Petrel Energy Ltd announced on 19 November 2018, that it and Warrego Energy Ltd had signed a non-binding term sheet for the merger of the companies, via a reverse takeover.Â  Under the terms of the deal, Petrel will acquire Warrego Energy.Â  It remains subject to customary, relevant authority approvals.  A binding sale and purchase agreement will be the next steps in the transaction, which is expected to be signed in the coming weeks.Â  Under the initial terms outlined, Warrego shareholders will receive shares in Petrel, representing around 77% of the company.Â  A new listing of the combined company will be issued after the completion of the merger.  Warrego holds interest in exploration permit EP 469, located in the Perth Basin, which covers an area of 224 sq km and was awarded on 16 April 2010. In June 2018 Strike Energy Ltd completed an agreement to acquire a 50% interest and operatorship in EP 469 from Warrego.Â  The companies will form a joint venture holding the permit, and a joint operating agreement will be signed. A well was included in the farm-in deal, which must be drilled within 24 months of the commencement of the joint venture.Â  It is thought that it would target the Erregulla West field, which lies in the south-west of the permit. No wells have been drilled under the permitâs validity to date, but it does contain the Erregulla oil and Erregulla West gas discoveries, made in 1966 and 1990 respectively.
Petrel Energy Ltd announced on 19 November 2018, that it and Warrego Energy Ltd had signed a non-binding term sheet for the merger of the companies, via a reverse takeover.  Under the terms of the deal, Petrel will acquire Warrego Energy.