Warrego has recommended the higher competing all-cash offer while also suggesting its shareholders wait to see if a better offer pops up. 

 

This has left billionaire Gina Rinehart's mining company subsidiary in the lead, giving her a lead in picking up her first West Australian gas acreage after buying half of Queensland's Senex Energy last year. 

 

The Adelaide company had five days to match Hancock's 28c per share offer, which the Warrego board decided was superior to Beach's 25cps, which represented a 25% revision to its initial all-cash 20cps offer of mid-November. 

 

Hancock first beat out Beach to offer 23cps. 

 

Strike Energy was the first to make a bid, with an all-scrip deal offering 0.775 of its shares for every Warrego share early November. The two partner at West Erregulla in the Perth Basin. 

 

Two days ago it announced it had amassed a 19.97% holding in Warrego via a one-for-one share swap with Warrego holders. It first built an 8.2% stake last year.  

 

Strike is operator of the West Erregulla field and owns 100% of the proximate South Erregulla field and has plans to develop a fertiliser project in the area.  

 

Beach already holds half of the Waitsia field in the same basin, and has a busy drill program coming up which will be its first in the area as operator. Warrego holds half of the West Erregulla gas project, a large position north of that and a percentage of two Spanish gas assets, 

 

"The multiple party bidding process for Warrego has reinforced our view of the value of our dominant acreage position in the Perth Basin and encourages us to expand our current active exploration drilling program in one of the most exciting gas plays in Australia," Beach CEO Morne Engelbrecht said. 

 

The collapse of contractor Clough, which was to develop the second phase of the Waitsia field, has completed things. Beach's share price fell 5% the same day the announcement came.   

 

"In applying Beach's disciplined approach to inorganic growth, we propose to invest further exploration capital into our existing prospects and drilling inventory in the Perth Basin. Beach will look to accelerate exploration, development and commercialisation of our acreage to deliver more gas for Western Australia," he said. 

 

He ruled out a bid for Strike, even before a shareprice rise that has seen its market cap nearly double in 30 days. 

 

The Warrego board unanimously recommends the Hancock offer, in the absence of a superior proposal. 

 

"This increase in Strike's percentage ownership of Warrego does not impact the availability of the revised Hancock Takeover Offer, which, as mentioned above, is not subject to any minimum acceptance condition," the company said today. 

 

Hancock's offer is open for all shareholders until January 31, 2023. Those accepting the offer will not be able to later accept a higher offer, or sell their shares on market at a higher share price. 

 

For now it advises shareholders take no action.