- Strike has closed its off-market takeover bid for Warrego finishing with ~30.4% of the total Warrego shares on issue.
- Strike will now accept Hancock’s cash offer of $0.36 per Warrego Share which will realise $136 million in proceeds to Strike. The proceeds generated are equivalent to an equity raise at approximately 40 cents(1) per Strike share or a 16% premium to Strike’s last closing price of $0.345.
- In conjunction with the $67 million of available cash and undrawn facilities as at Q4/22, Strike will have a total of $203 million of available funding with a further $80 million in an uncommitted domestic gas development facility to support its next investment decision.
- Strike will now proceed to accelerate its Perth Basin focussed strategy across its portfolio of highly attractive domestic gas, fertiliser and renewable energy assets.
Strike Energy has announced its off-market takeover bid for Warrego Energy has now closed.
As at 15 th February 2023, Strike owned or controlled ~30.4% (377,040,765) of Warrego’s shares. As per its revised intentions,(2) Strike will proceed to vend all Warrego shares owned or controlled by Strike into the unconditional Hancock Energy cash offer of $0.36 per Warrego share. As a result, Strike will receive $136 million in proceeds which is the equivalent of Strike conducting an equity capital raise at $0.40 per Strike share or a 16% premium to Strike’s last closing price of $0.345.
The decision to accept Hancock’s offer and receive a substantial and certain funding injection provides clarity on the development pathway for the Greater Erregulla gas resources. Strike looks forward to working with its new joint venture partner in Hancock as the controller of the Warrego share of the West Erregulla gas field in EP469 where Strike is the operator and owns the other 50% of equity.
With the advent of securing the $153 million of domestic gas financing via Macquarie Bank Limited, Strike will have $203 million of cash and available undrawn facilities(3) and a further $80 million in an uncommitted domestic gas development facility to support the acceleration of its gas, fertiliser and renewables strategy and execute its next final investment decision.
Strike is currently conducting a capital allocation review and will provide further information on the additional activities that will be funded under this acceleration strategy in due course.
Statements from the Managing Director & Chief Executive Officer of Strike, Stuart Nicholls:
'Strike has never been in a better position than it is today, with imminent gas production and cash flow generation at the Walyering gas field, having a robust balance sheet and operating the largest reserve and resource position in the Perth Basin, all whilst local and global gas markets continue to tighten, and pricing dynamics increase in attractiveness.'
'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'.
Source: Strike Energy
