TESORILLO PROJECT IN CADIZ SPAIN
Warrego (ASX:WGO) are targeting conventional sandstone gas reservoirs on 94,000 acres. The Almarchal-1 well drilled in 1956 is the discovery well of what is very likely a large by-passed gas field. It was drilled by the Spanish firm Valdebro and intersected a thick section of possible gas pay which upon testing flowed gas to surface. The well is located 3km from the North African Maghreb gas trunkline providing ready access to high priced European gas markets. Under a share purchase agreement signed in mid-December 2017 up to 49.9% of the Tesorillo Project will be sold to AIM listed Prospex Energy Plc. Sale proceeds of €2.05m will be used by Warrego to fund its share of an agreed Tesorillo work programme (estimated at €3.8m) which includes agnetotelluric programmes (MT) and if successful, a well to target the Almarchal-1 discovery drilled in 1956. Netherland, Sewell and Associates (“NSAI”) have independently certified an unrisked Prospective Resource of up to 2.3 TCF (1,946 BCF 85% net to Warrego reducing to 1,147 BCF 50.1% net to Warrego upon completion of Prospex Share Purchase agreement) for the Tesorillo Project.