Strike Energy Limited (ASX: STX) continues to increased ownership of Warrego Energy Limited (ASX: WGO) and the West Erregulla gas field in Western Australia.
Strike has entered into Share Purchase Agreements with various Warrego shareholders to increase its shareholding in Warrego to ~19.9% via the swap of Strike ordinary shares for Warrego ordinary shares at a 1:1 share exchange ratio. Strike will have the voting rights to ~19.9% of Warrego.
Post settlement of the share swaps, Strike will become Warrego’s largest shareholder and will increase Strike’s direct and indirect ownership of EP469, which contains the West Erregulla gas field and near field low risk upside, to approximately 60%.
Managing Director and CEO of Strike, Stuart Nicholls, said the company’s Board has not formed any intention with regards to any future transaction that may involve Warrego, and Strike is currently considering all available strategic options.
Strike has a strong track record of identifying and securing valuable and strategic energy assets at various stages of maturity. The expansion of our ownership of Warrego shares and the resulting look through to an increased economic interest in the West Erregulla gas field is a further demonstration of this,” Mr Nicholls said.
Settlement of Share Swaps
Settlement of the share swaps will be by way of off-market transfers and is expected to occur within the next week, at which time the Strike consideration shares will be issued and application will be made for their quotation on the ASX.