PERTH (miningweekly.com) – ASX-listed Warrego Energy will raise A$15-million through a two tranche share placement to institutional and sophisticated investors to fund drilling at its West Erregulla assets, in Western Australia.
The first tranche will consist of 94.9-million shares issued under the company’s existing placement capacity, while the second tranche of 20.5-million shares will settle in early July, subject to shareholder approval.
The shares will be issued at a price of 13c each, representing an 18.8% discount to the company’s last closing price on May 20, and a 15.6% discount to the 15-day volume weighted average share price.
“Strong demand from a range of new and existing institutional shareholders and sophisticated investors reflects growing interest in the potential of the West Erregulla gasfield following delays in the timing of some large liquefied natural gas projects offshore Western Australia,” said Warrego Energy CEO and MD Dennis Donald.
“We are looking forward to continuing the West Erregulla exploration and appraisal programme in 2020/21. A successful West Erregulla 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.
“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.”