# WGO - Warrego Energy



## System (7 February 2012)

Petrel Energy Limited (PRL) was formerly known as Orion Petroleum Limited (OIP).

Previous discussion of this company can be found in the OIP thread: https://www.aussiestockforums.com/forums/showthread.php?t=8859


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## piggybank (21 December 2013)

Double Top or will it carry on going up?


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## Valued (21 December 2013)

Hard to tell. I looked at it on the candlestick chart and sellers were able to push the buyers back. It looks like those some traders decided to take their profits. I would not put any money into this yet since I think it's a pure gamble. That being said, if I was made to take a choice at gun point, I would short the stock. The latest capital raising sold the shares at 0.135. That announcement came out on the 17th. The company outlook at a brief glance looks poor (as are all companies that don't do anything but lose money and raise capital). I would expect it more likely that the price will fall at least to the value of the shares sold on the capital raising. It makes no sense for a share price to rise after equity has been diluted.

It may be that some traders bought in since of the upwards momentum then the ones who opened the action decide to sell to the ones who do not want to miss out. The price then falls as those traders who purchased at resistance lose money. Next they will get scared and sell driving the price down further.


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## piggybank (24 December 2013)




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## piggybank (3 February 2014)

Quarterly Activities and Cashflow Report released on the 31st January 2014 - http://stocknessmonster.com/news-item?S=PRL&E=ASX&N=780074


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## rnr (10 April 2017)

Perhaps another indication of life in PRL?


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## 4kids (16 August 2017)

Anyone still around and following PRL at the moment? Drilling in Uruguay...first drill @Cerro Padilla 815m very, very close to announcing td...massive potential! Management ex ESG guys


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## greggles (23 October 2017)

4kids said:


> Anyone still around and following PRL at the moment? Drilling in Uruguay...first drill @Cerro Padilla 815m very, very close to announcing td...massive potential! Management ex ESG guys




Petrel Energy up 116% so far today after announcing first hydrocarbons discovered at the Cerro Padilla-1 well in Uruguay. A good day for those holding.


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## System (28 March 2019)

On March 28th, 2019, Petrel Energy Limited (PRL) changed its name and ASX code to Warrego Energy Limited (WGO).


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## Padowan (2 September 2019)

I have picked WGO for the ASF September 2019 stock picking competition. Following announcement of a major gas discovery on 27 August, the stock has traded up strongly and was 
up a further 9% today


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## Padowan (24 September 2019)

Padowan said:


> I have picked WGO for the ASF September 2019 stock picking competition. Following announcement of a major gas discovery on 27 August, the stock has traded up strongly and was
> up a further 9% today
> 
> 
> ...



Well, we live and learn (hopefully) post discovery sell down and a capital raising in September has seen price pullback considerably and evaporated any chance for the September 2019 competition . I am learning about charts through reading the interpretation by members reviewing other  charts in the ASX stock chat. Would I be wrong if I say based on the daily price chart below there is support at 0.30 and resistance at 0.34 ish, this is a potential consolidation zone and a price rise through 0.34 should be viewed as a bullish move if accompanied by rising volume and any move above the recent high of 0.40ish would be a breakout and potential buy?

Any constructive advice appreciated.


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## greggles (25 March 2020)

It's been a bad six months for Warrego Energy. The share price has declined from around 37c in October last year, to a low of 8.6c yesterday. It has climbed back to 9.5c today after the company announced a cost cutting corporate reorganistion, which included the resignation of Executive Director Duncan MacNiven.

The Board of WGO has decided that the company will reduce salaries paid to Executive Directors and Senior Executives and the fees paid to Non-Executive Directors by 50% from 1 April, with a review of the position to be held post end June. The impact of COVID-19 was specifically cited as a reason for the cost cutting.

Last quarter the company reported a $4.262 million operating loss and had cash of $9.111 million at the end of the quarter. That may sound like a fair bit, but the reality is that it's only another two quarters worth of cash burn at the same rate.

It is going to get harder and harder for small cap miners to raise cash in the current economic environment. When the market starts to recover, I think people are going to pile into the safest blue caps and companies like WGO will get left to one side.

Wouldn't go near this one at the moment. Too many risks and too much uncertainty. I think I'll revisit it in about six months and see how they are doing then.


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## Dona Ferentes (25 March 2020)

in the second half of 2019, the 'exciting' play was drilled. The market was kept informed (probably too much)  as 







> West Erregulla-2 [was] being drilled in EP 469 which is adjacent to and targeting analogous Permian gas sands of a similar size and nature as the Waitsia gas discovery



First up , by mid August







> • Significant conventional gas discovery in the Wagina Sandstone
> • Wagina reservoir characteristics appear good quality with a gross section of 74m
> • WE-2 still to drill through to Basal Wagina and yet to encounter wet gas sands
> • Wagina porosity development is additional evidence of Strike subsurface model accurately predicting hydrocarbons and porosity



 and come the start of Sept







> • Excellent quality conventional gas discovery in the High Cliff sandstone
> • High Cliff log data compares favourably to the Waitsia gas field log data
> • Gas saturated High Cliff sandstone with 10m of net pay and porosities up to 16%
> • Gross High Cliff gas column of at least 22m
> • WE2 well drilling now complete at 5,100m



Then came the capital raise at 29c mid Sept, and by Oct, three payzones 







> The testing program is designed to determine well deliverability from the Kingia Sandstone reservoir at the West Erregulla field, and to collect additional well data and gas samples for compositional analysis to feed into reserve certification calculations and gas marketing conversations.
> 
> Three intervals totaling 48 metres, from 4,799 metres to 4,851 metres Measured Depth Below Rotary Table, were perforated and flowed. Well clean-up operations commenced on 21 October 2019. On 24 October, following completion of the clean-up flow, the well flowed at a maximum rate of 69 million standard cubic feet of gas per day (MMscf/d) on a 2-inch choke at ~ 700 psig well head pressure over a 1-hour period.



