Strike gains support from within Warrego - Energy Today...

Strike gains support from within Warrego - Energy Today (energytodaymag.com.au)


Strike Energy has received considerable support from shareholders for its latest offer in the battle for Warrego Energy.A number of Warrego shareholders, collectively owning 20.5 per cent of its shares, have publicly indicated their support for Strike Energy’s bid in the absence of a superior offer.Independent Chairman for Warrego, Greg Columbus, has urged remaining shareholders to reject Hancock’s offer for a number of compelling reasons.Columbus stated that the implied value of Strike’s shares in the final days of 2022 was 32 cents per Warrego share, representing a 14.3 per cent premium to Hancock’s previous revised offer of 28 cents.He also stated that Hancock’s offer represents a ‘terminal value’, depriving shareholders of the potential increase in value as Strike continues to develop its assets elsewhere.Warrego is yet to respond to Hancock’s most recent bid, which increased its offering to 36 cents per Warrego share, if Hancock receives at least 40 per cent acceptances.The value assessment comes on the heels of Strike announcing its Erregulla domestic gas strategy update, released on 23 December 2022.The update included the announcement of the company’s decision to locate a domestic gas plant in its 100 per cent owned mid west low carbon manufacturing precinct, offering a series of benefits including:Faster and simpler environmental approvalsA centralised facility with appropriate capacity for the greater regionRemoving the need to duplicate infrastructureScalabilityEmissions reduction through the integration of the proposed Precinct renewables capacity.The company announced that it will look to engage with joint venture partners in the development of its Erregulla (EP469) strategy if it is required as a result of its most recent bid on Warrego.Strike has received confirmation that Columbus also intends to accept its offer subject to no superior proposal emerging.