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.
