Warrego Energy has received firm commitments for a $50 million placement, which will be used to fund its 50 per cent share of commitments for phase one of the West Erregulla gas project, Western Australia.
The company advised that the placement was very strongly supported, reflecting its future growth potential as one of the few new sources of supply into the WA domestic gas market this decade.
The funding will also go towards long lead items for the 87 terjoules a day gas processing plant and the upstream gathering system; un-budgeted costs associated with the re-entry, drilling, testing and completion of the currently suspended West Erregulla 3 well, 3D seismic over the balance of the EP469 permit; early-stage explorations activity at EPA-0127; and genera working capital.
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