Hancock Prospecting, News, Takeover bids

Battle for Warrego comes to an end

Hancock Energy now owns 95.63 per cent interest in Warrego Energy, effectively ending the months-long takeover battle.

Earlier in February, Strike Energy, the only remaining suitor for Warrego after MinRes and Beach Energy stepped aside, walked away from the race with $136 million.

This paved the way for Hancock to assume control.

Hancock announced on Monday February 27 that its offer for Warrego shares had closed at 7.00pm on Friday February 24, by which time it had acquired 95.63 per cent of shares.

The company confirmed it will now commence the compulsory acquisition process for the remaining shares.

The process is likely to take four to six weeks, but may take longer in some circumstances.

Warrego shareholders have been offered $0.36 a share.

Commenting on the takeover battle, Strike managing director and chief executive officer Stuart Nicholls expressed his enthusiasm for the future of the company.

“Strike has never been in a better position than it is today, with imminent gas production and cash flow generation at the Walyering gas field, having a robust balance sheet and operating the largest reserve and resource position in the Perth Basin, all whilst local and global gas markets continue to tighten, and pricing dynamics increase in attractiveness,” he said.

“With two planned and funded drilling campaigns in the next 12 months, a proposed investment decision at the Erregulla domestic gas project and the opportunity to accelerate assets where known and unrecognised dormant value exists, there is a lot to look forward to for our current and newly welcomed Strike shareholders.”

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