Warrego commits to Long Lead Items for West Erregulla...

Warrego commits to Long Lead Items for West Erregulla gasprocessing plant

• Warrego Energy has commenced payments to AGIG to commit Long Lead Items for theconstruction of the 87 TJ/d gas processing facility for the West Erregulla Gas Project

• Commencing procurement of Long Lead Items now will enable Phase 1 of the WestErregulla Gas Project to maintain its targeted first gas date in mid-2023

  Warrego Energy Limited (“Warrego” or the “Company”) (ASX: WGO) has commenced payments toAustralian Gas Infrastructure Group (“AGIG”) to enable it to commit Long Lead Items (“LLIs”) for theconstruction of the mid-stream 87 TJ/d gas processing facility for Phase 1 of the West Erregulla GasProject.

  Under the LLIs arrangements, Warrego will make further payments to AGIG so that it can commit to allnecessary LLIs prior to project finance becoming available. Warrego secured funding for its 50% share ofup to $31.5 million of LLIs via a successful $50 million Placement undertaken in June 2021. In line withthe proposed project financing arrangements, payments for LLIs will be on a several basis. Paymentsassociated with the LLIs will form part of the overall gas processing plant development and will be refundedback to Warrego once the full project development agreement with AGIG is in place and project finance isavailable.

  Warrego’s CEO Australia, David Biggs, said:

  “Committing to LLIs now will enable Phase 1 of the Project to maintain its targeted first gas date in mid-2023.

  “We are entering a period of high activity at West Erregulla with flow testing of WE-4 underway, followedby the testing of WE-5, reserves certification, a gas processing agreement, permitting and project finance.By committing to the LLIs we will further de-risk the project and facilitate a smooth start to constructionpost necessary project approvals.”

  The West Erregulla Gas Project is located in the onshore Perth Basin, approximately 230 km northeast ofPerth, Western Australia, in EP469.