Beach in battle for Warrego

A battle is looming for Perth Basin hopeful Warrego Energy, with Beach Energy lobbing the second takeover offer revealed in two days.

It comes after Warrego’s partner in the West Erregulla project, Strike Energy, launched its own merger proposal.

Strike offered Warrego shareholders 0.775 new Strike shares for each unit of Warrego scrip they held. 

That equated to a price of 18.6 cents per share, based on Strike's 30-day average share price.

The Beach Energy move was announced to the bourse by Warrego this afternoon.

Beach, which counts Kerry Stokes’ Seven Group Holdings among its backers, is developing the nearby Waitisa project with Mitsui E&P.

The Adelaide-based oil and gas play has offered 20 cents cash per Warrego share.

That would value Warrego at $245 million.

Both the Beach and Strike bids require Warrego to jettison its Spanish interests.

Warrego is being advised by RBC Capital Markets and Allens. The company said shareholders should take no action yet.

Its shares had closed the day up 2.9 per cent at 18 cents each.