RBC Fundamental ViewWarrego provides a leveraged, “ early-stage...

RBC Fundamental View

Warrego provides a leveraged, “ early-stage investment opportunity“ into the emerging onshore Perth Basin deep gas play. We see strong resource upside at West Erregulla with the Alcoa gas sales contract to underwrite future field development. Gas-processing agreement with AGIG facilitates mid-stream development. We believe Warrego is undervalued on a DCF basis, resource potential, and relative to its joint venture partner. We rate Warrego Outperform, Speculative Risk.