PERTH (miningweekly.com) – ASX-listed Warrego Energy has raised A$32-million through a two tranche share placement to fund drilling at the West Erregulla gasfield, in the Perth basin.
The first tranche of the share placement consisted of 124-million shares, placed at a price of 21c each under the company’s existing placement capacity, to raise an initial A$26-million.
A second tranche placement of 28.6-million shares, to raise a further A$6-million, will be subject to shareholder approval at a meeting scheduled for November 25.
“Strong support from institutional investors is indicative of the confidence in Warrego’s business strategy and future growth potential following the recent announcement of a landmark gas sales agreement and joint venture alignment. We are looking forward to the results from the current drilling campaign which have the potential to further enhance our view of West Erregulla’s reserves and resources,” said Warrego MD and group CEO Dennis Donald.
Warrego and joint venture partner Strike Energy recently inked a binding heads of agreement for the joint development of West Erregulla, which provides a pathway for the Phase 1 development of the project, including gas processing and plant capacity, gas balancing and sales, and optimisation of timing and alignment of critical activities including a final investment decision and the current appraisal of drilling campaign.