Australia-based Strike Energy has signed an agreement with Orica Australia to supply 150 Petajoules (PJ) of gas from PEL 96.
The agreement states that Orica can elect to make up to $52.5m of gas pre-payments to secure its gas offtake as Strike achieves appraisal and development milestones.
Strike will supply gas for 20 years from its PEL 96 licence in Cooper Basin, for which it holds 66.67% interest. Energy World holds the remaining stake of 33.33%.
The agreement allows Strike to evaluate and commercialise the prospective gas resources within PEL 96.
Orica managing director and CEO Ian Smith said that the agreement allows a new source of gas supply to the firm’s Australian east coast manufacturing plants at a reasonable price.
Strike Energy managing director David Wrench said the latest transaction allows the company to unlock potential gas resources in the firm’s southern Cooper Basin gas project.
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By GlobalData"Today’s announcement is a win-win for both parties, providing potential gas supply at an acceptable price for Orica while delivering to Strike a material contribution towards the appraisal and development of the project," Wrench added.
Strike is the operator of the project and plans to start field activities in the current quarter. The company holds unconventional shale oil and gas and conventional development projects in Australia and the US.
Image: Strike Energy has signed an agreement with Orica Australia to supply 150 PJ of gas. Photo: courtesy of Jarvin.