So there we have it, three zones, the Wagina sort of fell away (*resource *270 BCF), the Kingia flowed (thought to be up to 1.2TCF *contingent resource*), but it was deep deep and the sands were ho-hum and not that special.

And since then, a T/O from Strike has been turned down, and recently a slump in hydrocarbon pricing - oil and then gas - and now a virus. The company has opened a Perth office, is trying to shop the resource, or at least get funding to turn a resource into reserves. Will that happen? not for a while, and lots of stale holders probably wanting to get out. Hard to raise capital without diluting. Meantime, cash running low as greggles points out.

And they're up against Waitsia for domestic gas, that may flow to WA market, but maybe not for 3-4 years when supply gap opens up.


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## greggles (25 March 2020)

Nice summary. Thanks for filling in the blanks.


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## barney (26 March 2020)

greggles said:


> Nice summary. Thanks for filling in the blanks.




Yeah agree … good summation @Dona Ferentes 

Tough times for small Oilers ….. The fact that Strike made a low ball offer means that WGO are obviously good value … but will also become more vulnerable as cash dries up.

Bounced off that old low around 8 cents but doubtful that will hold over the next few months.  Worth keeping on the watchlist though.


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## Dona Ferentes (21 May 2020)

Trading Halt.... roll drum ..... Capital Raising on its way

Two days prior, WGO came out with a 2C for West Erregulla of _*513 Bscf gross*_.

Strike begs to differ:


> announcement made by Warrego Energy Limited regarding the contingent resource estimate certified by RISC on the 18th of May 2020.... Strike acknowledges there are differences in volumetric estimates between the resource statement released by Strike on the 11th of November 2019 and this recent estimate by Warrego, based on the information disclosed in their announcement.



and


> Strike is the operator of EP469 and is the leading explorer of the Permian Gas Fairway of the North Perth Basin. Strike’s rigorous geological and geophysical work in the Basin broke open this deep gas play, proving the existence of major conventional gas fields deeper and further eastward than any previous subsurface interpretation has led to. This was a result of seismic analysis which fed into Strike’s modelling.  Strike’s resource estimate in November 2019 was compiled and certified by Igesi Consulting Pty Ltd in accordance with the SPE-PRMS-2018.



furthermore







> Strike is confident of its modelling, which has proven accurate to date, and has been used to inform the initial target identification and drilling program, which in the case of West Erregulla 2 led to the discovery of the West Erregulla gas field.


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## Dona Ferentes (28 September 2020)

moved away from this during Covid,...... back with some good news


> WA's biggest gas buyer, Alcoa of Australia, has signed a huge gas purchase deal that looks set to kickstart a fresh phase of development of onshore gas in the state.
> The binding deal with junior Warrego Energy for 155 petajoules of gas is enough to commit to develop the West Erregulla field in the Perth Basin, a decision targeted for the June half of 2021, Warrego said  today.




Warrego managing director Dennis Donald said the deal with WA's largest gas buyer "is testament to the quality of the West Erregulla gas field and the commercialisation strategy adopted by Warrego, and will send a positive signal to other potential gas buyers".
He said Warrego is well advanced in progressing options for gas processing, including sharing infrastructure and third-party processing, with a view to selecting the preferred option later this year.
"No further GSAs [gas sales agreements] are required in order for Warrego to commit to bringing the field into production," Mr Donald said.


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## Sean K (4 November 2021)

WGO been beaten down recently. I wonder if jumping on this H bandwagon will fix that?


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## divs4ever (11 November 2022)

Receipt of Non-Binding and Indicative Proposal
Warrego Energy Limited (“Warrego”, ASX:WGO) wishes to advise that it has received a non-binding
indicative offer from Beach Energy Limited (“Beach”, ASX:BPT) under which Beach would acquire all of
the shares in Warrego via a scheme of arrangement (the “Proposal”).
Under the Proposal, Warrego shareholders would receive:
• Cash consideration of $0.20 per share; and
• If Warrego's Spanish assets are sold, and such sale completes, within 12 months of
implementation of the scheme, additional scheme consideration described below.
The Proposal is subject to several conditions including:
• Confirmatory due diligence;
• Agreement of, and entry into, a binding scheme implementation deed; and
• Recommendation of the Board of Directors of Warrego.
Contingent scheme consideration if a sale of the Spanish Assets is completed within 12 months
As part of the Proposal, Beach would be required to use reasonable endeavours to market and sell the
Spanish assets. If those assets are sold, and such sale is completed, within 12 months following
implementation of the scheme, Beach will be required to pay, as additional consideration for the
Warrego shares transferred under the scheme, the net proceeds of sale of the Spanish assets (net of all
taxes and costs). Any such consideration would be in addition to the cash consideration to be provided
by Beach for Warrego shares under the scheme.
Due Diligence
The Warrego Board considers the Proposal is at a sufficient level to merit further review and has
determined to grant due diligence access to Beach.
Any scheme implementation agreement entered into between the parties would itself be subject to a
number of conditions including Warrego shareholder approval.
Next Steps
The Warrego Board will update shareholders and the market in due course. Shareholders do not need to
take any action in relation to the Proposal at this stage. There is no certainty that the Proposal will result
in a transaction.
Warrego is being advised by RBC Capital Markets and Allens.
Authorised by the Board of Warrego Energy Limited

