Warrego Energy, Dyas and Mazarine Energy to commence AUD 40 million appraisal of West Australian gas assets

Aberdeen-based Warrego agrees to farmout terms for West Erregulla field with two Dutch E&P specialists

Perth, Australia, 25 February 2014 - Warrego Energy today announced that it has signed an AUD 40 million farmout agreement with E&P businesses Dyas BV and Mazarine Energy BV for the appraisal and development of the West Erregulla tight gas field in Western Australia (WA). Located onshore within the Perth Basin, West Erregulla has been assessed to contain an estimated 185 bcf (billion cubic feet) of gas in place with a 3 tcf (trillion cubic feet) unconventional upside potential. Following the completion of the agreement and the receipt of all regulatory approvals, the equity split will provide Warrego with 20%, Dyas 30% and Mazarine Energy 50% of the equity. 3D seismic surveying will commence in 2014 followed by appraisal well drilling in 2015. Under the terms of the agreement Mazarine Energy will take over operatorship from Warrego following the completion of the appraisal program.

Duncan MacNiven, Warrego Director, commented: "We are delighted that Dyas and Mazarine Energy have partnered with Warrego and become part of the emerging onshore Western Australian gas story. We look forward to working with our Dutch partners in the appraisal and development of West Erregulla. I have no doubt that their technical and commercial capabilities will add value and assist us in maximising returns from this exciting project."

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Warrego Energy is a private development and production company established to invest in and exploit a global portfolio of onshore unconventional gas assets through the application of innovative drilling and production techniques and technologies.

Warrego's initial investment is in Western Australia where the company is progressing development of the West Erregulla Field on Licence EP469 in the North Perth Basin.