling

Sydney-listed Warrego Energy May 25 said it will raise A$15mn (US$9.8mn) via a two-tranche placement to fund its West Erregulla drilling programme in Perth Basin in Western Australia.

“Proceeds from the placement will be used to fully fund the drilling of the West Erregulla-3 exploration/appraisal well in 2020, provide funding for long lead items for the West Erregulla-4 exploration/appraisal well, and general working capital,” the company said.

The first tranche comprising 94.9mn shares (A$12.3mn) is expected to settle on May 28 while the second tranche comprising 20.5mn shares (A$2.7m) is likely to settle in early July 2020, following shareholder approval, Warrego said.

“We are looking forward to continuing the West Erregulla exploration/appraisal programme in 2020/21. A successful WE-3 well could see the prospective resources in the northern area of the field converted to contingent resources and, possibly, the recognition of additional resources,” CEO Dennis Donald said. “It would also provide a new and more complete data set that could potentially enhance our independent contingent resource estimate for the central area of the field.”

Warrego is partnered at West Erregulla with fellow Australian explorer Strike Energy in a 50:50 equity split. Earlier this year, Warrego appointed Cathy McKeagney as general manager commercial, who will be looking after gas marketing strategy and overseeing commercial matters associated with the West Erregulla development.