DYOR

i hold BPT ( 'free-carried' ) my average buying price is 52.5 cents


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## Dona Ferentes (11 November 2022)

divs4ever said:


> i hold BPT ( 'free-carried' ) my average buying price is 52.5 cents



_Fascinating_

But what does Warrego hold?


> In WA's prolific Perth Basin, the Company holds a 50% interest in EP469, including the West Erregulla gas project, and 100% of EPA-0127.



which Beach would covet


> In Spain, the Company holds an 85% working interest in the Tesorillo gas project in the Cadiz region and a 50.1% working interest in the El Romeral gas to power facility in the Seville region.



which could be anything.

And, because a day before,


> Strike Energy Limited (ASX: STX) refers to Warrego Energy Limited’s (ASX: WGO) ASX release this morning dated 10 November 2022. In order to keep the market fully informed, Strike confirms that on 16 September 2022 it submitted a *confidential, non-binding indicative all-scrip merger* proposal to the Warrego Board ...


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## divs4ever (12 November 2022)

now i don't follow either Strike Energy or Warrego  Energy  , and my skill in the oil/gas sector  has been luck   especially in BPT , Linc Energy  and Otis Energy ( which later morphed into ISX )

 now i was rather surprised that BPT made an offer here  , BPT has capped wells in Australia waiting to be turned into producers  , so does BPT really need projects in Europe ( given current EU agendas ) ??

 or is this a spoiler  to slow down/stop the STX merger 

 or maybe BPT  is playing the carbon offset game   with some cash income to help  with the bills 

El Romeral Gas to Power facility, Spain
• Cash proceeds received during the quarter from El Romeral electricity was $1,265,000 (gross).
• Warrego has applied to drill three additional infill wells to provide gas feedstock. Warrego is targeting drilling of the additional El Romeral wells in Q2 2023, subject to award of permits.
• Project Apollo, the installation of solar panels to power ancillary services, was successfully completed during the period and has been generating electricity in line with expectations.
• Project Helios, a proposed renewable co-generation facility via a 5 MW solar farm adjacent to El Romeral, is advancing through the FEED stage with land negotiations and an environmental impact assessment underway.

 OR maybe BPT is hoping for a cheap side-door entry into a part holding of STX   , remembering the Stokes family ( a major shareholder in BPT ) are quite happy to have substantial holdings in various companies  and a seat on the board 

 this might be good for novices to watch and learn from  , as similar plays are liable to involve their portfolios in years to come


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## Dona Ferentes (12 November 2022)

BPT offer for WGO is at 20c a share (indicative and non-binding, no bankers lined up)

Strike’s scrip-based bid valued Warrego at 18.6¢ a share when it was lodged in late October.
Strike is Warrego's 50 per cent partner in the West Erregulla project and holds an 8.2 per cent pre-bid stake.

Neither company is interested in Warrego's Spanish assets and would like them sold within 12 months. Both bidders would like a board recommended deal and a scheme of arrangement.

The bidding has a potential to go higher;


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## Dona Ferentes (14 November 2022)

and that happened quickly 

Announced this morning:  Beach has entered into a Scheme Implementation Deed with Warrego Energy Limited (ASX: WGO) under which Beach will acquire all the issued shares in Warrego for* $0.20 cash* per share, plus any net proceeds received from the sale of Warrego’s Spanish assets, by way of a members’ scheme of arrangement. 

so, that puts the Spanish assets at, say, 2c?


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## rcw1 (30 November 2022)

Dona Ferentes said:


> and that happened quickly
> 
> Announced this morning:  Beach has entered into a Scheme Implementation Deed with Warrego Energy Limited (ASX: WGO) under which Beach will acquire all the issued shares in Warrego for* $0.20 cash* per share, plus any net proceeds received from the sale of Warrego’s Spanish assets, by way of a members’ scheme of arrangement.
> 
> ...



Good afternoon
Game on.  
Gina Rinehart’s Hancock Energy has launched a competing takeover bid for Warrego Energy, trumping Beach’s offer and sending the target’s shares higher.  Hancock is urging Warrego shareholders to accept its 23c per share offer immediately, and says it beats Beach Energy’s 20c per share bid on a number of fronts.  The new bid, it says, includes consideration for the company’s Spanish assets, which 

Beach intends to sell post-acquisition, with that money then flowing back to shareholders.

Beach’s bid had in turn trumped an earlier scrip bid from Warrego’s joint venture partner Strike Energy.  

