Oil & Gas

Beach Energy enters $246 million proposal to acquire Warrego Energy shares

Beach Energy has entered into a proposal with Warrego Energy to acquire all of its issued shares, valued at $246 million.

Beach Energy’s offer to Warrego is conditional upon due diligence, including its negotiation of the binding implementation agreement.

Beach Energy CEO Morné Engelbrecht said the proposal to acquire Warrego Energy provides a unique opportunity to complement Beach Energy’s growth strategy in the Perth Basin while delivering compelling cash value recognition for Warrego shareholders.

“Beach has a significant acreage position in the Perth basin,” said Engelbrecht.

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“We are investing heavily to bring new gas supply to market, including Waitsia Stage 2 LNG volumes and gas exploration drilling which is soon to commence. The proposed acquisition of Warrego would complement our asset portfolio and provide further optionality to develop new gas supply for many years to come.”

Beach Energy hopes to commit to a binding agreement as early as possible. Warrego Energy’s acceptance would deliver immediate and certain value recognition for its shareholders.

The proposed acquisition would be funded through Beach Energy’s existing debt facilities and cash reserves.

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