Australia’s Beach Energy enters deal to buy Warrego

Australia’s Beach Energy said it had entered into a scheme implementation deed with compatriot Warrego Energy to buy the latter for about A$246 million ($165 million).

Under the deal, Beach would acquire all the issued shares in Warrego for A$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, it said in a statement.

Beach said the proposed deal is “strategically compelling” and provides a unique opportunity to complement Beach’s growth strategy in the Perth Basin.

“It adds an additional development opportunity for new gas supply beyond Beach’s Waitsia Stage 2 LNG volumes and gas exploration drilling which is soon to commence,” it said.

In August, Beach finalized finalized a deal under which it will supply LNG to a unit of energy giant BP.

Under the sales and purchase deal, BP Singapore will buy about 3.75 million tonnes of Beach’s expected LNG volumes from the second stage of the Waitsia gas project in Western Australia.

Warrego’s portfolio includes assets such EP469 and EPA-0127 in the Perth Basin in Western Australia, as well as two prospects in Spain, El Romeral and Tesorillo.

Beach said that the Warrego board of directors have unanimously recommended that the company’s shareholders vote in favor of the scheme.

It expects to complete the deal on March 8, 2023.

- Advertisements -

Most Popular

TotalEnergies releases Mozambique LNG report

French energy giant TotalEnergies on Tuesday released a report regarding the humanitarian situation in the province of Cabo Delgado,...

BarMalGas to start building Rostock LNG terminal in 2023

Germany's BarMalGas is planning to start construction on an LNG and bio-LNG terminal in the German port of Rostock...

Shell and Equinor moving forward with giant Tanzania LNG project

Shell and Equinor are expecting to sign a host government agreement and a production sharing agreement for the giant...

More News Like This

Australia’s Beach Energy flags Waitsia delay

Australia’s Beach Energy said on Thursday that the second stage of the Waitsia gas project in Western Australia will...

Beach pens Waitsia deal with Webuild

Australia's Beach Energy has signed a deal with Italy's Webuild to complete the second stage of the Waitsia gas...

Waitsia contractor Clough placed under voluntary administration

Australian engineering and construction firm Clough, the main contractor of the Waitsia gas expansion project, was placed into voluntary...

Australia’s Beach Energy, BP finalize LNG supply deal

Australia’s Beach Energy said it has finalized a deal revealed last year under which it will supply LNG to...