Hancock says its offer will not be subject to a Warrego shareholder vote, has no minimum acceptance level, and shareholders who accept the off-market bid will receive their money within 10 days.  The company said it had been engaging with the Warrego board on a confidential basis, but those talks had now ceased.  Warrego is currently endorsing the Beach bid, which Hancock said came with the risk that the Spanish assets might never deliver any value.

The Hancock offer is scheduled to close on January 31 next year.The new offer waives a number of conditions commonly associated with takeover bids, such as the “the material adverse change condition’’.
“The low level of conditionality of hancock’s offer should provide Warrego shareholders with a higher level of certainty that they will be paid the offer price for their Warrego shares following their acceptance of the offer,’’ the bidder’s statement lodged with the ASX says.

Warrego is yet to respond to the new takeover offer.

Warrego earlier this week issued a statement to the ASX denying it had rushing into a deal with Beach, revealing it had opened its books to a number of parties in the lead-up to the current tussle for control of the company.

Strike Energy, which is a joint venture partner with Warrego in the West Erregulla project in Western Australia, revealed a scrip bid for the company on November 10, which it believed the Warrego board would back.

Late the next day Beach announced a 20c-per-share cash bid, which was considered by the Warrego board over the weekend and unanimously endorsed on Monday morning.


Ominous signs for Aussie gas.  No doubt about it.

Kind regards
rcw1


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## noirua (1 December 2022)

Warrego Energy (ASX:WGO) weighs Hancock Energy offer amid takeover scuffle
					

Warrego Energy (ASX:WGO) on Thursday morning said it was considering a fresh takeover offer from Hancock Energy after the Gina Rinehart business announced its bid earlier this week.




					themarketherald.com.au
				



Warrego Energy (WGO) on Thursday morning said it was considering a fresh takeover offer from Hancock Energy after the Gina Rinehart business announced its bid earlier this week.

The energy arm of Ms Rinehart’s Hancock Prospecting this week made a surprise appearance in the battle for control of Warrego after the gas junior fielded competing bids from Beach Energy (BPT) and Strike Energy (STX) over November.

Hancock Energy has offered to pay 23 cents per share for full control of Warrego, trumping Beach and Strike’s respective offers of 20 cents and 18.6 cents per WGO share.

Live price chart: https://uk.advfn.com/p.php?pid=staticchart&s=ASX^WGO&p=5&t=1


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## Sean K (2 December 2022)

This livens things up a bit more. Nice for WGO holders.


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## rcw1 (2 December 2022)

rcw1 said:


> Good afternoon
> Game on.
> Gina Rinehart’s Hancock Energy has launched a competing takeover bid for Warrego Energy, trumping Beach’s offer and sending the target’s shares higher.  Hancock is urging Warrego shareholders to accept its 23c per share offer immediately, and says it beats Beach Energy’s 20c per share bid on a number of fronts.  The new bid, it says, includes consideration for the company’s Spanish assets, which
> 
> ...



*Update:*
BPT first offer was 20c then upped to 25c.
Hancock first offer was 22c upped now to 28c

Where will it end ?
Bloody exciting


Rinehart v Stokes: Bids flow thick and fast for Warrego gas.  Angela Macdonald-Smith and Brad Thompson: AFR

A bid by Kerry Stokes-backed Beach Energy to get the upper hand in the takeover battle for West Australian gas developer Warrego Energy triggered a swift riposte from Gina Rinehart’s Hancock Prospecting, which quickly raised its own offer almost 22 per cent to emerge on top.

*The increase in Hancock’s offer to 28¢ a share,* or $342.5 million, came just hours after Beach raised its bid to 25¢, some 25 per cent above the initial proposal that had already secured the recommendation of Warrego’s board.Shares in Warrego surged 9.6 per cent to a three-year high of 28.5¢, suggesting the market expects further takeover action to emerge around the little-known gas player. Two billionaires Gina Rinehart and Kerry Stokes are among those battling for control of Warrego Energy.  Fielding the blizzard of offers, Warrego advised shareholders to take no action as it considered the developments.  The tussle for control of Warrego, which owns half the promising West Erregulla gas resource in the onshore Perth Basin, was kicked off last month by Warrego’s partner in the field, Strike Energy, with a scrip offer that put it in play.  An increase in the Strike share price, as speculation mounts it could also become a takeover target for a buyer wanting total control of West Erregulla, has led to its scrip offer rising in value.  Little-known Warrego has become hot property as players seek to snare a dominant position in gas resources in the Perth Basin, some 200 kilometres north of Perth, which has long been seen as a candidate for consolidation among multiple holders of acreage.  The Warrego takeover action is reminiscent of the takeover battle for AWE that emerged in late 2017, with that larger Perth Basin player being snared by trading giant Mitsui. That gave the Japanese heavyweight, which beat bids from China Energy Reserve and Chemical Group and Chris Ellison’s Mineral Resources, 50 per cent of the Waitsia gas field in the region, in partnership with Beach.  The basin hosts producing fields such as Waitsia as well as several undeveloped fields, processing and pipeline infrastructure, all much closer to the main demand centres in WA than larger offshore fields further north.Analysts have suggested that more interested players may yet reveal their hands, with Santos, Mitsui and Mineral Resources all expected to be keeping a close eye on developments.  “The battle of the Western Australian billionaires for gas is on, as the Stokes, Rinehart and possibly Ellison all eye Perth Basin M&A,” said Credit Suisse energy analyst Saul Kavonic.“Low-cost, proven gas near infrastructure was always going to be attractive to strategic buyers looking to support their downstream ambitions or existing Perth Basin footprint.  ”Shares in diversified mining services and resources player MinRes closed 0.7 per cent firmer at a record high of $89.83.  Under the terms of its takeover scheme with Warrego, Beach has the right to match any higher offer and will have another chance to rival Hancock’s latest bid.  

Strike CEO Stuart Nicholls said some under bidders in the battle for AWE had never been disclosed.  Mr Nicholls, who is keen to talk up the value of Perth Basin assets in the interests of Strike, maintains two big players could be yet to show their hand in the bidding war for Warrego and made a case for Woodside and Santos to join the fray.  “There are people who participated in the AWE sales process back in 2018 that were under bidders that have shown that they are looking for large quantities of energy going forward,” he said.“And then there are also the Australian majors. They’ve got enormous balance sheets at the moment and their growth projects are limited and more difficult. Therefore, the Perth Basin can represent a very low capital cost and material growth asset.”“Woodside put out their strategy documents on Thursday and all of their growth assets look challenging. The Browse and Sunrise gas fields were discovered in the 1970s and remain in the ground and then some of their other international stuff that they picked up from BHP is offshore, deep water and high cost.“Santos is Australia’s premier onshore operator, the Perth Basin is Australia’s premier onshore basin, and so Santos not having a position does raise a few question marks.”Mr Nicholls said the interest from big miners such as Mrs Rinehart’s and Mr Ellison’s Minerals Resources was understandable given rising energy costs and the important role gas had to play in reducing mining’s carbon intensity.“People are looking at putting their foot on these assets because once these assets change hands to a Mitsui or a Beach or Santos etc that’s where they live the rest of their time,” he said.The WA government policy limits onshore gas producers to the state’s domestic market apart from a one-of-kind export exemption granted to Waitsia gas field partners Beach and Mitsui.Mr Nicholls, who has criticised the uneven playing field created by that special arrangement, said it appeared Beach and Mitsui might have more chance of gaining further export concessions from the WA government than others trying to consolidate Perth Basin assets.Santos, with about a 40 per cent share, followed by Woodside and Chevron, dominate domestic gas supply in WA under the section of the reservation policy that covers offshore production.There are currently fears about power supply in the state with the Santos’ Varanus Island gas hub out of action for as long as six weeks while the company tries to fix a pipeline gas leak.The Strike share price jumped almost 6 per cent to 31.7¢ in early trading as the battle of the Perth Basin intensified before closing at 31.25¢.Mr Nicholls refused to comment when asked if Strike could make a counterbid for Warrego, but said Strike saw “incredible value creation for both sets of shareholders in the consolidation of the asset under one owner”.


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## Sean K (5 December 2022)

Wonder how long this keeps going....well done if you were in this in Oct!


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## rcw1 (12 December 2022)

Good afternoon
Reported today (12/12/22) in the AFR:

Battle for Warrego Energy may just be opening salvo​*Colin Packham*Energy and resources reporter
Dec 12, 2022 – 5.00am

When Beach Energy called it quits in the battle for Warrego Energy, some may have expected the competition between Australia’s richest person, Gina Rinehart, and Kerry Stokes to be the highlight.  Instead, the contest for the gas minnow may have a few more twists and turns, and it may just be an appetiser for a wave of consolidations in onshore West Australian gas.




Gina Rinehart’s Hancock Prospecting sweetened its offer for Warrego Energy. Matt King
Rinehart’s Hancock leads the contest for Warrego with an all-cash bid pitched at 28¢ a share, in a deal that values Warrego at $342 million.

The latest Hancock bid, during what turned into a rapidly escalating takeover battle last week, trumped an offer of 25¢ a share from Beach Energy.  Warrego would augment Hancock’s growing portfolio of gas assets, which includes a minority stake in Queensland-based domestic gas producer Senex Energy, alongside majority owner and steel maker Posco of South Korea, and a stake of about 3 per cent in Norwest Energy, another Perth Basin explorer.

The deal, though, may not be the end of Rinehart’s ambitions. But Strike Energy – another Warrego suitor and a partner on the West Erregulla gas field – could complicate Hancock’s ambitions.  “We expect further mergers and acquisitions next year, including the possibility of Strike becoming a target itself,” Credit Suisse analyst Saul Kavonic said.

Strike Energy has increased its stake in Warrego to 19.9 per cent and shapes as a potential kingmaker in the fight. Strike boosted its stake through a one-for-one exchange of shares with various Warrego shareholders that strengthens its hand in the takeover tussle and increases its say in the future of West Erregulla.





“[Strike’s] 19.9 per cent interest in Warrego puts Strike in a strong position with respect to a transaction becoming effective, it can block compulsory acquisition of Warrego and can prevent its de-listing,” said Stuart Howe, senior analyst at Bell Potter.  “We continue to believe that the interest in Warrego and its non-operating interest in West Erregulla provides strong validation of the exploration potential and technical/economic feasibility of Strike’s Perth Basin assets from two high-profile energy sector participants, and that the corporate interest in Warrego may be a precursor to broader Perth Basin energy consolidation.”


Strike left the door open to discuss various deals with players interested in consolidating assets in the Perth Basin, saying its board “had not formed any intention with regards to any future transaction that may involve Warrego, and Strike is currently considering all available strategic options”.

Strike chief executive Stuart Nicholls is considered to have a strong track record of identifying and securing valuable and strategic energy assets at various stages of maturity.  “The expansion of our ownership of Warrego shares and the resulting look through to an increased economic interest in the West Erregulla gas field is a further demonstration of this,” he said.

_The_ _Australian Financial Review_ understands there is no love lost between the boards of Strike and Warrego despite their partnership in West Erregulla, about 230 kilometres north-east of Perth.

Value in the west​There is also some hostility between Strike and Beach. In November, Nicholls hit out at the one-of-a-kind exemption granted to the Waitsia gas reserves controlled by joint venture partners Beach and Mitsui, saying it left other players at a disadvantage with more twists on the way in the takeover battle for Warrego Energy.


Under concessions granted by the West Australian government in 2020, a chunk of gas from Waitsia can be exported as LNG while all other onshore production is restricted to the state’s domestic market.

*The four main players in the Perth Basin are Beach, Japanese conglomerate Mitsui, Chris Ellison’s Mineral Resources and Strike.*

Nicholls said the Perth Basin had the potential to supply Australia’s east coast but not without an easing of Western Australia’s domestic reservation policy.  Analysts said the additional gas supplies through a deal with Warrego would have been a boost for Beach.

“Gas from these assets could be commercialised to support Western Australia’s domestic gas market and/or export gas markets if the Western Australian government eases gas export controls,” said UBS energy analyst Tom Allen.  Unperturbed at losing out, Beach said it too shared confidence in Western Australia’s gas sector.


“The multiple party bidding process for Warrego has reinforced our view of the value of our dominant acreage position in the Perth Basin and encourages us to expand our current active exploration drilling program in one of the most exciting gas plays in Australia,” said Beach Energy’s chief executive Morne Engelbrecht.

“We propose to invest further exploration capital into our existing prospects and drilling inventory in the Perth Basin. Beach will look to accelerate exploration, development and commercialisation of our acreage to deliver more gas for Western Australia,” Engelbrecht said.

The Beach decision not to continue the bidding war comes as it is embroiled in the fallout from the collapse of Perth-based engineering group Clough.  Clough was a key contractor for Beach and its partner Mitsui in the $768 million Waitsia gas project in the Perth Basin. Beach shares have taken a hammering this week given the cloud hanging over completion of the engineering work

Future role of gas​The scramble for control of Warrego comes as Australia’s energy and industry sectors face a material shortfall in domestic gas supplies next year.  Gas in Australia is typically used as a peaking fuel, with plants fired up when demand is strong in the evening and on cold mornings. But in recent months, gas plants have been required to run almost around the clock to compensate for the loss of coal generation.

Despite this, however, the outlook for gas is rocky. Although gas demand shows no sign of abating, state and federal governments have moved to exclude it from a capacity mechanism that is designed to prop up Australia’s National Electricity Market, and a recent landmark ruling from the Federal Court appears set to further complicate the pathway for future developments.

At an energy ministers’ meeting in Brisbane last week, Federal Energy Minister Chris Bowen hailed the agreement as a breakthrough after the ministers controversially took the delivery of the capacity mechanism off the Energy Security Board in August.

The Energy Security Board’s original proposal for a capacity mechanism, to help ensure there was enough supply in the grid, included coal and gas.

Mr Bowen said the Commonwealth would run auctions for dispatchable generation from next year to ensure there was enough renewable energy in each state or territory.  The proposed capacity mechanism will pay providers to have their capacity available during certain periods to ensure there are no power shortfalls in the grid.  But energy experts have warned about the risks of relying on solar, wind and storage to provide dispatchable generation to replace synchronous generation from coal and gas.

Have a safe and happy Christmas and prosperous new year.
rcw1 holding STX.

Kind regards
rcw1


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## rcw1 (21 December 2022)

Good afternoon
and further on the developments:
Been reported today (21/12/22)

Gina Rinehart's Hancock Energy may raise the stakes in its race to buy Perth gas business Warrego Energy after 15.8 per cent of the target's investors, including co-founder Duncan MacNiven, agreed to accept the 28c cash offer if the suitor makes its bid unconditional by Friday.

Mr MacNiven's 11.27 per cent stake comprising 137.8 million shares – held by his UK-based Mira LasNubes LLP business – is on the list of supportive investors, which also includes Serena Arif, a 1.05 per cent stakeholder in Warrego with 12.8 million shares, who is connected to Mr MacNiven via his oil and gas entity Delphian Ballistics.

Former Warrego chief financial officer Owain Franks, who holds a 1.06 per cent stake (13 million shares), is also leaning towards the Hancock deal.

"The supportive shareholders, for their own reasons, are seeking to realise cash value for their Warrego shares as soon as possible," Hancock Energy says in its fourth supplementary bidder's statement on Wednesday – a day after warning Warrego investors that rival Strike Energy's one-for-one scrip bid comes with the risks of it having "no track record" on energy or manufacturing projects and possible exposure to funding challenges.

Hancock is now considering its position in the light of the shareholder statements and intends to update the market by Fr

Have a safe and happy Christmas and prosperous new year.

Kind regards
rcw1


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## rcw1 (23 December 2022)

rcw1 said:


> Good afternoon
> and further on the developments:
> Been reported today (21/12/22)
> 
> ...



Good morning 
Reported today (23/12/22) Hancock waives the conditions in its takeover bid for Warrego Energy after 15.8 per cent of shareholders informed the companies they would accept a 28c per share offer if it was made unconditional.

Hancock on Friday said all Warrego shareholders who had already accepted its offer would be paid 28c per Warrego share within 10 business days.

"Hancock urges all Warrego shareholders to accept Hancock’s offer without delay, and receive cash value for their Warrego shares," the statement said.

The transition begins … 
Another development (s) on the horizon for sure.

Have a safe and happy Xmas 🎄 and prosperous new year.

Kind regards 
rcw1


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## rcw1 (3 January 2023)

Good morning
Gina's equity in WGO up to 25.91% from 14.54% as at time of announcement 8.25am today, 03/01/23.
She gunna need more than that.  Perhaps actions not executed yet...  interesting.

Kind regards
rcw1


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## Roller_1 (4 January 2023)

rcw1 said:


> Good morning
> Gina's equity in WGO up to 25.91% from 14.54% as at time of announcement 8.25am today, 03/01/23.
> She gunna need more than that.  Perhaps actions not executed yet...  interesting.
> 
> ...




I picked this up in my trend system the other week. Is it worth holding for another offer? Or sell up? A question for you fundamental folk


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## InsvestoBoy (4 January 2023)

Roller_1 said:


> I picked this up in my trend system the other week. Is it worth holding for another offer? Or sell up? A question for you fundamental folk




Does your trend system have a backtest for "exit via illegal financial advice from ASF randos" or not?


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## Roller_1 (4 January 2023)

InsvestoBoy said:


> Does your trend system have a backtest for "exit via illegal financial advice from ASF randos" or not?



Not financial adv at all, asking for opinions.


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## rcw1 (4 January 2023)

Roller_1 said:


> I picked this up in my trend system the other week. Is it worth holding for another offer? Or sell up? A question for you fundamental folk



Hey Roller_1
was this you today (04/01/23)  !!!  ha ha ha ha ha


3:20:31 PM0.350186,042,64365,114,925.050CXASP XT

Seriously, not sure what you paid and how many shares, but irrespective, make sure that you have read both these attachments.  The other considerations for mine, $0.35 is good coin for a WGO Share. 52 week ++++ high today of $0.345; and trend is bull, if timeframes good, could consider waiting a tad longer and see what happens as absolute madness with volume and depth, crazy



At the end of the day and when the dust settles, great position to be in Roller_1 100% on the money (pardon the pun)
Kindly conduct your own due diligence.  Whatever you choose all the very best with it.

EDIT cosmetic stuff..
Kind Regards
rcw1


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## Roller_1 (4 January 2023)

rcw1 said:


> Hey Roller_1
> was this you today (04/01/23)  !!!  ha ha ha ha ha
> 
> 
> ...





Maybe.. maybe not. 

No longer a holder.... lol joking

I'll just hold it for a while until like you said it comes down. Someone else might step up to the plate...

My normal plan of attack is to just wait for a while and then sell before you get caught up. But I have sold too early a few times and then it gets under another bid and you miss out on 10 or 15% sometimes


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## rcw1 (5 January 2023)

Good evening,
WGO announcements X 3 today.  

Takeover bid by Hancock Energy (PB) Pty Ltd – sixth supplementary bidder’s statement:  The executive summary in bold and in capitals.  Must be important  :

$0.36 cash per share should Gina acquire 40% of the company;
Majority WGO Board (3 out of 4) has recommended shareholders accept, of which Director Dennis Donald sold up to Gina for $0.28 with the other $0.08 per share + pending.... and
CGT rollover relief may not be available to WGO shareholders that sell to STX 
Not holding.
Have a very nice day today.

Kind regards
rcw1


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## rcw1 (5 January 2023)

Good evening
published via New Corp 05/01/23 @ 5.54pm; which for mine, pretty much sums up the developments:

*MinRes snapped up 15 per cent of Warrego at 35c *and now there’s speculation it could capitalise on Hancock Energy’s sweetened 36c-a-share offer.   Mineral Resources could deliver effective control of Warrego Energy to Gina Rinehart’s Hancock Energy, after the company’s dramatic intervention into the ongoing takeover battle this week.  The Chris Ellison-led company is understood to have bought about 15 per cent of Warrego stock on Wednesday at 35c a share, including Regal Funds Management’s 9 per cent stake and shares held by other institutional investors.

Mrs Rinehart’s Hancock Energy immediately added 8c a share to its cash offer on Thursday, taking its bid to 36c, and said it would pay the full amount if it gained control of more than 40 per cent of the Warrego register.  About 25.9 per cent of Warrego stock had been accepted into the offer by December 30, meaning that MinRes could effectively hand control of Warrego to Mrs Rinehart if it flipped its shares into the Hancock bid at the small premium on offer.

MinRes is yet to comment on its dramatic intervention into the bidding war for the Perth Basin gas play, but its market move deals a major blow to the all-scrip offer by Hancock rival Strike Energy, which has offered one of its shares for each Warrego share on offer.

Strike owns 19.9 per cent of Warrego, and until MinRes’ foray into the market believed it was likely to pick up another 20.5 per cent of the company’s shares when its offer opens next week.  But despite the 28.5 per cent lift in the value of Hancock’s offer for Warrego, the market clearly still does not believe the bidding war is done, lifting the value of the company’s shares to a 38 close on Thursday.

Strike shares also benefited from the twin moves, with its shares up 4c to 37.5c on Thursday,* following a “clerical error” at the hands of MinRes’ lawyers, who put Strike’s Australian Business Number in place of that of Norwest Energy in the target statement for its own takeover tilt at Norwest.*

While a spokesman for MinRes dismissed the mistake as a “clerical error in drafting”, the mistake began a fresh round of speculation the company could be targeting Strike Energy as part of its own gas plans.  At stake is the development-ready West Erregulla gas project in WA, in which Strike and Warrego each own a half share, which the companies say could produce 87 terajoules a day of gas if approvals are granted.

Like MinRes, Strike has plans to use the gas for future downstream projects, having floated the prospect of building a $3.5bn urea plant in WA using gas produced from its local acreage.

Mr Ellison, who opened MinRes’ all-scrip offer for Norwest on Wednesday, told investors in December he planned to use the company’s gas production to power its WA mining operations, but eventually move into downstream manufacturing of fertilisers – urea and ammonia – rather than selling the gas not needed for its own domestic operations, into overseas markets.

*While MinRes’ intentions for its Warrego stake are not yet clear*,_ (** rcw1 has suspicions .... to isolate STX and make it more vulnerable for a take over by MinRes)_ the company has long had an extensive relationship with Mrs Rinehart’s WA mining operations. Currently the two companies are involved in a joint venture to develop new iron ore shipping berths at Port Hedland, and have an agreement for the shared use of railway facilities owned by Mrs Rinehart’s Roy Hill mine to help open up Pilbara deposits controlled by MinRes.

That agreement is the ultimate result of another takeover tussle, for Atlas Iron, in which both MinRes and Hancock were players.

MinRes launched its bid for Atlas in 2018 as the company struggled with low iron ore prices, targeting not just its mining operations but the company’s longstanding agreement with the WA state government to allow the development of a new shipping berth at Port Hedland.

Within months MinRes was forced to bow out of the friendly takeover tilt for Atlas after Andrew Forrest’s Fortescue Metals Group built a 20 per cent blocking stake in the company, eventually sold to Hancock Prospecting’s $390m cash bid.  That year MinRes also dipped out of its tilt at building a significant onshore gas presence in the Perth Basin through a takeover offer for ASX-listed AWE after Japanese giant Mitsui topped the company’s cash and scrip bid with a $602m all-cash offer.

Have a very nice evening.

Kind regards
rcw1


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## farmerge (5 January 2023)

rcw1 said:


> Good evening
> published via New Corp 05/01/23 @ 5.54pm; which for mine, pretty much sums up the developments:
> 
> *MinRes snapped up 15 per cent of Warrego at 35c *and now there’s speculation it could capitalise on Hancock Energy’s sweetened 36c-a-share offer.   Mineral Resources could deliver effective control of Warrego Energy to Gina Rinehart’s Hancock Energy, after the company’s dramatic intervention into the ongoing takeover battle this week.  The Chris Ellison-led company is understood to have bought about 15 per cent of Warrego stock on Wednesday at 35c a share, including Regal Funds Management’s 9 per cent stake and shares held by other institutional investors.
> ...



Looking good for STX


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## rcw1 (Tuesday at 6:47 PM)

Good afternoon
Latest percentages and stuff:

WGO Co-founder Duncan MacNiven to accept Hancock Energy’s revised cash offer for the 138,365,136 shares in Warrego he owns;
Fellow co-founder Dennis Donald, accepted Hancock’s offer on 30 December 2022;
Gina Rinehart at present according to Stockhead has 37.19% and counting... ;
STX isn't too far away behind with shareholders holding 10.68% of Warrego accepting its one-for-one scrip offer, taking its total interest up to 30.58%;
MIN has has acquired a 16.35% stake in Warrego; 
The identity of the buyer of Regal Funds Management’s 9.82% interest remains undisclosed; and
Still 6.06% undisclosed too.









						Warrego co-founders pick Hancock offer but the verdict is still out - Stockhead
					

While Hancock Energy now has a lead in the race for Warrego's hand, Strike Energy is still very much in the running.




					stockhead.com.au
				




Not holding.
Have a very nice evening.

Kind regards
rcw1


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## farmerge (Tuesday at 7:09 PM)

rcw1 said:


> Good afternoon
> Latest percentages and stuff:
> 
> WGO Co-founder Duncan MacNiven to accept Hancock Energy’s revised cash offer for the 138,365,136 shares in Warrego he owns;
> ...



Not holding Warrego either but an interested bystander watching from the sidelines.


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## Ferret (Tuesday at 9:40 PM)

I wonder if Beach did some on-market buying when it was a bidder and is still holding some WGO?  

Could be a nice little earner for them.


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