The Warrego Energy Ltd (ASX: WGO) share price has spent today’s session in the green, capping off a gain of 2% over the last month.
Today’s gains come as the company released its quarterly results in the morning.
Let’s comb over what the company announced in a bit finer detail.
Warrego Energy activity report
Warrego provided an update on progress at its West Erregulla Field and Northern Perth Basin projects.
At West Eregulla, the company detailed “exciting flow results from WE-4” which achieved a sustained gas flow rate of 35 million standard cubic feet per day (MMscfd) of gas.
The total duration for the well was 57 days, and the WE-4 was cased for future production.
“Drilling performance in both WE-4 and WE-5 improved substantially on a time and cost basis compared to WE-2 and WE-3” the company stated in the report.
Warrego also explained that the Australian Gas and Infrastructure Group (AGIG) had completed the supplementary FEED study for the gas processing facility at West Erregulla.
AGIG and other stakeholders are “close to finalising construction and gas processing agreements for Phase 1” of the gas project at this site.
The company also provided an update on the Northern Perth Basin exploration.
Warrego also received “farm-in inquiries for EPA-0127” and will confidentially provide the data room access to interested parties.
Other key takeouts
Warrego also secured funding commitments for its pre-development activities at EP469 during the quarter.
In addition, it raised an additional $50 million via an equity round at 22 cents per new share.
The raise occurred via a “two-tranche placement” to investment fund Long Lead Items. The first tranche of $32.4 million was issued on 2 July.
However, the remaining $17.6 million still requires shareholder approval at a meeting on 10 August.
The financing is to be used at West Eregulla and the “re-entry and completion of the WE-3 well”.
One particular line that stood out in the report, is that the company is in “advanced discussions to form a banking club”.
The so called “club” consists of three domestic banks and will serve to provide project financing of up to $75 million for a 50% stake in Phase 1 of the West Eregulla project.
Investors seem in favour of Warrego’s progress. Warrego shares are now exchanging hands at 26 cents, a gain of 4% since the market open.
Warrego Energy share price snapshot
The Warrego Energy share price has gained 10% year to date, extending the previous 12 month’s return of 65%.
Although Warrego shares have lagged the broad index this year, they have beaten the S&P / ASX 200 Index (ASX: XJO)’s return of ~20% over the last year.
Warrego Energy has a market capitalisation of $291 million at the time of writing.