Beach Energy downgrades Waitsia gas reserves ahead of cost increase

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The WA construction sector is suffering severe labour shortages and Clough is understood to have lost about 150 workers since it entered administration.

The downwards revision of proved and probable gas reserves in Beach’s 50 per cent of Waitsia – equivalent to 10.6 million barrels of oil – cut the total reserves of the $3.6 billion company by almost four per cent.

The reserves downgrade, announced with Beach’s quarterly results on Tuesday, came on the day that Gina Rinehart’s high-profile bid for Perth Basin gas play Warrego Energy was to close.

Rinehart’s Hancock Energy has offered 28 cents for each Warrego share, rising to 36 cents if it amasses 40 per cent of the firm that owns half of the West Erregulla gas field.

Hancock had just a 26 per cent stake a week ago and after trading closed on Tuesday extended its offer to February 10.

Strike Energy, Warrego’s partner in West Erregulla, which has a competing one-for-one scrip offer closing February 13, has amassed a 21 per cent stake so far.

Chris Ellison’s Mineral Resources has declared its 19 per cent stake as “strategic” and it has no intention of bidding for the company.

Beach Energy pulled out of the race in December after Hancock bid 28 cents a share.

When trading closed on Tuesday Warrego shares were priced at 34.5 cents a share and Strike scrip fetched 35.5 cents a share.

Beach Energy shares closed as they opened on Tuesday at $1.51.

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