Mineral Resources (MinRes) today announced its intention to make an off-market takeover bid for Norwest Energy (Norwest).
Norwest is an ASX-listed Australian oil and gas exploration company investigating and developing petroleum opportunities across the onshore Perth Basin in Western Australia.
Norwest is a minority joint venture partner with MinRes in the Lockyer Deep gas project near Mingenew. This project is Norwest’s principal asset, with Norwest holding a non-operating interest in onshore Perth Basin exploration permits EP 368 (20%) and EP 426 (22.22%).
MinRes holds the remaining interest in these permits and is also Norwest’s largest shareholder, holding approximately 19.9% of shares on issue.
Our company has been building its onshore gas acreage position across the Perth and Carnarvon Basins since 2015 – headlined by a significant conventional gas discovery made by MinRes at Lockyer Deep in 2021.
Our interest in and operatorship of EP 368 and EP 426 underpins our view that acquiring Norwest will help unlock the potential of its portfolio of gas assets and create lasting value for both groups of shareholders under MinRes’ ownership.
Under the terms of the takeover bid, Norwest shareholders would receive one fully paid ordinary MinRes share for every 1,367 Norwest Shares they hold on the register date.
The scrip-based offer includes an attractive 33% premium to the closing price of Norwest shares on 15 December 2022 and the opportunity for Norwest shareholders to become a shareholder in MinRes, a leading ASX-listed company with proven ability to deliver exceptional shareholder returns.
MinRes’ offer will be open for acceptance by Norwest shareholders in early January 2023.
Our company has identified Energy as one of four growth pillars through which it seeks to safely deliver enduring value for our shareholders.
Introducing gas into MinRes’ energy supply chain – alongside significant investment in renewable energy – will also support our efforts to displace diesel across our operations.
MinRes Managing Director Chris Ellison said the takeover bid presents a compelling and unique opportunity for Norwest shareholders to join the MinRes family and be part of the next chapter of MinRes’ trajectory towards achieving significant value creation.
“MinRes has become one of Australia’s most successful companies because of our ability to identify and act early on opportunities that benefit our shareholders,” he said.
“We started accumulating what is now the largest acreage position in the onshore Perth and Carnarvon Basins in 2015 with a clearly articulated strategy to lock in a low-cost, long-life energy supply for our operations. This strategy also aligns with MinRes’ pathway to reducing our carbon emissions by 50% by 2035 and net zero emissions by 2050.”
“The scrip-based offer for our JV partner Norwest will consolidate Lockyer Deep’s project ownership and provide Norwest shareholders with exposure to a bigger prize.”
More information is available in our ASX Announcement
