https://www.miningweekly.com

Strike unveils Warrego windfall

15th February 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – ASX-listed Strike Energy on Wednesday revealed that it would realise A$136-million in proceeds from the sale of its interest in takeover target Warrego Energy to suitor Hancock Energy.

Strike earlier this month bowed out of the tussle for ownership of Warrego, accepting Hancock’s increased offer of 36c a share, after Hancock had gained a 52.17% foothold in the takeover target.

Strike on Wednesday said that it had closed its off-market takeover bid for Warrego with a near 30.4% interest in the company.

The company noted that proceeds of A$136-million realised from the sale of its interest in Warrego were equivalent to an equity raise priced at 40c a share, or a 16% premium to Strike’s last closing price.

The sales proceeds, along with the company’s A$67-million of available cash and undrawn facilities meant that Strike had sufficient capital to support its next investment decision.

“Strike has never been in a better position than it is today, with imminent gas production and cash flow generation at the Walyering gasfield, having a robust balance sheet and operating the largest reserve and resource position in the Perth basin, all while local and global gas markets continue to tighten, and pricing dynamics increase in attractiveness,” said MD and CEO Stuart Nicholls.

“With two planned and funded drilling campaigns in the next 12 months, a proposed investment decision at the Erregulla domestic gas project and the opportunity to accelerate assets where known and unrecognised dormant value exists, there is a lot to look forward to for our current and newly welcomed Strike shareholders.”

He added that the company was now conducting a capital allocation review and would provide further information on the additional activities that would be funded under this acceleration strategy in due course.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION