Warrego Energy strikes it big with multi-million farm-out deal

Warrego Energy have secured next phase exploration funding for their sizable West Erregulla Deep prospect in Western Australia, securing a number of jobs in the UK whilst allowing the team to advance its ambitious strategy for W.A. and beyond.

Warrego have farmed out 50% of their top tier prospect EP469 in the emerging Perth Basin to Strike Energy Limited (Strike - ASX:STX) which will see Strike acquire 50% interest and operatorship through a joint venture agreement.

Strike will fund 100% of the cost of drilling and completing one exploration well within the Permit and carrying out related G&G Studies and G&A costs, up to a maximum expenditure amount of A$11M within 24 months of commencement of the joint venture.

Strike M.D. Stuart Nicholls; 'It is an exciting time for Strike to enter the northern Perth Basin with a prospect analogous to the recent high-profile Waitsia discovery which is considered to be Australia's largest onshore gas discovery in 40 years

EP469 contains an onshore conventional gas prospect that can utilise existing infrastructure and is near to end users. This, coupled with the huge domestic and export gas demand in W.A., has the makings of a commercially significant gas project.'

Warrego Energy MD, Dennis Donald; 'We are delighted to be working with such a competent and technically driven partner in Strike. After assembling the excellent quality data set over the West Erregulla block it is exciting to begin well delivery preparations.'

Peter Veenhof, Warrego Executive team commented: 'The 3D seismic amplitudes indicates our reservoir quality has a good chance of being similar to the neighbouring Waitsia discovery which is achieving maximum commercial flow-rates of 90 MMcf/d.'