Ann: Hancock Offer - Completion of despatch of bidder's statement, page-6

From the Bidder’s Statement of Hancock:

Strike Energy has pre-emotive rights in WE but not if WGO board recommends another offer.

——-

Hancock notes that there is a risk that, notwithstanding an initial Warrego Board recommendation of the Offer, Strike seeks to assert rights under the pre-emptive rights regime under the JOA. While Hancock is confident that Strike is not legally entitled to exercise any pre-emptive rights under the JOA in such circumstances, there can be no assurance that Strike will not seek to commence action against Warrego to exercise any rights or that it will not ultimately succeed in any action or some other settlement related to such action. In the unlikely event that those circumstances arise, Warrego (and Warrego Shareholders who remain as Warrego Shareholders) may be exposed to an action by Strike. While Hancock is confident that Strike is not legally entitled to exercise pre-emptive rights under the JOA if the
Warrego Board recommends the Offer, were Strike successful in an action to acquire Warrego’s participating interest under the JOA, it will be entitled to acquire that participating interest at market value, based on the amount in cash a willing buyer would pay a willing seller in an arm’s length transaction in the open market, with no discount or premium for the size of the participating interest being acquired.